| May 17 2012, 11:41:48 GMT | Sydney: | 21:41 | Tokyo: | 20:41 | Barcelona: | 13:41 | London: | 12:41 | New York: | 07:41 | San Francisco: | 04:41 |
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Firmer U.S. equity markets are triggering renewed demand for risk at the mid-session. This is helping to weaken the Dollar while fueling a rally in the higher yielding Australian Dollar and New Zealand Dollar.
The EUR USD is also gaining strength on renewed talk of a possible bailout of Greece by the European Union. Without any major economic reports to guide it, the Euro remains sensitive to any news regarding Greece.
Short-covering triggered by the weakening Dollar is helping to boost the GBP USD off its lows. Although this market is up off the low, the fundamentals continue to remain weak.
The pick-up in demand for higher yielding assets is helping to support the USD JPY. The firming Euro is helping the USD CHF erase earlier gains. The better the Euro, the less chance of an intervention by the Swiss National Bank.
Demand of higher yielding assets helped turnaround the AUD USD and NZD USD after earlier weakness. Falling gold and crude oil prices weakened the Canadian Dollar, but the turnaround in both of these markets is pressuring the USD CAD.
Traders should watch for a strong surge in U.S. equity markets to trigger a break in the U.S. Dollar.
Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of
leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider
your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some
or all of your initial investment and therefore should not invest money that you cannot afford to lose. You should be aware of
all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
