FX Trading Tips

We have witnessed US Dollar weakness overnight and into this morning to the benefit of the Euro which surged to a high of 1.3159 (a 1 month high), now trading just below at 1.3130. The uncertainty surrounding the US auto industry is weighing on the Dollar. The bill designed to prevent the collapse of US automakers met with opposition in the Senate.

Opposition from Republican representatives may scupper the $14 Billion package. The loan package has been approved by the lower House.

Sterling was for once the stronger currency leading the strength against the Dollar. The Pound rose two cents from 1.4775 to 1.4984 while against the single currency it made some small headway.

Yesterday, Sterling hit an all-time low against the Euro at 0.8825 area. BOE’s Barker anticipates recovery towards end of 2009 but the UK economy is very weak and short term outlook is not strong.

The Russian Central Bank set the ruble-dollar rate at 27.9310. Since the beginning of August investors have removed about $200 billion from the Russia market (according to BNP Paribas) and the ruble has stumbled 16 percent against the US dollar – partially due to the global economic crisis and the falling oil price, but mainly because of Russia’s invasion of neighboring Georgia on the day the Olympic Games began in Beijing.

Russia devalued the ruble for the fifth time in a month, widening its trading band against the dollar and euro after reserves fell $161 billion defending the exchange rate.

Currency Market Snapshot

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The What Girl

I am a financial services writer with experience in forex trading and stock market analysis.

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