Many centuries ago, the value of goods were expressed in terms of other goods. This sort of economics was based on the barter system between individuals. The obvious limitations of such a system encouraged establishing more generally accepted mediums of exchange. It was important that a common base of value could be established. In some economies, items such as teeth, feathers even stones served this purpose, but soon various metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value.
Coins were initially minted from the preferred metal and in stable political regimes, the introduction of a paper form of governmental I.O.U. during the Middle Ages also gained acceptance. This type of I.O.U. was introduced more successfully through force than through persuasion and is now the basis of today’s modern currencies.
Before the first World war, most Central banks supported their currencies with convertibility to gold. Paper money could always be exchanged for gold. However, for this type of gold exchange, there was not necessarily a Centrals bank need for full coverage of the government's currency reserves. This did not occur very often, however when a group mindset fostered this disastrous notion of converting back to gold in mass, panic resulted in so-called "Run on banks " The combination of a greater supply of paper money without the gold to cover led to devastating inflation and resulting political instability.
In order to protect local national interests, increased foreign exchange controls were introduced to prevent market forces from punishing monetary irresponsibility.
Near the end of WWII, The Bretton Woods agreement was reached on the initiative of the USA in July 1944. The conference held in Bretton Woods, New Hampshire rejected John Maynard Keynes suggestion for a new world reserve currency in favor of a system built on the US Dollar. International institutions such as the IMF, The World Bank and GATT were created in the same period as the emerging victors of WWII searched for a way to avoid the destabilizing monetary crises leading to the war. The Bretton Woods agreement resulted in a system of fixed exchange rates that reinstated The Gold Standard partly, fixing the USD at $35.00 per ounce of Gold and fixing the other main currencies to the dollar, initially intended to be on a permanent basis.
The Bretton Woods system came under increasing pressure as national economies moved in different directions during the 1960’s. A number of realignments held the system alive for a long time but eventually Bretton Woods collapsed in the early 1970’s following president Nixon's suspension of the gold convertibility in August 1971. The dollar was not any longer suited as the sole international currency at a time when it was under severe pressure from increasing US budget and trade deficits.
The last few decades have seen foreign exchange trading develop into the worlds largest global market. Restrictions on capital flows have been removed in most countries, leaving the market forces free to adjust foreign exchange rates according to their perceived values.
In Europe, the idea of fixed exchange rates had by no means died. The European Economic Community introduced a new system of fixed exchange rates in 1979, the European Monetary System. This attempt to fix exchange rates met with near extinction in 1992-93, when built-up economic pressures forced devaluations of a number of weak European currencies. The quest continued in Europe for currency stability with the 1991 signing of The Maastricht treaty. This was to not only fix exchange rates but also actually replace many of them with the Euro in 2002.
Today, Europe has embraced the Euro in 12 participating countries. The physical introduction of the Euro on January 1, 2002 saw the old countries currencies made obsolete on July 1, 2002.
In Asia, the lack of sustainability of fixed foreign exchange rates has gained new relevance with the events in South East Asia in the latter part of 1997, where currency after currency was devalued against the US dollar, leaving other fixed exchange rates in particular in South America also looking very vulnerable.
While commercial companies have had to face a much more volatile currency environment in recent years, investors and financial institutions have discovered a new playground. The size of the FOREX market now dwarfs any other investment market.
It is estimated that more than USD 1,200 Billion are traded every day, that is the same amount as almost 40 times the daily USD volume on the American NASDAQ market.
http://www.universityforex.com
Saturday, June 2, 2007
What is the FOREX Market
The Foreign Exchange (FOREX) market is by far the largest market in the world. The $1.3 trillion average daily turnover dwarfs the daily turnover of the American stock and bond markets combined. There are many reasons for the popularity of foreign exchange trading, but among the most important is the available margin trading, the 24-hour a day 5 day a week liquidity, and low if any commissions.
Of course many commercial organizations are participating purely due to the currency exposures created by their financial institutions accounts on their import and export activities. Investing in foreign exchange remains predominantly a domain of the big professional players in the market such as hedge funds, banks and brokers. Nevertheless, any investor with the necessary knowledge is and complete understanding of this market can benefit from this exciting arena.
Margin Trading
Foreign exchange trading is normally undertaken on the basis of margin trading or gearing. A relatively small deposit is required in order to control much larger positions in the market. This is possible because when you buy one currency you sell another. Margin requirements are set by your Customer broker and vary from as little as 1% to 10% margin. This means that in order to trade 1,000,000 USD on 1 % margin, you need to place just 10,000 USD by way of security. That same security of 10,000 USD, traded on a 10% margin could control up to 100,000 USD worth of one currency against another currency.
As you can see, with gearing your capital from 10 to 100 times calls for a very disciplined approach to trading as both profit opportunities and potential loss are equal and opposite.
Trade Currency and Price Currency
When you trade, you will always trade a combination of two currencies. For example, you will buy US dollars and sell Japanese Yen or buy Euros and sell Japanese Yen. There are many combinations of the dozens of widely traded currencies. There is always a long (bought) and a short (sold) side to each trade. This means that you are speculating in the prospect of one of the currencies strengthening and one of them weakening.
The trade currency or dealt currency is normally, but not always, the currency with the highest value. When for example trading US dollars against Japanese Yen, the normal way to trade is buying or selling a fixed amount of US dollars, USD 100,000. When closing the position, the opposite trade is done, again USD 100,000. The profit or loss based on price change will be apparent in the amount of Yen credited and debited for the two transactions. In other words, your profit or loss will be denominated in Japanese Yen that are known as the price currency.
24/5 and No Central Location
The FOREX Market has no fixed location. It is a market based on the vast network of hundreds of major banks and their branch offices across the globe. The liquidity is always there because someone, somewhere can make a price. From Monday morning in New Zealand to Friday afternoon on the California Coast the FOREX Market is basically a 24 hour 5 day a week market that does not stop. Australasia starts a day then comes the Asian market, then Europe, followed by the American and Canadian markets then Australasia again and the cycle continues with the markets closed only on the weekends or in countries with bank or national Holidays.
Spreads not Commissions
When trading foreign exchange, you are always quoted a 2-sided dealing price where you can buy or sell the trade currency. The difference between the buy and sell price is the spread
The dealing spread is typically around 5 basis points or pips under normal market conditions, e.g. EUR/USD 1.2250-55. This means that you can sell Euros against US Dollars at 1.2250 and buy Euros at 1.2255. There are no more costs, no commissions or exchange fees because so called commissions are built into the spreads. The wider the spread the bigger the commission!
Spot and forward trading (Swaps)
When you trade foreign exchange you are always quoted a spot price valued 2 business days in advance. This is under normal conditions where there are no bank holidays in the traded currencies countries or is not over a weekend. If you trade on Monday it is valued Wednesday. If you trade on Friday it is valued Tuesday.
Forward trading is making the opposite trade of a spot trade in a given period of time. Often investors will swap their trades forward for anywhere from a week or two up to several months depending on the time frame of the investment. Most common is one-day rollovers, keeping a spot position overnight. These overnight positions are technically one-day forwards. It is very important to know what interest you paying if short and what interest you are receiving if long when keeping an overnight position. Even though a forward trade is on a future date, the position can be closed out at any time. The closing part of the position is then swapped forward to the same future value date.
Stop-Loss discipline
There are significant opportunities and of course risks in the foreign exchange markets. Aggressive traders might experience profit/loss swings of 20-30% daily. This calls for strict self-disciplined stop-loss policies in positions that are moving against you.
Luckily, there are no daily limits on foreign exchange trading and no restrictions on trading hours other than the weekends. This means that there will nearly always be a possibility to react to moves in the main currency markets and low risk of getting caught without possibility of getting out. This market can move very fast and a stop-loss order is by no means a guarantee of getting out at the desired level.
http://www.universityforex.com
The History of Forex Trading
Many centuries ago, the value of goods were expressed in terms of other goods. This sort of economics was based on the barter system between individuals. The obvious limitations of such a system encouraged establishing more generally accepted mediums of exchange. It was important that a common base of value could be established. In some economies, items such as teeth, feathers even stones served this purpose, but soon various metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value.
Coins were initially minted from the preferred metal and in stable political regimes, the introduction of a paper form of governmental I.O.U. during the Middle Ages also gained acceptance. This type of I.O.U. was introduced more successfully through force than through persuasion and is now the basis of today’s modern currencies.
Before the first World war, most Central banks supported their currencies with convertibility to gold. Paper money could always be exchanged for gold. However, for this type of gold exchange, there was not necessarily a Centrals bank need for full coverage of the government's currency reserves. This did not occur very often, however when a group mindset fostered this disastrous notion of converting back to gold in mass, panic resulted in so-called "Run on banks " The combination of a greater supply of paper money without the gold to cover led to devastating inflation and resulting political instability.
In order to protect local national interests, increased foreign exchange controls were introduced to prevent market forces from punishing monetary irresponsibility.
Near the end of WWII, The Bretton Woods agreement was reached on the initiative of the USA in July 1944. The conference held in Bretton Woods, New Hampshire rejected John Maynard Keynes suggestion for a new world reserve currency in favor of a system built on the US Dollar. International institutions such as the IMF, The World Bank and GATT were created in the same period as the emerging victors of WWII searched for a way to avoid the destabilizing monetary crises leading to the war. The Bretton Woods agreement resulted in a system of fixed exchange rates that reinstated The Gold Standard partly, fixing the USD at $35.00 per ounce of Gold and fixing the other main currencies to the dollar, initially intended to be on a permanent basis.
The Bretton Woods system came under increasing pressure as national economies moved in different directions during the 1960’s. A number of realignments held the system alive for a long time but eventually Bretton Woods collapsed in the early 1970’s following president Nixon's suspension of the gold convertibility in August 1971. The dollar was not any longer suited as the sole international currency at a time when it was under severe pressure from increasing US budget and trade deficits.
The last few decades have seen foreign exchange trading develop into the worlds largest global market. Restrictions on capital flows have been removed in most countries, leaving the market forces free to adjust foreign exchange rates according to their perceived values.
In Europe, the idea of fixed exchange rates had by no means died. The European Economic Community introduced a new system of fixed exchange rates in 1979, the European Monetary System. This attempt to fix exchange rates met with near extinction in 1992-93, when built-up economic pressures forced devaluations of a number of weak European currencies. The quest continued in Europe for currency stability with the 1991 signing of The Maastricht treaty. This was to not only fix exchange rates but also actually replace many of them with the Euro in 2002.
Today, Europe has embraced the Euro in 12 participating countries. The physical introduction of the Euro on January 1, 2002 saw the old countries currencies made obsolete on July 1, 2002.
In Asia, the lack of sustainability of fixed foreign exchange rates has gained new relevance with the events in South East Asia in the latter part of 1997, where currency after currency was devalued against the US dollar, leaving other fixed exchange rates in particular in South America also looking very vulnerable.
While commercial companies have had to face a much more volatile currency environment in recent years, investors and financial institutions have discovered a new playground. The size of the FOREX market now dwarfs any other investment market.
It is estimated that more than USD 1,200 Billion are traded every day, that is the same amount as almost 40 times the daily USD volume on the American NASDAQ market.
http://www.universityforex.com
Coins were initially minted from the preferred metal and in stable political regimes, the introduction of a paper form of governmental I.O.U. during the Middle Ages also gained acceptance. This type of I.O.U. was introduced more successfully through force than through persuasion and is now the basis of today’s modern currencies.
Before the first World war, most Central banks supported their currencies with convertibility to gold. Paper money could always be exchanged for gold. However, for this type of gold exchange, there was not necessarily a Centrals bank need for full coverage of the government's currency reserves. This did not occur very often, however when a group mindset fostered this disastrous notion of converting back to gold in mass, panic resulted in so-called "Run on banks " The combination of a greater supply of paper money without the gold to cover led to devastating inflation and resulting political instability.
In order to protect local national interests, increased foreign exchange controls were introduced to prevent market forces from punishing monetary irresponsibility.
Near the end of WWII, The Bretton Woods agreement was reached on the initiative of the USA in July 1944. The conference held in Bretton Woods, New Hampshire rejected John Maynard Keynes suggestion for a new world reserve currency in favor of a system built on the US Dollar. International institutions such as the IMF, The World Bank and GATT were created in the same period as the emerging victors of WWII searched for a way to avoid the destabilizing monetary crises leading to the war. The Bretton Woods agreement resulted in a system of fixed exchange rates that reinstated The Gold Standard partly, fixing the USD at $35.00 per ounce of Gold and fixing the other main currencies to the dollar, initially intended to be on a permanent basis.
The Bretton Woods system came under increasing pressure as national economies moved in different directions during the 1960’s. A number of realignments held the system alive for a long time but eventually Bretton Woods collapsed in the early 1970’s following president Nixon's suspension of the gold convertibility in August 1971. The dollar was not any longer suited as the sole international currency at a time when it was under severe pressure from increasing US budget and trade deficits.
The last few decades have seen foreign exchange trading develop into the worlds largest global market. Restrictions on capital flows have been removed in most countries, leaving the market forces free to adjust foreign exchange rates according to their perceived values.
In Europe, the idea of fixed exchange rates had by no means died. The European Economic Community introduced a new system of fixed exchange rates in 1979, the European Monetary System. This attempt to fix exchange rates met with near extinction in 1992-93, when built-up economic pressures forced devaluations of a number of weak European currencies. The quest continued in Europe for currency stability with the 1991 signing of The Maastricht treaty. This was to not only fix exchange rates but also actually replace many of them with the Euro in 2002.
Today, Europe has embraced the Euro in 12 participating countries. The physical introduction of the Euro on January 1, 2002 saw the old countries currencies made obsolete on July 1, 2002.
In Asia, the lack of sustainability of fixed foreign exchange rates has gained new relevance with the events in South East Asia in the latter part of 1997, where currency after currency was devalued against the US dollar, leaving other fixed exchange rates in particular in South America also looking very vulnerable.
While commercial companies have had to face a much more volatile currency environment in recent years, investors and financial institutions have discovered a new playground. The size of the FOREX market now dwarfs any other investment market.
It is estimated that more than USD 1,200 Billion are traded every day, that is the same amount as almost 40 times the daily USD volume on the American NASDAQ market.
http://www.universityforex.com
Friday, June 1, 2007
Swiss Franc Weakens Against Majors Amid Inflation Data Early Friday, Friday, June 01, 2007 3:13:17 AM
The Swiss Franc showed weakness against the other major currencies during the early hours on Friday in New York. The Swiss consumer price index data for the month of May was released at 1:45 am ET. Ahead of the release, the Franc showed a mixed performance. While the Franc trended higher versus the Yen, it dropped against the dollar. On the other hand, the Franc moved sideways against the euro and the Cable. However, amid the release, the major Swiss Franc pairs lost ground. The German April retail sales data which was also released during the session weakened the Franc further against the euro.
Swiss Consumer Price index rose 0.2% on month in May and it gained 0.5% on a yearly basis. The CPI numbers for May came in line with economists` expectations.
The traders are now looking for the Swiss SVME purchasing managers index for May and the Euro-Zone April unemployment rate.
The US April personal income and spending, unemployment rate and the average hourly earnings-both for the month of May, pending home sales for April, ISM Manufacturing survey and the university of Michigan`s consumer sentiment survey for May are scheduled for later in the morning.
The Swiss currency moved sideways against the US dollar until about 10:00 pm ET Thursday. The Franc then slipped slightly but it bounced back within one and half hours. However, at about 1:00 am ET on Friday, ahead of the release of the Swiss May CPI data, the Franc started to trade lower. The Franc edged further lower following the release and traded at 1.2279 against the dollar as of 3:10 am Eastern Time.
Late Thursday in New York, the Swiss Franc traded in a tight range versus the euro. The Franc lost ground by about 1:45 am ET and this was amid the release of the Swiss May CPI data. The German April retail sales which was also released during the session weakened the Franc further. As of 3:10 am Eastern Time, the Franc was quoted at 1.6502 against the euro.
Against the British currency, the Swiss Franc drifted higher on late Thursday evening in New York. After fetching a high of 2.4236 at 8:45 pm ET, the Franc lost some pips and then moved sideways. The pair extended the same trend until the Swiss inflation data was released at 1:45 am ET Friday. Following the release, the Franc ticked down and collected 2.4291 against the Cable as of 3:10 am Eastern Time.
The Swiss Franc showed choppy trading versus the Japanese Yen during the late hours on Thursday. However, the pair made some advances at about 12:30 am ET Friday and hit as high as 99.49 after about an hour. Soon after, amid the release of the Swiss CPI data for May, the Franc gave back the gains completely and lost ground further. As of 3:10 am Eastern Time, the pair was worth 99.29.
Swiss Consumer Price index rose 0.2% on month in May and it gained 0.5% on a yearly basis. The CPI numbers for May came in line with economists` expectations.
The traders are now looking for the Swiss SVME purchasing managers index for May and the Euro-Zone April unemployment rate.
The US April personal income and spending, unemployment rate and the average hourly earnings-both for the month of May, pending home sales for April, ISM Manufacturing survey and the university of Michigan`s consumer sentiment survey for May are scheduled for later in the morning.
The Swiss currency moved sideways against the US dollar until about 10:00 pm ET Thursday. The Franc then slipped slightly but it bounced back within one and half hours. However, at about 1:00 am ET on Friday, ahead of the release of the Swiss May CPI data, the Franc started to trade lower. The Franc edged further lower following the release and traded at 1.2279 against the dollar as of 3:10 am Eastern Time.
Late Thursday in New York, the Swiss Franc traded in a tight range versus the euro. The Franc lost ground by about 1:45 am ET and this was amid the release of the Swiss May CPI data. The German April retail sales which was also released during the session weakened the Franc further. As of 3:10 am Eastern Time, the Franc was quoted at 1.6502 against the euro.
Against the British currency, the Swiss Franc drifted higher on late Thursday evening in New York. After fetching a high of 2.4236 at 8:45 pm ET, the Franc lost some pips and then moved sideways. The pair extended the same trend until the Swiss inflation data was released at 1:45 am ET Friday. Following the release, the Franc ticked down and collected 2.4291 against the Cable as of 3:10 am Eastern Time.
The Swiss Franc showed choppy trading versus the Japanese Yen during the late hours on Thursday. However, the pair made some advances at about 12:30 am ET Friday and hit as high as 99.49 after about an hour. Soon after, amid the release of the Swiss CPI data for May, the Franc gave back the gains completely and lost ground further. As of 3:10 am Eastern Time, the pair was worth 99.29.
Copyright © 2007 RTTNews.com. All Rights Reserved.
Euro Mixed Early Friday In New York, Euro-zone Unemployment Data In Focus, Friday, June 01, 2007 2:52:40 AM
The European currency saw mixed performance during late New York trading on Thursday. The euro moved up against the dollar and the pound in the evening deals, but giving back those gains, it moved sideways in the late night hours.
Against the Swiss franc, the euro held a loose range in the evening deals, but the pair held a tight range marginally higher from the previous one, in late night trading. Meanwhile, the euro rallied against the Japanese yen amid a lack of data from the Asian giant.
The Swiss consumer price index for May and the German April retail sales data were released during early New York deals on Friday. The euro weakened against the dollar but it moved sideways against the sterling in the session. While the common currency showed choppy trading against the yen, it rallied against the Swiss franc.
Investors are now looking forward to the set of data from Euro-zone slated for release at 5:00 am ET. Among the various fundamentals, the euro-zone unemployment data for April is likely to be scrutinized by the markets.
However, the markets will be keenly waiting for the U.S. non-farm pay rolls for May expected at 8:30 am ET. Other key U.S. releases slated for release on Friday include April personal income and spending, May unemployment and April pending home sales.
The euro ticked up against the dollar in New York evening trading on Thursday, but from 1.3455, the pair lost ground at about 8:00 pm ET. The pair entered a tight range within about a couple hours of that, but has dropped to 1.344, lately. Largely, after fetching a 5-week high around 1.35 on May 22nd, the pair has been moving sideways.
The common currency gained ground against the pound at about 5:45 pm ET on Thursday, and the pair reached as high as 0.6799 by about 8:45 pm ET. Thereafter, the pair weakened slightly, but entered a tight range by around 10:30 pm ET. Of late, the pair has been moving near 0.679. Largely, the pair has improved slightly after hitting a 5-week low around 0.675 on May 24th. If strengthens further, 0.685 will be a likely level of resistance for the pair.
The euro moved sideways in a loose range against the yen during New York evening deals on Thursday. From a range that bounced between 163.71 and 163.81, the pair moved by about 9:00 pm. Within about an hour of that, the euro dropped a few pips, but regained the momentum, shortly thereafter. Of late, the pair has weakened and is now trading near 163.85. Largely, since setting a new multi-year high by mid-May, the pair has been moving sideways between 162.18 and 164.28.
The European currency held a tight range against the Swiss franc during late night trading on Thursday in New York. The pair rallied out of the range that limited between 1.6482 and 1.6487 amid the Swiss inflation news, which struck the market at 1:45 am ET. The euro continued higher amid the German release that followed shortly, but has shed a few pips, lately. At about 2:40 am ET, the pair was quoted at 1.6494. Largely, the euro has been moving sideways against its Swiss counterpart after hitting a 20-day low on Tuesday.
Against the Swiss franc, the euro held a loose range in the evening deals, but the pair held a tight range marginally higher from the previous one, in late night trading. Meanwhile, the euro rallied against the Japanese yen amid a lack of data from the Asian giant.
The Swiss consumer price index for May and the German April retail sales data were released during early New York deals on Friday. The euro weakened against the dollar but it moved sideways against the sterling in the session. While the common currency showed choppy trading against the yen, it rallied against the Swiss franc.
Investors are now looking forward to the set of data from Euro-zone slated for release at 5:00 am ET. Among the various fundamentals, the euro-zone unemployment data for April is likely to be scrutinized by the markets.
However, the markets will be keenly waiting for the U.S. non-farm pay rolls for May expected at 8:30 am ET. Other key U.S. releases slated for release on Friday include April personal income and spending, May unemployment and April pending home sales.
The euro ticked up against the dollar in New York evening trading on Thursday, but from 1.3455, the pair lost ground at about 8:00 pm ET. The pair entered a tight range within about a couple hours of that, but has dropped to 1.344, lately. Largely, after fetching a 5-week high around 1.35 on May 22nd, the pair has been moving sideways.
The common currency gained ground against the pound at about 5:45 pm ET on Thursday, and the pair reached as high as 0.6799 by about 8:45 pm ET. Thereafter, the pair weakened slightly, but entered a tight range by around 10:30 pm ET. Of late, the pair has been moving near 0.679. Largely, the pair has improved slightly after hitting a 5-week low around 0.675 on May 24th. If strengthens further, 0.685 will be a likely level of resistance for the pair.
The euro moved sideways in a loose range against the yen during New York evening deals on Thursday. From a range that bounced between 163.71 and 163.81, the pair moved by about 9:00 pm. Within about an hour of that, the euro dropped a few pips, but regained the momentum, shortly thereafter. Of late, the pair has weakened and is now trading near 163.85. Largely, since setting a new multi-year high by mid-May, the pair has been moving sideways between 162.18 and 164.28.
The European currency held a tight range against the Swiss franc during late night trading on Thursday in New York. The pair rallied out of the range that limited between 1.6482 and 1.6487 amid the Swiss inflation news, which struck the market at 1:45 am ET. The euro continued higher amid the German release that followed shortly, but has shed a few pips, lately. At about 2:40 am ET, the pair was quoted at 1.6494. Largely, the euro has been moving sideways against its Swiss counterpart after hitting a 20-day low on Tuesday.
Copyright © 2007 RTTNews.com. All Rights Reserved.
Dollar Mixed Against Southeast Asian Counterparts Late Thursday, Friday, June 01, 2007 1:32:02 AM
During late Thursday in New York, the US dollar showed a mixed performance against its Southeast Asian counterparts. The US dollar spiked higher versus the Hong Kong dollar, but it held steady with the Thai Baht. On the other hand, the Greenback largely showed choppy trading against the Singapore dollar and the Malaysian Ringgit.
To the other major Asian currencies like the Japanese Yen and the Indian Rupee, the dollar advanced slightly during the session, but it dropped against the South Korean Won. The South Korean Q1 GDP data released during the session is likely to have an effect on trading in the dollar versus the Won.
The Bank of Korea said in a preliminary report that the South Korean GDP expanded 0.9% sequentially in the first quarter. Annually, the economy grew 4.0%, the same as in the prior quarter.
Against the Singapore dollar, the US currency moved sideways in the evening deals on Thursday. The pair slid briefly by about 8:55 pm ET, but it rebounded within a few minutes and ticked further higher. The Greenback lost ground again at about 9:45 pm ET and then showed a choppy trend. As of 1:30 am Eastern Time Friday, the pair traded at 1.5292.
The Greenback made a sharp spike higher versus the Hong Kong dollar at 5:10 pm Eastern Time Thursday. The pair carried over its uptrend for the next few hours and thus it climbed from 7.8073 to 7.8151 by about 11:00 pm ET. Thereafter, the pair dropped slightly and moved sideways. As of 1:30 am ET on Friday, the Greenback was quoted at 7.8143 Hong Kong dollars.
Until about 8:00 pm ET on Thursday, the US dollar traded in a tight range against the South Korean Won. The pair then fell sharply and touched a low of 926.0999 within half an hour. Soon after, the dollar bounced back most of its losses but it edged lower again at about 11:00 pm ET. Lately the dollar is trading slightly higher and collected 927.5999 Won as of 1:30 am Eastern Time Friday.
The US dollar weakened slightly versus the Indian Rupee on late Thursday in New York. However, at about 9:55 pm ET, off 40.2750 the dollar surged to 40.5900 within about a couple of hours. The dollar then shed some pips and it was worth 40.5450 Rupees as of 1:30 am Eastern Time Friday.
The Greenback lost ground against its Thailand counterpart on Thursday afternoon in New York. After hitting as low as 32.6450 by about 3:20 pm ET, the pair made some advances but it held steady within a few minutes. The pair extended the same trend during the late hours and as of 1:30 am Eastern Time Friday, the Greenback fetched 32.8250 against the Thai Baht.
To the other major Asian currencies like the Japanese Yen and the Indian Rupee, the dollar advanced slightly during the session, but it dropped against the South Korean Won. The South Korean Q1 GDP data released during the session is likely to have an effect on trading in the dollar versus the Won.
The Bank of Korea said in a preliminary report that the South Korean GDP expanded 0.9% sequentially in the first quarter. Annually, the economy grew 4.0%, the same as in the prior quarter.
Against the Singapore dollar, the US currency moved sideways in the evening deals on Thursday. The pair slid briefly by about 8:55 pm ET, but it rebounded within a few minutes and ticked further higher. The Greenback lost ground again at about 9:45 pm ET and then showed a choppy trend. As of 1:30 am Eastern Time Friday, the pair traded at 1.5292.
The Greenback made a sharp spike higher versus the Hong Kong dollar at 5:10 pm Eastern Time Thursday. The pair carried over its uptrend for the next few hours and thus it climbed from 7.8073 to 7.8151 by about 11:00 pm ET. Thereafter, the pair dropped slightly and moved sideways. As of 1:30 am ET on Friday, the Greenback was quoted at 7.8143 Hong Kong dollars.
Until about 8:00 pm ET on Thursday, the US dollar traded in a tight range against the South Korean Won. The pair then fell sharply and touched a low of 926.0999 within half an hour. Soon after, the dollar bounced back most of its losses but it edged lower again at about 11:00 pm ET. Lately the dollar is trading slightly higher and collected 927.5999 Won as of 1:30 am Eastern Time Friday.
The US dollar weakened slightly versus the Indian Rupee on late Thursday in New York. However, at about 9:55 pm ET, off 40.2750 the dollar surged to 40.5900 within about a couple of hours. The dollar then shed some pips and it was worth 40.5450 Rupees as of 1:30 am Eastern Time Friday.
The Greenback lost ground against its Thailand counterpart on Thursday afternoon in New York. After hitting as low as 32.6450 by about 3:20 pm ET, the pair made some advances but it held steady within a few minutes. The pair extended the same trend during the late hours and as of 1:30 am Eastern Time Friday, the Greenback fetched 32.8250 against the Thai Baht.
Copyright © 2007 RTTNews.com. All Rights Reserved.
Yen Weakens Across The Board Late Night Trading On Thursday In New York, Friday, June 01, 2007 12:47:21 AM
The Japanese yen saw choppy trading in New York evening deals on Thursday, but it lost heavily across the board in late night trading.
Late Thursday deals came amid a lack of economic data, and the markets are waiting to witness an influx of data in the European session.
The key releases in the European session include the Swiss consumer price index for May, the German retail sales for April and the Euro-zone unemployment rate for April.
However, markets will be keenly waiting for the U.S. non-farm pay rolls for May expected at 8:30 am ET on Friday. Other key U.S. releases slated for release on Friday include April personal income and spending, May unemployment and April pending home sales.
The yen saw choppy trading against the dollar in the evening deals on Thursday in New York. At about 8:15 pm ET, the Japanese currency lost ground against the greenback and moving from 121.68, the pair traded near 121.86 lately. Broadly speaking, after hitting a 3-month low on 22nd May, the pair has been holding steady.
The Japanese currency traded in a wide range against the euro during the initial hours in late New York trading on Thursday. The pair bounced between 163.71 and 163.81 in this session, but it moved out of the range at about 9:00 pm ET. From the range, the pair weakened to 163.86 by about 9:50 pm, but it rebounded briefly, thereafter. However, of late, the yen has weakened again, taking the current values to around 163.9. Largely, after setting a new multi-year low by mid-May, the pair moved sideways between 162.18 and 164.28.
In late New York afternoon on Thursday, the Japanese yen ticked down against the pound, but the pair rebounded from 5:55 pm ET. Moving from 241.13, the pair collected as high as 240.86 at about 8:40 pm, but thereafter, it weakened again. Of late, the pair has been trading near 241.2. Largely, after registering a 4-month low around 241.68 on May 22nd, the pair has improved slightly.
The Japanese currency saw directionless trading against the Swiss franc during the initial hours in late New York trading on Thursday. However, by about 8:15 pm, the yen slipped from the range, and fetched as low as 99.41 at about 9:40 pm ET. Thereafter, the Japanese unit trended higher slightly, but has given back those gains, lately. Largely, the pair has given back its gains collected in the second week of May, towards the last week of the month.
Late Thursday deals came amid a lack of economic data, and the markets are waiting to witness an influx of data in the European session.
The key releases in the European session include the Swiss consumer price index for May, the German retail sales for April and the Euro-zone unemployment rate for April.
However, markets will be keenly waiting for the U.S. non-farm pay rolls for May expected at 8:30 am ET on Friday. Other key U.S. releases slated for release on Friday include April personal income and spending, May unemployment and April pending home sales.
The yen saw choppy trading against the dollar in the evening deals on Thursday in New York. At about 8:15 pm ET, the Japanese currency lost ground against the greenback and moving from 121.68, the pair traded near 121.86 lately. Broadly speaking, after hitting a 3-month low on 22nd May, the pair has been holding steady.
The Japanese currency traded in a wide range against the euro during the initial hours in late New York trading on Thursday. The pair bounced between 163.71 and 163.81 in this session, but it moved out of the range at about 9:00 pm ET. From the range, the pair weakened to 163.86 by about 9:50 pm, but it rebounded briefly, thereafter. However, of late, the yen has weakened again, taking the current values to around 163.9. Largely, after setting a new multi-year low by mid-May, the pair moved sideways between 162.18 and 164.28.
In late New York afternoon on Thursday, the Japanese yen ticked down against the pound, but the pair rebounded from 5:55 pm ET. Moving from 241.13, the pair collected as high as 240.86 at about 8:40 pm, but thereafter, it weakened again. Of late, the pair has been trading near 241.2. Largely, after registering a 4-month low around 241.68 on May 22nd, the pair has improved slightly.
The Japanese currency saw directionless trading against the Swiss franc during the initial hours in late New York trading on Thursday. However, by about 8:15 pm, the yen slipped from the range, and fetched as low as 99.41 at about 9:40 pm ET. Thereafter, the Japanese unit trended higher slightly, but has given back those gains, lately. Largely, the pair has given back its gains collected in the second week of May, towards the last week of the month.
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