Archive for April, 2010
Opening Comment 04.29
With the exception of the New Zealand Dollar, all currencies are trading relatively flat ahead of the European open, as market participants pause for a breather and attempt to digest the latest wave of event risk.
Source:Opening Comment 04.29
What's an "Open" Candle?
Source:What's an "Open" Candle?
NZD/USD : Reserve Bank of New Zealand Interest Rate Decision
Interest rate expectations are the main driver of currency fluctuations which makes a change in monetary policy the biggest event risk for a currency. The RBNZ is expected to begin raising rates in the near-term which will generate considerable attention for this event, increasing the potential for volatility.
Source:NZD/USD : Reserve Bank of New Zealand Interest Rate Decision
Euro Continues To See Price Action Dictated By Sovereign Credit Downgrades
EUR/USD
The Euro continues to see price action dictated by the credit issues that continue to plaque the PIIGS. Spain saw its credit rating downgraded by S&P today following reductions to Greece’s and Portugal’s status yesterday. The single currency continues to be weighed by the region’s issues which are now impacting broader markets. Indeed, stocks have started to trade lower as the rising yields have increased concerns that the sovereign credit issues could become a contagion for all of Europe and beyond. This is evident in the EUR/USD’s correlation with the Dow which strengthened to 34% from 28%. Despite recent strength the EUR/USD and risk sentiment has started to see its relationship weaken, and future divergence must be guarded against when trading the pair.
Source:Euro Continues To See Price Action Dictated By Sovereign Credit Downgrades