Forexperts Archives

Traders Lighten Up Long Dollar Positions Ahead of ECB Meeting

Although the European Central Bank is not going to meet until June 5, bullish Dollar traders were reluctant to add to their positions ahead of the meeting. Traders are expecting the ECB to keep rates at 4%, but they will be closely monitoring the comments after the meeting to see if there was any d... (Jun 02, 2008 6:16PM)

Dollar Gains Against Euro for Second Straight Month

Strong U.S. economic reports, lower crude oil prices, and hawkish comments from the Federal Reserve helped the U.S. Dollar gain versus the Euro for the second straight month. (May 30, 2008 6:35PM)

Hawkish Comments by Fed Sink Euro; Bond/Bund Spread Narrows

On Thursday, the U.S. government reported that the gross domestic product was stronger last quarter than initially estimated. This report helped spark an initial break in the EUR/USD. Tumbling crude oil prices later in the morning helped drive the Euro lower. (May 29, 2008 6:20PM)

EUR/USD Reversal Top Confirmed

The EUR/USD confirmed Tuesday's closing price reversal top with the break on Wednesday. The charts indicate a move to 1.5550 is likely before new buyers step in. (May 28, 2008 5:32PM)

Another Reversal Top in EUR/USD Sets Up Further Decline to 1.5550

The EUR/USD fell sharply lower on Tuesday as this pair received a double-dose of negative news. A combination of bearish factors today including weakening Euro Zone consumer confidence and better than expected U.S. new home sales triggered strong selling after the Euro failed to hold small gains ab... (May 27, 2008 6:40PM)

EUR/USD Could Not Confirm Reversal Top

The EUR/USD rallied on Friday because of another decline in U.S. Home Sales and the inability to break the crude oil market. Both of these factors epitomize what the Fed is facing in the short term: cut rates to stimulate the economy or hike rates to stem the inflation. (May 26, 2008 12:53AM)

Reversal Top in EUR/USD may Trigger Break to 1.5549

The EUR/USD fell on Thursday after oil prices eased substantially and traders increased bets that the Fed would most likely raise rates later in the year. (May 22, 2008 4:54PM)

Rate Hike by ECB Unlikely as German Confidence Rises

Speculators drove the Euro higher on speculation that the European Central Bank would not have to lower rates at its next meeting on June 5. A report citing an unexpected rise in German confidence kicked off a short covering and buying spree on Wednesday. (May 21, 2008 6:43PM)

Euro Moves Higher on Talk of a Rate Hike by ECB

Speculators drove the Euro higher on surging oil prices and talk that the ECB may raise interest rates once again to curb inflation. Just one day after the Dollar posted a strong gain against the Euro and looked as if it was ready to start a new leg up on this rally, traders sold in a big way forcin... (May 20, 2008 6:45PM)

EURUSD Falls on Better Than Expected U.S. Economic Report

U.S. Leading Indicators unexpectedly rose in April prompting traders to sell the EURUSD, which had just changed trend to up on May 16. Today's action erased some of the doubt about the U.S. economy raised last week due to poor economic numbers. (May 19, 2008 7:03PM)

EURUSD Turns the Trend Up on Surging Crude and Falling Consumer Confidence

Surging crude oil and falling consumer confidence helped drive the Dollar lower against the Euro. Traders are expressing concerns that the higher crude prices may trigger an economic slowdown. (May 16, 2008 6:55PM)

Weak U.S. Economic Data Still a Concern

Despite recent talk that the Fed may be ending its cycle of interest rate reductions, there are still concerns in the Forex community that the U.S. economy may not be robust enough to avoid a prolonged economic drawdown or in the worst case, a recession. (May 15, 2008 6:33PM)

Hans S. Nilsson

Ashraf Laidi

Darrell Jobman

James A. Hyerczyk

• Michael Woolfolk, economist at Bank of New York
• Thomson Financial News - "The dollar appears set for a period of renewed stability in 2008 as long as interest rate differentials and the US credit crisis do not deteriorate any further." Michael Woolfolk

• Katarzyna Zajdel-Kurowska, polish deputy finance minister
• Thomson Financial News - "The biggest threat for inflation next year remains fuel prices and rising global demand for agricultural produce. We can, however, assume that together with a likely fall in food prices in the second half of next year inflation will start to fall. It is clear that the recent rise in inflation is due chiefly to ri... Katarzyna Zajdel-Kurowska

• Robert Brusca, economist at FAO Economics
• Reuters - "This is still a big deficit even though we had some modest reduction. Some of that progress is due to the fact that imports have been restrained and the economy is weakening." Robert Brusca