South Korean Won Slids Deep

The South Korean won fell sharply against the U.S. dollar this week and reached its monthly low against the USD today despite the very weak dollar’s positions and the bullish trend in the Chinese yuan, which is the one of the dominating Asian currencies.

The South Korean government officials are responsible for the strong pledges to support the weakening of the national currency to narrow the current account deficit, which has reached dangerous levels recently.

The Strategy and Finance Minister, Kang Man-soo, stated that the current account balance is one of the primary objective of the monetary policymaking. He stands as a strong supporter for the won’s depreciating.

The won pushing from the government’s side is accompanied with an elevated demand for the U.S. dollar, as the companies need to buy the more expensive oil and other commodities.

Yesterday Soгер Korean won closed at 982.19 per U.S. dollar, today USD/KRW reached 1000.60 and is trading at 998.05 as of 9:49 GMT.

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Yen Weakening against Euro, Pound

The Japanese yen continued its fall against the high yielding currencies today, especially against a very strong bullish euro, and reached 3-month minimum value against it, as the stock market rallies spurred carry trade popularity on Forex.

The yen dropped also against the New Zealand and Australian dollars because of their high interest rate, which makes them the perfect counterparts for the so called carry trade versus the Japanese yen.

In carry trade Forex traders sell low interest currencies for high interest one in order to gain on the overnight rate difference. Carry trade has been becoming less popular since the Autumn 2007, when the subprime lending crisis in U.S. increased the global financial volatility. But these days, with the global stock markets looking more and more stable, carry trade may experience its second birth in this decade.

EUR/JPY reached 162.82 level today — the highest rate since the 2nd of January. GBP/JPY didn’t break any significant records today, but this currency pair reached its weekly high level at 201.46.

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EUR/USD Comes Closer to 1.6000

The U.S. dollar fell down to another historical minimum level against the euro today, as the strong technical resistance has been breached and the fundamental economic statistics in U.S. has failed to keep the USD up on the Forex market.

Apart from the bad data from the U.S. housing sector and the commercial crude oil inventories, additional fundamental pressure was applied on the dollar from the Eurozone CPI report today. Consumer prices grew 3.6% (year-to-year) in March there, eliminating the chances for the soon interest rate cut by the ECB.

From the viewpoint of the technical analysts, the current situation with EUR/USD on Forex isn’t surprising too. The euro tried to break the major support level around 1.5910 three times before today. And after it finally did it today, the currency pair soared to the new absolute maximum at 1.5968.

As of 15:48 GMT EUR/USD is trading near 1.5953 and is ready to climb to 1.6000. Thursday will be last day this week with the important U.S. economic releases, so it will be a very important day for the Forex traders, as it will probably show the strength of the current bullish trend on EUR/USD.

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ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

Inflation Watch

Usd lost ground in Asian Session after the greenback rallied on the back of stronger empire manufacturing survey. Speculation has been growing all morning that US CPI will print higher than market expectations. however it was the German inflation figures which stole the show and stayed elevated giving the Eur a swift bounce. EurUsd surged from 1.5800 to 1.5845 and GbpUsd jumped from 1.9620 to 1.9888. Additional European inflation figures should keep the Usd pinned until mid session and as the market adjusts to the incoming US data. Despite the RBA minutes which showed that the Central bank is clearly in a neutral bias the Aud was able to gain ground on both the Usd and Jpy. While the Aud is poised to experience weakness in the mid term, currently commodity prices (crude $114.00brl), increased risk appetite and higher yields will keep Aud supported (however slightly less against the NZD which perhaps has stronger underlying fundamentals). Note, Westpac index was slightly higher than the revised figures indicating the growth is moderating at a slower rate than markets have expected. Markets will be very critical today of European CPI figures given the collapse of the German ZEW yesterday. The Eur strength rests squarely on interest rate differentials. Furthermore, Germany's concerns over the financial markets and lasting strength of the Eur has eroded confidence ; indicating eventually that there could be spillover into the real economy and response from the ECB. However, we currently have the first ECB rate cute scheduled for Sept and the minor dip in economic growth figures will not drastically change Trichet's mind - that is unless inflation ratechanges course. Yesterday PPI figures will keep the Fed diligent and rate expectations influx. Todays CPI will be important and will be covered in depth in the European report.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

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Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

USD Is Stronger Today

Usd was marginally stronger in Asian session however markets continued to discounted the G7 communiqué and stronger US Retail Sales. Asian equity markets continue to trade in the green and European equity futures look to open above fair value. A good sign for growing risk appetite and carry trades. ECB's Mersch commented yesterday that the ECB doesn't have much room to cut rates this year. Mercsch's statement was unexpectedly hawkish in comparison to Trichet increased emphasis on growth risks last week. This punctuates the fact that the ECB is still very much committed to price stability ahead of growth concerns. We expect the Eur to stay supported in the near term and will be looking for a test of 1.5910. In Europe markets will be focused on the German Zew survey which should provide additional evidence that financial market sentiment is improving. The DAX has been performing relatively well since March as economic news encouraged the Eur. Howeve, while its level is still elevated it has not appreciated further. In the UK today's highlight will be the release of the CPI and RPI figures. We expected both figures to creep up further which will complicate the BoEs dilemma further. Market will very much be poised to trade depending which way inflation is heading and how subsequent effect on interest rate will be affected. In the US Empire State index and NAHB will be the day's final focus. Both looking to continue downwards at the fundamentals in the US have not marketable improved.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

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Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

EUR/GBP Reaches New Absolute Maximum

Great Britain pound fell down to a new absolute minimum level against the euro today as the fresh economic data from U.K. signaled that the output growth will probably slow down significantly.

The survey by the Royal Institution of Chartered Surveyors showed that more than at any time since 1978 (the year when they started to collect this data) of its members are reporting lower prices.

The British Retail Consortium also reported that the retail sales in U.K. decreased in March by 1.6% — for the first time in two years, signaling that a weakness in the consumer sector of the economy is accompanying the housing market slump.

EUR/GBP rose from 0.8010 to 0.8041 as of 9:02 GMT today on Forex. Its daily maximum was reached at 0.8063 before retracing to its current rate.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

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Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

Chile to Buy U.S. Dollars to Weaken Peso

The Central Bank of Chile will be buying the U.S. dollars in 2008 in order to stimulate the economy by the weaker national currency.

This year, starting April 14 Chile’s central bank will be buying $50 million every day on the Forex market to increase the overal country’s currency reserves from current $18 billion to $26 billion.

This step is rather controversial as the weakening of the peso will spur the consumer prices, while the inflation in Chile is already at a highest high level since 1996. CPI was at 8.4% in March (year-to-year) with the central bank’s target value between 2% and 4%.

On the other hand, weaker peso will bust the competitiveness of the exporting companies, increasing the economy output growth. Chile is a very export-orientated country with a large part of copper in the national export. Copper is sold for U.S. dollars and, with a cheaper peso, costs of production will remain low.

Although, the dollar purchasing process probably won’t affect the U.S. dollar rate against the other currencies, as it will be performed rather slowly, without sharp interventions, it may create some additional demand that will keep dollar from the fast falls during the volatile sessions.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

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Dollar Retreats from Opening Gap Gain

The U.S. dollar has retreated from its impressive gain on this week opening on the Forex market and is now trading inside its usual recent daily bearish trend against the euro and the Japanese yen.

The G7 meeting’s officials noted the global situation with currency rates volatility and the necessity of the actions against the fast depreciation of some currencies and the fast appreciation of the other currencies. The presence of the currencies concern in the meeting conclusion spurred traders’ belief that the dollar may change its declining behavior on the currency market.

The week opened with a significant gap in the dollar’s favor on the EUR/USD currency pair. While Friday ended at 1.5807 for EUR/USD, today the pair opened at 1.5704 — a 0.65% gap. The only reason for such a fast and momentary shift in the trend was the G7 mentioning of the weak dollar danger.

Nevertheless, almost immediately after the trade session opening, the dollar bears started to prevail and the EUR/USD regained almost a full gap loss during the first 10 hours of trading, confirming a present long-term anti-dollar trend.

As of 8:58 GMT EUR/USD was trading at 1.5783 — about 0.5% above its opening level.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

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Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

Chinese Yuan Closes Below 7 per Dollar

The Chinese yuan ended the domestic OTC trading session today below 7 yuan per U.S. dollar level — for the first time since the end of the peg to dollar in 2005.

After USD/CNY closed at 7.0016 yesterday, the exchange rate of the Chinese currency went up today and traded in the 6.9930-6.9907 boundaries on the OTC Forex market.

Since November 2007, China’s government is working to appreciate the yuan to keep down the rising national inflation.

The People’s Bank of China set the central parity rate for the yuan at 6.9920 today against 7.0025 yesterday.

That means a major break through the important psychological barrier for the dollar-yuan rate, which can open a way for the further possible depreciation of the U.S. dollar versus the Chinese currency. And the lower USD/CNY rate is very important not only to the U.S. exporting companies, but for the general health of the U.S. economy that can benefit from the lower international trade balance deficit.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

ForexGen Presents Fundamental Headlines

• USDNZD – New Zealand retail sales fell 0.7% as rising food and energy costs sapped consumer spending power. The economy is slowing faster than policy makers had expected, when they raised rates to record levels, leading to calls for future rate cuts. For more news and resources, visit our New Zealand Dollar Currency Room. • GBPUSD – Prices at the factory gate rose 0.9% in March bringing the year-over year level to 6.2% -the highest since 1991. Discouraging for policy makers is prices rose in all ten measured categories led by energy. Therefore, The BoE may be hard pressed to continue cutting rates after their recent quarter point hike, unless growth levels continue to fall. Discuss the topic and your trade ideas in the GBP/USD Forum. • EURUSD – Eurozone industrial production exceeded expectations for another month as output increased 0.3% in March against expectations of 0.2%. The improvement underlines the ECB’s contention that the country can withstand the U.S. downturn without lowering their benchmark rate. In fact , council member Yves Mersch’s recently commented that there isn’t any room for the central bank to cut rates this year with inflation expected to remain above the 2% threshold into 2009. Discuss the topic and your trade ideas in the EUR/USD Forum.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

Is the Dollar’s Recovery Here to Stay?

The US dollar hit a record low against the Euro this morning and came within striking distance of 100 against the Japanese Yen. However the new round of selling did not last long as the dollar quickly recovered its losses. US economic data was weak with the trade deficit increasing more than expected. Although the recent weakness of the US dollar led many people to believe that the trade deficit would narrow, we warned in yesterday’s Daily Fundamentals that the deficit could expand because of the deterioration in manufacturing ISM. Jobless claims improved but the Easter Calendar effect makes the number distorting, particularly since continuing claims remain at very high levels. Even US Treasury Secretary Paulson admitted that the economy has turned down sharply. Unfortunately there is no concrete explanation for the bounce in the US dollar other than the fact that stocks are higher, commodity prices are lower and currency traders do not seem to be satisfied with Trichet’s comments. Whether this rally will continue remains to be seen. Fundamentally, the US dollar should weaken further because retail sales, which are due on Monday, should contract for another month. However fundamentals do not seem to be the driving force behind the US dollar today as technicals and sentiment dominate. The triple top in the EUR/USD is looking particularly ugly and reminds us of the currency pair’s trading pattern between November and February, when it took the fourth test of 1.4968, the prior and 3 months before the currency pair managed to break 1.50. Therefore even though we still believe that the EUR/USD will break 1.60, a further correction before that happens would not be out of the ordinary. In fact, we expect import prices and the University of Michigan consumer confidence reports to be dollar positive because of the improvements in the weekly ABC consumer confidence reports and the sharp rise in commodity prices. As indicated by the leading story in today’s Wall Street Journal, inflation around the world is set to reach a decade high.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

Market Today With ForexGen

After gapping down more than 100 points on Sunday night following the change in the G7 Statement the EURUSD erased most of its losses on the back of some bargain hunting and better than expected EZ Industrial Production data. The battle in the currency market continues to revolve around two key themes- decoupling and spillover. Euro bulls have consistently claimed that the EZ economy has separated itself from the troubles in US allowing the ECB to remain staunchly hawkish. So far they have been completely correct and the unit has benefited greatly from its interest rate advantage over the greenback which continues to expand.

ForexGen provides its institutional clients with incomparable professional and individualized trading services. As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our corporate and managed trading service performance are based on respect and appreciation which is only achieved by offering intelligent high end trading tools for secure investment. ForexGen is the easiest and fastest gateway for the corporate traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer. ForexGen provides advanced online trading software with full corporate trading services. A rich choice of managed accounts are also available, please check our Managed Account Section

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast deposits and withdrawal, a local support in more than 18 countries, and most of all, solid funds security.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.