EURO Steadied 14-Months Subside Vs US Dollar

EURO falls down by 0.1 percent against the US dollar at the rate of $ 1.2604. In early times it hits at $ 1.2563, the smallest range in the week and almost half a percent than the previous week's 14 month subside of $ 1.2520.

European stocks gains makes the euro fell by 0.6 percent against Yen. According to the report given by EBS the euro is one of the single currency that goes subsides against 1.3997 Swiss francs. Experts are saying that the global factors will dominate the currency pair EUR/USD, despite the fact that Reserve bank Of Australia have announced that it is increasing the interest rate for showing worries over the outlook of inflation and a clench over the labor market. It is expected from the RBA to halt on their diversion for the coming next few months.

US Dollars shows an upgrading of 0.1 percent against the world's major currencies. Although it fells against the Yen by 0.4 percent. Sterling was the strong currency of the last week, but it surprisingly falls against the dollar by 0.3 percent in this mid of week. On Friday the euro snugged near 14 month subsides Vs US dollar make the investors onto worries because already their are ups and downs in the Forex currency market. the poor performance currency of the market this year is euro. The investors are so much worried about the fiscal outlook of euro zone that is hampering the growth of the Europe. European Monetary ministers are trying their best to overcome the recessionary condition, the government is putting efforts in cutting their fiscal spending. Regardless of these facts, the investors are still wondering how long these efforts will sustain.

Market Experts are given their view about the euro currency trading that if the euro currency breaks below the range of $1.25, then halt the loss selling otherwise it will reach upto the $ 1.2330, it is the lowest range of the year 2008. EUR/JPY currency reaches up to the 116.50 Yen after touching the low of 116 Yen below in the Asian trade market. Traders of the Forex market are saying that the euro gains are limited and it partly depends upon the Japanese Yen that is giving support to the euro zone countries. The world's second bond fund that is known as Kokusai Asset Management's Global Sovereign Fund is ready to support the euro by cutting its exposure to 4.8 percent points, although if the euro zone financial crisis continues to their low then the percentage will be 29.6 percent as it is estimated by the market experts at the end of May 2010.

USD/JPY stood at 92.90 Yen, it is seen that it goes up by 0.2 percent from the late New York trade in the Forex market. Where as the USD/GBP goes up by 0.1 percent since Sterling currency is static after a day loss because of the impact of Britain's public finances which undetermines it. On Thursday the market gots a hit of UK trade deficit that is seen high up to more than expected.

Reports from forex trading platform as usual comprises of sliding motion, so traders need to be little more cautious because even though policy makers and officials had tried from head to toe but yet the debt issues do not seem to cease at this level.

Lets have technical viewpoint about the currency pair of USD/JPY trading at the level of 92.54 that opened at the session with 92.79 surging high with the 93.55 level and the lower trade level of 92.49 and the forex online session closed at the trade level of 92.73.

USD/JPY made to swelled up high at yesterday’s trade session but later snipped down and started trading descending because of the sentiments of the Interbank that reached closer to -32%. On Thursday, the currency pair of USD/JPY declined from the level of 93.55 to 92.59 and closed the trade session at 92.73.

With no influential events in today’s trading session at Japan, so JPY is having the trading range in between 92.51 to 92.00 having down-trending at the trading platform.

Canadian Dollar Shows Mild Strength Versus Majors,

The loonie showed mild strength against its major counterparts on Friday in New York, most notably reaching a fresh weekly high against the euro.

Crude oil dropped on Friday as the ongoing problems in the U.S. financial sector could continue to cause traders to feel energy demand could be dragged lower. Light sweet crude for November delivery moved to $105.67, down $2.35 on the session. Prices hit as low as $104.25 in overnight deals.

The Canadian dollar experienced choppy trading with the U.S. dollar on Friday. The pair bounced between 1.0372 and 1.0314 throughout the day, staying just below Thursday`s multi-month high.

Investors weighed a slew of reports showing U.S. gross domestic product and personal consumption fell unexpectedly in the second quarter, while a University of Michigan survey showed consumer confidence dropped more than expected in September.

The loonie climbed to a fresh weekly high versus the euro on Friday. The Canadian dollar advanced to 1.5071 just after 6:00 am ET, up from an early morning low of 1.5164. Traders pondered a report showing French gross domestic product contracted at an expected rate in the second quarter.

FOMC Cuts by 50-bp, Signals Further Easing

He Federal Reserve cut its benchmark lending rate by 50-basis points to 1% by unanimous vote and also lowered its discount rate by 50-basis points to 1.25%. The currency markets were heavily pricing in the aggressive move with the greenback tumbling against the euro and sterling heading into the decision. The dollar fell by over 700-pips versus the pound from 1.5765 to 1.6473 while dropping from 1.2583 to 1.2990 against the euro.

In the accompanying FOMC policy statement, the Fed delivered a somber assessment of the economy saying “the pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures”. The statement also paved the way for additional policy easing at the next meeting in December, revealing expectations for inflation to continue to moderate over the coming quarters. The Fed said “the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit”. Accordingly, we look for the FOMC to slash rates again in December with a 25-basis point cut bring the year-end benchmark lending rate to 0.75%.

The economic reports released earlier in the session saw headline durable goods orders for September rise by 0.8% reversing from a steep 4.8% decline a month earlier. The excluding transportations figure improved to -1.1% from -3.3% previously. Several key reports are slated for release in the Thursday session, with weekly jobless claims, Q3 advanced GDP, and Q3 core PCE. Weekly jobless claims are seen largely unchanged at 475k, from 478k a week earlier. The advanced Q3 GDP reading is estimated to post a 0.5% decline compared with a 2.8 gain previously.

U.S. Dollar Holds Steady but Further Weakening Expected

In Asian trading today, the U.S. Dollar held steady versus the Japanese Yen, but the market is merely waiting for the greenback to further soften once the Federal Reserve Bank takes additional quantitative easing measures, as most investors anticipate they will.

November 2nd and 3rd will be the next scheduled meeting of the Fed’s Open Market Committee; speculation that additional steps will be taken by the central bankers in an effort to spur on the sluggish economy is practically a foregone conclusion. As reported at 2:50 p.m. (JST) in Tokyo, the U.S. Dollar held at 83.17 Yen, just off Tuesday’s late trading in New York of 83.18 Yen.

Investors will use this week’s release of payroll data to help gauge any potential movements by the Fed. Economists are predicting that non-farms payroll data will show an increase in new jobs by 20,000; in August, approximately 10,000 jobs were shed. Should the forecast prove incorrect, expect that the U.S.

Dollar will be more aggressively sold, with a target of 82.90 Yen, nearing the level at which the Japanese Ministry of Finance intervened. Whether or not Japan will intervene again remains to be seen, as many investors feel certain that it would not be any time soon, given the recent quantitative easing measures taken by the Bank of Japan.