G3 Forex

The euro and British pound were finally able to make significant gains against the dollar, after a boost from global economic data. It seems that many forex trading investors are no longer in their risk aversion mode, as some have confidently decided to invest in other major currencies. The euro rose against the dollar after news came out that Chinese Premier Wen Jiabao will help boost investor confidence on the euro and the Euro zone economy, in general. As long as the euro doesn’t drop from the 1.2800 zone, a bullish momentum is expected and a long position is encouraged. In the end, the EUR/USD pair traded at a high of 1.2855 and 1.2662.

The British pound also rallied versus the dollar after the ADP Employer Services report in August came out better than expected. An optimistic outlook for the global economy prompted investors to buy other assets, such as the British currency, other than the dollar. Because of the downward trend of the pound starting August, the momentum is still bearish. The GBP/USD traded at low of 1.5336 and a high of 1.5491.

After keeping a strong rally, the Japanese yen now dropped against most forex majors. This is the effect of better manufacturing data in the US and China, encouraging investors to invest in stocks, commodities, and other assets with better yields. As such, the momentum for the USD/JPY pair is bearish. The USD/JPY marked a low of 83.66 and a high of 84.66.

The British pound recorded new lows this month after breaking the 1.54 level. With many forex trading investors looking for a safer currency to trade with, the British pound failed to gain momentum and weakened against the dollar. It also didn’t help that the Net Lending to individuals came out 0.4B short than the 0.7B forecast. In the end, the GBP forex pair traded at a low of 1.5325 and a high of 1.5472.

The euro only managed a small gain against the dollar and bounced back almost near the support level. The Preliminary CPI remained the same as the 1.6% forecast. From -19k expected outcome, the German Unemployment Change tumbled to -17k. On September 1 trading day, the EUR/USD traded between 1.2625 and 1.2742.

The US dollar posted gains against many forex majors including the Canadian dollar. The USD/CAD traded at a low of 1.0573 and a high of 1.0671. Meanwhile, the Japanese yen rose against the dollar, as the USD/JPY ended up with a low of 83.80 and a high of 84.65.

After experiencing a rise against the dollar during the last three forex trading days, the euro went down and traded well below the 1.27 level. If the pair continues to push below the support level of 1.2670, it will continue to go down. The EUR/USD forex pair exchanged at a high of 1.2771 and a low of 1.2633. The German Unemployment Change is anticipated at -19k against the prior -20k. The Unemployment Rate is anticipated to remain the same at 10%. As for the Preliminary CPI, it is expected to go down from the prior 1.7% to 1.6%.

The pound also posted a decline against the dollar as investors favored risk aversion tactics by going for the US dollar, with UK banks closed. The GBP/USD pair might continue to experience a decline if it trades below the support level of 1.5480. The Net lending to individuals is anticipated at 0.7B against the prior 0.6B. The GBP/USD pair exchanged at a high of 1.5574 and a low of 1.5452.

Martin Weal, policy maker for the Bank of England, announced that the United Kingdom is in threat of falling into a second recession. When the London based Times and numerous other reports came out about Weal’s statement, forex trading investors faced some of their worst fears and the pound fell against the dollar. The GBP/USD pair traded at a low of 1.5372
and a high of 1.5505.

In the Euro zone, indexes and commodities weakened by quite large margins, causing investors to favor more stable currencies such as the dollar and the yen. The EUR/USD pair traded at a low of 1.2587 and a high of 1.2719.

In Japan, the yen hit a 15-year high against the dollar, boosted by positive trade balance data. The USD/JPY pair traded at a low of 83.59 and a high of 85.15.

The US dollar was able to gain against most majors as existing home sales data fell to a 15-year low. NASDAQ and Dow Jones both weakened along with crude oil, which closed at $71.36 per barrel.
Gold was able to gain and close at $1,233.4 per ounce.

The euro has been struggling over the past weeks. Forex trading investors are veering away from the risky currency as a flurry of bad economic data continues to fuel worries over the region’s recovery. On August 24th, the euro faced a near six-week low because of worse-than-expected data in both German and European Manufacturing PMI. German Manufacturing PMI sat at 58.2 instead of the 60.9 forecast. European Manufacturing PMI came out at 55.0, 1.3 lower than expected. The EUR/USD pair traded at a low of 1.2647 and a high of 1.2729.

The pound continues on its downward trend with the GBP/USD pair trading at a low of 1.5499 and a high of 1.5619. It almost hit a four-week low for the trading day. The dollar was able to gain against most of the majors as it got a major boost from risk aversion. Following the weak global economic data, investors to the Japanese yen, prompting its gains against major currencies. The USD/JPY traded between 85.09 and 85.64.