There are four major headlines going on right now that can impact how you would view the forex market. Forex news states that USA GDP data and jobless claims data are definitely going to support the Fed reducing the stimulus and bond availability. Furthermore, the dollar is rising while the yen is decreasing as a direct result of Syrian tensions backing off. The dollar has also been seen as limited for speculators. Furthermore, currency relief for the USD is a definite support of those aforementioned Fed moves.
Forex News in More Detail
The news being discussed here was for August 29, 2013. Depending on when you read the forex news it can be extremely old or still helpful to the long term trader. There are always going to be issues for the short term when it comes to news articles. The minute the news is released it is technically old due to the various pathways international corporations access data before the retail trader.
Thursday showed a definite two week peak. It was a large daily gain for the EUR/USD pair in which the dollar gained against the EUR. It was the largest gain seen in one day for the last four months even with strong US data. The data might have helped in recent months to bring value back to the USD; however, the Fed is still going to stop the stimulus to the economy which could lower the gains again according to forex news experts at Reuters.
Plenty of investors did buy into the USD given the better data for the second quarter. It has been marginalised in this past week due to Syrian tensions which forced many investors to head into CHF and JPY currencies. It was a short stint in these other safe haven currencies though since positive news keeps rolling out for the USD.
Forex News about Syria
Syrian forex news is not playing a large role compared to Monday in the same week. Tensions have eased just a bit. Emerging markets are also helping the dollar gain back some of the value it lost in previous months.
Besides Syria there are other considerations for how well the USD is going to play in the market. Italy has seen better results on the five year bond yields of late, which has definitely emboldened the Euro. When the Euro is positive it has a negative effect on the USD. Luckily the USA data is still stronger making that Thursday high possible.
For other currency pairs like the AUD/USD there is a fighting back and forth. Chinese news is also good, but with USD forex news becoming stronger the AUD/USD keeps going back and forth for what is a better currency to buy. For part of the day the AUD was in gain, while profit taking helped the USD grow a little too.
Even looking at this news as old there can be some lessons in how economic and political actions can affect the market as a whole.