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Canadian Dollar Gains in Currency Trading

Thursday, January 8th, 2009

Even with oil prices dropping, the loonie is up in forex tradingThe Canadian dollar is making a surprising gain against the U.S. dollar in currency trading on the FX market this morning. Even with oil prices falling again today, the loonie is on the rise in forex trading.

This is an odd train of events because the Canadian dollar relies heavily on oil prices. For the loonie to be rising while oil is dropping is a strange product of today’s economic climate.

For the most part, though, the loonie’s success in forex trading is more a testament to current U.S. dollar weakness than anything. Economic news keeps getting bad for the U.S., and that is bring the greenback down.

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Asian Currencies Affected in Forex Trading By U.S. Problems

Thursday, January 8th, 2009

South Korean won leads Asian currencies lower in forex tradingThe South Korean won is leading Asian currencies lower in forex trading as U.S. economic data points to fewer exports. Risk aversion is also playing a roll in the issues with Asian currencies.

The slowing U.S. economy, with job loss and consumer spending down, Asian currencies are suffering as the exports they rely on decline. Bloomberg reports on Asian currencies in forex trading:

“Risk aversion is picking up again,” said Nizam Idris, a currency strategist in Singapore at UBS AG, the world’s second- largest currency trader. “The market is concerned about the economy again. Under this sort of environment, Asian currencies will weaken.”

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Euro Gains in Forex Trading Against U.S. Dollar

Thursday, January 8th, 2009

Euro heads higher in currency tradingThe euro is heading higher again today in forex trading against the U.S. dollar. Even though the 15-nation currency is faltering against the U.K. pound, it continues its solid movement upward with regard to the greenback in FX trading.

Confidence in the U.S. economy has not been bolstered by president-elect Barack Obama’s warning concerning the likelihood of a recession that continues for years. Even with the expectation of an economic stimulus package, Obama has been warning that the recession won’t end as quickly as some would like.

Even though euro zone economic data is bad as well, the main burdens of the global economy seem to remain mainly on the U.S.

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Bank of England Cuts Interest Rates

Thursday, January 8th, 2009

Move sends sterling higher against dollar and euro in forex tradingToday, the Bank of England, in a move that was totally expected, cut interest rates to 1.5%. This is the lowest that the rate has been in the history of the Bank of England. And that’s pretty good, because the Bank of England has been around for 314 years. Since before the U.S. was even a country.

Today’s move has benefited the sterling in currency trading. The British currency is higher against both the U.S. dollar and the euro in forex trading, although it is struggling against some of the other majors (JPY and CHF).

The interest rate cut is supposed to help boost the British economy, but we will see whether it can overcome the persistent global recession.

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Canadian Dollar Drops in Forex Trading

Wednesday, January 7th, 2009

Oil prices bring loonie down in currency tradingThe Canadian dollar is down for the first time in four days in forex trading on the currency market. The main reason that the loonie is falling in currency trading is to do with the fact that oil prices are also lower.

The Canadian economy relies heavily on oil prices (the U.S. actually gets most of its oil from Canada). However, with the report that U.S. oil reserves are growing, oil prices are sliding again.

Global recession is weakening demand for oil around the world, and that means that the price is likely to remain relatively low until the global economy picks up.

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