Concerns for Europe’s Economy Make Zloty Weaker

The Polish zloty fell today on the renewed concerns for the Europe’s fiscal condition and the ability to fight the budget deficits. For now the currency tries to regain its strength but encountered the resistance.

The Standard & Poor’s said that the downgrades of the credit rating most likely would continue as the deficits and the demographics put pressure on the finances. It looks like Ireland now added to the list of countries, which are causing strongest concerns.

A Disappointing U.S. Durable Goods Orders Report Could Add Further Weight Onto the Greenback and Lead Traders to Seek Safety

Durable goods orders in the world’s largest economy are forecasted to drop 1.0 percent in August after climbing 0.4 percent the month prior. These orders are expected to last more than three years, and reflect optimism in the economy. At the same time, the reading serves as an indicator regarding output to come. In this case, economists are forecasting that there was a lack of consumer confidence during the month of August.

Canada’s Dollar Drops on Lower Consumer Prices

The Canadian dollar has fallen today after the consumer prices unexpectedly decreased, spurring the speculations that the central bank would stop the interest rates increases when its policy makers will meet next month.

USD Traders Shift Focus to FOMC Rate Decision

The Federal Open Market Committee is expected to keep their benchmark interest rate unchanged at 0.25% as the recovery continues to face major hurdles. Last month, the committee said that rates are likely to remain “exceptionally low for an extended period.” This wording has been unchanged from the previous nine releases, and any change in language at tomorrow’s meeting will likely stir volatility in the FX markets.

Risk Appetite Wanes, Euro Weakens

The euro weakened today, after it previously jumped to the highest level in more than a month, as the concerns resurfaced that some European banks may experience significant losses because of the global economic crisis and on the worries for Ireland’s economy.

Euro Drops on Doubts in Strength of European Banks

The euro slid today on the speculation that the banks of the European Union would have hard time to raise the funds amid the signs of the slower economic growth in the region. For now, the currency rose somewhat, but still weaker than yesterday.

Euro Re-couples with Risk

EUR/USD sunk almost 200 pips overnight as concerns that European banks are at risk as they hold more potential toxic sovereign debt than reported in the recently performed stress tests. As Europeans rebel against austerity measures aimed at bringing unruly budget deficits under control, the path toward fiscal soundness has become thorny, increasing the potential for defaults.

Euro Rises on Good German Economic Outlook

EURO traded at the highest level in more than two weeks as the analysts predicted that the government reports would show that the German economic recovery is gaining momentum.

The factory orders in Germany grew 0.5% in July, following the 3.2% growth in the previous month according to the economists’ estimates. The experts also estimated that the industrial production rose 1 percent. The good economic forecasts damped the demand for the safety of the dollar.

Stable Economic Growth Makes South Korea’s Won Stronger

The South Korean has won appreciated today as the concerns for the economic growth eased, boosting the outlook for South Korea’s economy and increasing chances that the central bank will raise the interest rates.

The nation’s gross domestic product expanded 1.4% in the second quarter of 2010, almost matching the forecast value of 1.5%. The stable growth allowed the International Monetary Fund to raise the growth forecast to 6.1% for the current year. The favorable fundamentals also spurred the investors to bet that the Bank of Korea would increase the rates on the next meeting of its policy makers.

Forex Strategy Corner: Bollinger Bands Techniques for Trading

Bollinger Bands have been one of the most popular technical indicators across financial markets, and many forex traders use them regularly in their day-to-day trading. The key question to ask of any forex analysis technique is nonetheless clear: how effective is the Bollinger Bands indicator as a forex strategy? This article will take a closer look at one key Bollinger Band trading strategy on several forex pairs and explores one way to improve its effectiveness.

CAD Extends Decline, Economy Shows No Signs of Improvement

The Canadian dollar (CAD) extended its decline for the second day as the poor macroeconomic data continues to undermine the attractiveness of the currency to the global investors. This month can be the worst for the Canadian currency since June 2009.

Canada’s gross domestic product grew 0.2 percent in June, less than some analyst predicted. The real gross domestic product grew by 0.5 percent in the second quarter, after increasing by 1.4 percent in the first quarter. The reports also showed that the current account balance and the retail sales were worse than expected. The unfavorable reports decreased the chances that the central bank will increase the interest rates.