Currency Trading

Dollar Rises Against Most Major Currencies – The US dollar has pulled back across the major currencies as US non-farm payrolls fell more than expected in August, marking the eighth consecutive month of contraction in US job growth. The dollar rose against most major currencies on Friday despite the fact that the Labor Department reported that U.S. employers cut 84,000 jobs in August, wider than expected. The US currency regained ground later amid lower oil prices and weak economic out look in Europe.

EUR/USD: The euro was still under pressure after some dovish comments from European officials and lower growth forecasts in the euro zone. The euro was at $1.4250 against the U.S. dollar at 11 a.m. London time from $1.4498. It touched $1.432, the lowest since Dec. 21. The European currency has dropped for six straight days. The euro bought 1.4243 dollars in late New York trading compared with 1.4331 dollars late Thursday.

GBP/USD:The British pound continues to run downhill and fell to 1.7634 dollars from 1.7690 dollars. More signs of a weaker U.S. economy or a rate cut by the Fed may slow down the decline in the Pound or trigger a much needed short-covering rally.

USD/CHF: The dollar rose to 1.1168 Swiss francs from 1.1088 Swiss francs. The higher Dollar versus the Swiss could top out if the U.S. economy weakens further or if the U.S. credit crisis worsens. If those events take place, then look for traders to seek the safety of the Swiss Franc.

USD/JPY: The USD/JPY started a strong short-covering rally. This was more of a reaction to the lack of fresh sellers rather than new buying.The dollar rose to 107.13 Japanese yen from 107.04 Japanese yen. the USD JPY started a strong short-covering rally.

USD/CAD: The USD/CAD yo-yoed most of the week on conflicting economic data. Early in the week the Bank of Canada surprised long traders by keeping rates unchanged at 3% and hinting at no further rate cuts this year because the Canadian economy was operating near capacity. The dollar fell to 1.0643 Canadian dollars from 1.0673 Canadian dollars.