Today is seemingly setting up as an “inside day” as there are no major forces causing either major risk-taking or risk-aversion. It really is interesting to watch how global markets can fluctuate between both themes on a daily basis, and my personal opinion is that there is no better time to be a trader in the currency market.
Overnight, Japan reported .4% grown for the quarter meeting analyst expectations but besting last quarter’s growth of .1%.
In Canada, the employment picture is back on track as they added more jobs than were expected, however the unemployment rate grew as more people entered the workforce.
In the UK, PPI figures increased at the slowest pace in nearly 6 months, increasing the speculation that the BOE can maintain accommodative monetary policy going forward.
In New Zealand, higher export prices because of increased demand has made the Kiwi the largest gainer this morning, as mild risk taking appears to be the theme to start the US trading session.
In the forex market:
Aussie (AUD): The Aussie is higher this morning, as mild risk appetite combined with Japanese yen weakness has provided the Aussie with a bid. In addition, reports of increased Chinese exports bode well for the Australian economy.
Kiwi (NZD): The Kiwi is the biggest gainer this morning as higher export prices boosted the terms of trade indicator, which was 3.8% higher than the previous quarter. Increased Chinese demand is also a factor.
Loonie (CAD): The Loonie is mixed despite the better than expected employment report this morning in what is likely a case of profit-taking. Canada added 35.8K jobs vs. an expectation of 30K, though the unemployment rte ticked higher to 8.1% as more people entered the workforce.
Euro (EUR): The Euro is mostly higher as fears are subsiding about a return of the debt crisis that plagued the common currency only months earlier. Industrial production figures were mixed, as France increased but Italy declined.
Pound (GBP): The Pound is mixed this morning as lower than expected PPI figures are likely to allow the BOE to maintain accommodative monetary policy going forward.
Dollar (USD): The Dollar is mostly lower, but showing strength against the Yen and Pound as individual weakness in those currencies is boosting the dollar. There is no major news for the Dollar today, so the market appears to be content to go into the weekend little changed.
Yen (JPY): The Yen is weaker this morning as GDP figures came in showing .4% growth in the last quarter, causing a nice rally in the Nikkei and subsequent Yen weakness as the inverse correlation held up. In addition, PM Kan increased the rhetoric surrounding possible Yen intervention, saying that he hopes other countries “don’t object” should they feel the need to intervene.
So today is seemingly a lazy day for the markets, which have been on a bit of a wild ride as of late. Renewed fears of the European debt crisis, as well as a slowing UK economy and Japanese yen weakness have kept investors on their toes.
So like the wounded and weary, a rest is welcome as the market is looking to regain strength. With no earth shattering news to sway market sentiment either way, investors appear to be content with current levels.
Every day that the market can dodge some doomsday-type news should be viewed as positive, as it is no secret that the global economy is slowing. Breaking the boom-bust cycle is important, as more realistic, sustained growth should be desired.
Though that won’t get politicians here in the US re-elected, so watch out!
To learn more about how you can take advantage of world events through the currency market, be sure to check out our currency trading courses!
To follow these events live with a free, real-time practice account, click here! Don’t miss out on the world’s fastest growing market!
?
Tags: account, AUD, Aussie, cad, course, currenc, currencies, currency, currency trading, dollar, economy, EUR, Euro, forex, free, fx, fxedu, gbp, Il, interest, jpy, market, news, nzd, practice, ssi, time, trade, USD, Yen