|Forex News Center|||||Forex News Archive||||
Friday, 26 Dec 2008
Forex Market Gets Ready For 2009
With American, European, and Australian markets closed yesterday for Christmas, trading is expected to be very thin today. The trading desks that will operate in the U.S. today will be working on a skeleton staff.
The EUR/USD may range trade near the 1.4000, and traders should be weary of any major market moves.
However opportunities exist to profit in these market conditions.
As investors commence year-end rebalancing of their portfolios and asset allocation, any large trades could significantly move the market and produce short term price drops due to a limited amount of liquidity in the market. Traders should be mindful of short term price drops and spikes, as opportunities to profit from these quick price movements are available.
Heading into the New Year, the EUR/USD has regained some of the ground it lost during the financial crisis. The most recent gains can be attributed to the glut of negative indicators released from the U.S. The indicators show a deepening recession in the U.S. economy. Two months ago, the focus was on the slowing Euro-Zone economy that led to a sharp drop in the value of the pair. As the end of the 4th quarter approaches, traders will be looking for signs of an economic recovery on both continents to determine the direction of the currency.
The JPY retained its incredible strength against most of the major currencies this week. If some of you haven't noticed, the JPY gained over 2,000 points against the USD, over 3,500 points against the EUR, and over 7,000 points against the GBP, all in less than 4 months! If you asked yourself this year, where and when you could gain huge profits, probably even a fortune, there's your answer. Let's hope you'll make the proper conclusions for the New Year that we are all about to embark on.
Crude Oil -
The main question traders should ask themselves in the next few days is if Crude Oil has reached its bottom, or is it still possible that oil prices will continue to depreciate? The answer is that currently oil prices seem to be stuck on a bearish voyage that does not look to be coming to a stop anytime soon. ForexYard's prediction is that oil prices might reach $30/barrel.
The Wild Card
|16:00||USD||IBD/TIPP Economic Optimism||47.5||48.3||-|
|23:30||AUD||AIG Services Index||49.9||-||-|
|01:01||GBP||BRC Shop Price Index||-1.3%||-||-|
|09:15||EUR||Spanish Services PMI||56.7||56.9||-|
|09:45||EUR||Italian Services PMI||51.2||51.8||-|
|10:00||EUR||Final Services PMI||-||53.9||-|