As observed for several weeks, the underlying forces driving currency markets at present are biased toward US Dollar strength, Euro weakness and overall consolidation within the commodity linked currencies with underlying sentiment driving price action in the markets. These overall compounding factors have further encouraged profit-taking, boosting the safety-linked US currency, and alternative safe haven currencies such as the Japanese Yen and CHF.
The British Pound appears firmly tied to underlying trends in sentiment at present, with little by way of economic data to upset the relationship with speculators …

The US dollar is up sharply in early Wednesday (November 24th) morning currency trade following a strong unemployment report. The latest weekly report from the Labor Department for the week ending November 20th showed a seasonally adjusted total of 407,000 unemployment claims.
This much larger than expected drop of 34,000 claims from the previous week puts unemployment claims at their lowest weekly total since July of 2008.
Many analysts and investors are taking the news as a positive sign for the economy. However, some are quick to point out that the holiday …

EURO THREATENED OVER IRISH GOVERNMENT ELECTION LOSS
Ireland’s release of its four year fiscal plan seems to have done little to ease market concerns, with the euro remaining on the back foot versus the dollar and sterling. As well as the concerns about Ireland, the threat of similar problems in Portugal and Spain means the euro will likely stay under pressure in the near term. Ongoing tensions in Korea are also weighing as they benefit the safe haven dollar over other majors. Lows of $1.3284 versus the dollar were seen late …

Price action within the Forex markets yesterday proved indecisive during the opening bell in London, as global equities and the US Dollar, the benchmarks for their respective sides of the “risk on” vs. “risk off” argument remained unchanged. This however was soon to change, as the highly anticipated release of the US GDP results for the 3Q were released. US market participants reacted with the competing catalysts driving price action; which in the end clearly favoured renewed risk aversion. Stocks were heavily sold off and the Dollar was heavily favoured …

The news that Ireland has formally requested aid from the European Commission and the IMF has brought some stability to markets, with the euro extending gains in early morning trade and regional share prices rallying. The dollar/euro is pushing towards the $1.38, while sterling/euro has also seen solid gains since Friday on hopes that a deal would be done. The full details of the package have yet to be put in place but news reports this morning say that it could be €80-90 billion and will include money for the …

Oil prices have seen restricted upward mobility and gold prices have fallen in lieu of a stronger dollar the last two weeks. The greenback has climbed higher against most major currencies and on the whole after the initial reaction to the Fed’s $600 billion Treasury bond purchase.