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• Weekly Forex Market Commentary
  

  The US currency consolidated during the past week and the same should happen during the last week of August and ahead of the Labor Day holiday.  The geopolitical pressures have (officially) alleviated, but all eyes should remain on commodities.  The dollar remains overbought in the short term, but any corrective decline this week should be brief and shallow.  This is because most of the market missed buying dollars on July 22 and is waiting for the second chance.
   

• Weekly Forex Market Commentary
  

  The US currency marched higher during the past week in a stampede and even the yen fell prey, despite benefiting intermittently from liquidation of carry trades. The Eurozone, UK and Japanese economies having lagging the US economy is starting their decline and this places the dollar in a position of relative strength. Unless the commodities slow down their descent, the dollar seems primed for more gains.  
   

• Weekly Forex Market Commentary
  

  The US currency exploded higher last week and this confirms it put in a significant bottom. The US economy is in recession and the housing sector is in disarray, but the rest of the world is only starting to get the contagion and it will be ugly. Commodities have started to be liquidated and I believe there are more positions to be closed.  The dollar has much more to go and I suspect any weakness would provide opportunities to buy it on the cheap.
   

• Weekly Forex Market Commentary
  

  The US currency rallied further last week versus the European and commodity currencies as the market is starting to understand that economic and financial problems from the US are spreading hard and fast outside our country. Talk of decoupling is not a real option in today’s small world and the rest of the world has fewer tools than the US to deal these types of imbalance. The dollar should see strength this week as well.
   

• Weekly Forex Market Commentary
  

  The US currency ended the week higher, as soft data had already been priced in, and some decent data and earnings (read not as bad as expected) triggered profit taking on short positions. And a declining oil, which barely failed to reach $150/gallon, provided unwarranted optimism. The US economy is in a recession and there is no remedy on the horizon. The dollar should struggle higher for a little longer before the next big decline.
   

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• GFT Daily Market Commentary
  Forex Market Commentary for August 28, 2008 by Cornelius Luca

  GFT Daily Market Commentary

  
  The proximity of Labor Day weekend surely doesn’t make things easier in the currency markets. Nor did the half-baked measures at Fannie Mae. The dollar closed slightly lower against the euro and franc on Wednesday, but basically flat versus the pound and yen.  However, trading was quite volatile. The dollar lacks much direction, so expect more choppy trading for a couple of days. Only the German unemployment rate report is of interest, as the Nationswide housing price report should be negative.

  
  Euro/dollar

  
  The euro/dollar corrected into an inside range on Wednesday after falling to a near 6 ½-month low a day earlier. Again, following an early recovery, the pair should resume its decline. My model reversed its short position. Sideways to lower trading is likely.

  Initial resistance is now seen at 1.4780. The next good level is at 1.4800. A pivotal level is in place at 1.4910.

  Immediate support comes at 1.4710.  The next levels are 1.4665 and 1.4572. Below 1.4540, support comes at 1.4485 and 1.4455.

  Oscillators are mixed.

  
  NEAR-TERM: Mixed with downside risk
  MEDIUM-TERM: Bearish
  LONG-TERM: Mixed

  Dollar/yen

  
  Dollar/yen had an outside day ahead of month end, but closed virtually unchanged on Wednesday. Unless the 110.00 area gives way, the pair will retest the 108.65 area. My model is (barely) short. 
   
  Immediate resistance is still in place at 110.00. Strong resistance follows at 110.35 from a 50-point pivot, which targets 109.85 and 110.85. Distant resistance is 111.60 from another 50-point pivot, which targets 112.10 and 111.10.
   
  Strong support remains at 109.15 from a 50-point pivot, which targets 109.65 and 108.65.

  Oscillators are mixed.

  
  NEAR-TERM: Mixed
  MEDIUM-TERM: Bullish  
  LONG-TERM: Mixed

  Sterling/dollar

  
  Sterling/dollar sank to a new over two-year low on Wednesday and the selling pressure should continue.

  Initial support is at 1.8286. This is followed by 1.8245.  Below 1.8207, cable has support at 1.8127. 
   
  Immediate resistance now comes at 1.8437.  This is followed by 1.8565. The next strong resistance remains 1.8620.

  Oscillators are falling.

  
  NEAR-TERM: Mixed with downside risk
  MEDIUM-TERM: Bearish 
  LONG-TERM: Mixed

  Dollar/Swiss franc

  
  Dollar/Swiss closed marginally lower after alternating up and down days for eight days.  The medium-term outlook remains positive, but trading should remain choppy for a couple of days.

  Initial resistance is at 1.1025. The next levels come at 1.1054 and 1.1086. Strong resistance follows at 1.1185.

  The pair still sees immediate support at 1.0955.  This is followed by the area between 1.0925 and 1.0915. A pivot low remains at 1.0844, but this should not be challenged.

  Oscillators are rising.

   
  NEAR-TERM: Mixed to slightly bullish
  MEDIUM-TERM: Bullish  
  LONG-TERM: Mixed

  
   

• Forex Trading Terms: Pip
  Understanding the pip in currency tradingOne of the forex trading terms you will come across a lot is "pip." It is important to understand what this term means, since it is one of the more important when interpreting currency market movements.
  
  Pip
  
  Pip stands for "percentage in point." This is the smallest amount a currency can move in the market. With most currencies, the pip change is seen in the fourth number of the quote. If euro/dollar is 1.4785 and changes to 1.4786, it has made a change of one pip.
  
  The dollar/yen currency pair is the one where the quote is represented by two decimal places rather than four.
  

  See Also

  • Forex Trading Terms
    Learn about currency pairs
  
   
• U.S. Dollar Forex Trading Strategy
  Fed rate to remain on holdU.S. dollar forex trading strategy should consider that the Fed is likely to keep the rate on hold for now. Indeed, while this move may help the greenback some in currency trading, many traders are a little dismayed with disagreement among members of the committee.
  
  FX Street reports on what members of the Fed do agree on:
  
  
  Disagreement among the members continues to be very evident. That said, the general view appeared to be that growth risks increased over the intermeeting period, as financial conditions deteriorated and signs became evident that consumer spending and export demand was slowing amid a continued weakening of the labour market.

  See Also

  • Greenback in Currency Trading
    Forex trading with world currencies
  
   
• Forex Trading Forecast: Asian Currencies
  Asian currencies to drop in FX tradingThe forex trading forecast calls for Asian currencies to falter in coming months. Most of the currencies expected to drop in FX trading are in emerging markets that are very dependent on U.S. dollar sentiment.
  
  As the U.S. dollar firms up in currency trading, many emerging market currencies will find that investors want to shift their asset allocation so that they have dollars, rather than local currencies. Bloomberg reports on Asian currencies in FX trading:
  
  
  ``Asian assets, including currencies, will take a major hit in the period ahead as the world downshifts,'' Stephen Jen, the London-based head of currency research at Morgan Stanley, wrote in a note yesterday.

  See Also

  • Forex Trading with Asian Currencies
    World currencies in FX trading
  
   
• Euro Gains in Forex Trading
  Currency trading with the euroThe euro is rebounding in forex trading right now, rallying mainly on the news that oil prices are rising. Even though Gustav is "only" a tropical storm, there are concerns that it will affect oil refineries in the Gulf of Mexico. As these prices rise, so too does the euro in forex trading.
  
  However, in currency trading the euro rebound may be short-lived, since the euro-zone economy is dealing with some of its own issues, and may not be able to maintain superiority over the U.S. dollar.
  

  See Also

  • Euro in Forex Trading
    Currency trading on the FX market
  
   
• Canadian Dollar Gains in Forex Trading
  Higher oil, declining dollar boost loonie in currency tradingThe Canadian dollar is on the rise in forex trading on the currency market today. One of the main helps is a rise in oil prices -- Canada's main export -- as Gustav threatens offshore refineries.
  
  Weakness from the U.S. dollar is also boosting the loonie in currency trading. Bloomberg reports on the Canadian dollar in forex trading:
  
  
  ``This is more just a big dollar sell-off,'' said Jonathan Gencher, director of currency sales in Toronto at BMO Capital Markets. ``Canada is just being tagged along.''
  
  
  Many forex analysts expect the loonie to fall in currency trading by the end of next year.
  
  
  

  See Also

  • Loonie Currency Trading
    Forex trading on the currency market
  
   

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