Forex News

The Canadian currency declined today versus most of the 16 main traded currencies after stocks and commodities had their rallies halted as risk appetite eased among traders globally, forcing commodity linked currencies down.The Canadian dollar together with its Australian counterpart, both considered commodity linked currencies, lost versus the U.S. dollar as this week’s crude oil rally was halted today as risk appetite declined after several days pushing commodities rates and equities up globally. In the intraday comparison one of the few currencies that didn’t manage to pare the loonie’s gains was the Japanese yen, as a shift in the nation’s finance minister position has turned traders to become slightly skeptical towards the Japanese currency outlook.

A report published today indicating fewer-than-expected new jobless claims applications last week allowed the dollar to gain versus the euro and several other currencies as improving employment data is a key-evidence indicating the U.S. economic recovery expected for 2010.A positive sentiment towards the U.S. employment conditions provided support for the greenback to touch the highest level in four months versus the yen as traders expect a payrolls report tomorrow to show a decrease in job losses, after today’s weekly jobless claims report also came with positive figures. The greenback also pared losses versus commodity linked currencies like the Aussie and the Canadian dollar, which posted several days of advance as the crude oil rates rose on expectations demand will rise in 2010, favoring also riskier assets during this week so far.Analysts consider the employment data as extremely relevant for indicating the U.S.

The Australian currency touched the highest level in 2 years versus the euro as commodities rates are fueling the Aussie’s rally, which also gained considerably versus the greenback during today’s session.The Aussie advanced sharply versus the euro, yen and its U.S. counterpart as estimates that a global economic recovery will continue raise rates for the nation’s commodities, helping the Australian dollar to outperform most of the 16 main traded currencies as it happened in 2009.EUR/AUD bottomed at 1.5660 as of 21:33 GMT from a previous reading of 1.5761 yesterday.If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

After December’s Fed meeting minutes went public today, the U.S. dollar declined versus multiple currencies, as policy makers discussed extending economic stimulus to revive the economy if necessary, impacting negatively the greenback’s outlook.The content of a Federal Reserve meeting held in December and published surprised traders and analysts as extending asset purchase programs were among the topics, according to policy makers, if the economy weakens. The U.S. dollar declined versus the euro and most of the main traded currencies as much of its strength has been backed by speculations suggesting the opposite, lifting stimulus and raising interest rates and the economy surges.EUR/USD traded at 1.4412 as of 21:06 GMT from as long as 1.4280 earlier today.If you want to comment on the U.S.

The Canadian dollar continued to advance today versus its U.S. counterpart as demand for commodities are still on the rise, favoring the loonie which is one of the currencies with the highest correlation with commodities charts, specially the crude oil, one of Canada’s chief exports.The year of 2010 started with a very positive scenario for the Canadian currency which gained today before an employment report to be released this week, which, according to forecasts will bring optimistic figures, boosting the loonie’s appeal even higher as the crude oil is also providing support for the currency to remain bullish in foreign-exchange markets.

The yen declined today versus virtually all of the 16 main traded currencies as investors opted for higher-yielding currencies betting on the global economic recovery for 2010, abandoning yen priced assets after Japan’s Finance Minister Hirohisa Fujii resigned today.The yen posted the sharpest losses today versus commodities linked currencies like the Australian dollar, as demand for metallic commodities has been rising since the beginning of the week. The Japanese currency, known for its safer profile, has been less attractive in the beginning of 2010 as most traders expect an economic recovery in a worldwide scale, which is fueling rallies in both equities and commodities markets, consequently bringing investors to currencies linked to these fluctuations, as the Canadian dollar, which also gained significantly versus the yen and continues to advance versus its U.S.

The Mexican peso is benefiting from the U.S. economic outlook for 2010, as Mexico has the U.S. as the main destination for its exports, both raw and manufactured, and an accelerated growth of its neighbor is helping Mexico’s currency to gain in foreign-exchange markets.The peso continued to profit today from a better confidence towards its main trading partner, the U.S., as well as for increased crude oil rates, since the Latin American nation is one of the main oil suppliers for the U.S. together with Canada, helping the peso and the loonie to trade high in the beginning of 2010.USD/MXN traded at 12.8190 as of 20:13 GMT from an opening rate of 12.8750.If you want to comment on the Mexican peso’s recent action or have any questions regarding this currency, please, feel free to reply below.