Forex: A down market typically means a stronger currency
This week was a week strange but interesting Forex. The book was incredibly light due to the end of summer festivities in the United States and Canada and Western Europe, but the flow of data and information has not ceased.
We have seen officials to declare the recession over, but later only a few hours, some sort of data that contradicts the idea. And we saw the dollar rebounded Getting around.
September the stock market is usually the worst month on an average of 3% of losses are recorded each year since 1929. While October is the month when "Crash" (just last year, the market fell 13% in October), falls are rare – so September is the month of hard.
One reason for this is that people come back from holiday and withdrawing their investments in market size and see what happened – a redistribution of portfolios as a broker is defined.
With Forex trading even if the goods: a market bottom usually indicates a stronger currency, and even if all this happens more often than not, this year 2009, we do not see this trend.
Concerns that investors are no longer the only company to do better next year, or that society is ready for an escape, the concern is based on government activities and influences the rate of FX in stock.
As currency is a reliable indicator of the strength of a country is economically, retailers have begun to translate this into their equity holdings.
Which companies are most affected by legislation or government agency under a new law or the bank will need money?
The dollar has fallen this month – in tandem with the U.S. equity markets. The question remains for Forex traders, that this trend will continue and if so, how far can it go?
The dollar fell broadly on Wednesday, in the foreign exchange market, after an informal statement of the data revealed higher than expected unemployment rate.
Employers in the U.S. private sector shed 298,000 jobs in August, according to the report of ADP payroll. Initially, the dollar rose on the feeling of risk aversion, however, continued fears the burden of increasing debt of the government with a very light volume both increase the dollar at the end of the trading session.
The Employment Report ADP is an early indicator of how the government official "non-farm payroll (NFP) report examined.
The report of the NFP is to leave Friday and includes public and private industries. Consensus on the street is that 225,000 jobs will be reported as lost, even with the private sector alone contributed close to 300,000, the NFP is likely to disappoint.
At 1100 GMT, the dollar fell. 42% for the euro to 1. 4282, falling. 9% for the Japanese yen to 92. 15, downward. 85% to the pound sterling to 1. 6286, downward. 05% for the Canadian dollar to 1. 1041, down 1. 2% for the Australian dollar A. 8357 up. 2% for kiwifruit. 6736 and down. 55% in Swiss francs to 1. 0594.
USD / CAD currency pair is a challenge: 1. 1100/20 area again on weak currencies and commodities sell-off of new oil. A close above this level is important for progression to perhaps 1. 1400 or more.
55-day moving average is up just over 1. 1100, as well, but the USD / CAD does not seem to have much of a habit of paying attention to this number.
If oil stays below $ 67 per barrel and action are a sour mood, it is difficult to see the couple to continue its ascent. Structurally, the attempt has failed to maintain new low of less than 1. 0800 has offset the recent historical trend downward, upward, but we have no confirmation yet. 1. 1120 + would be a first step.
