For those traders involved in Forex online trading, it has been a busy day for the U.S. dollar. The dollar took a hit in trading from many fronts, starting with yen. The reason why for the increase in value of the yen against the dollar is important to predict future Forex online trading between those two currencies.
According to Reuters, Charles St-Arnaud, foreign exchange strategist at Nomura Securities in New York, said “while the weakness of the dollar is pronounced against the yen, it is a broad sell-off that has more to do with [the U.S. Federal Reserve] policy than [the Bank of Japan] policy.”
This statement holds weight since the dollar fell to other currencies, like the euro. “The euro, meanwhile, gained against the U.S. dollar on Tuesday on news of a surge in factory output in Britain and Germany,” Reuters.
But for day-trading with Forex online trading it is important to keep track of each piece of news that comes out as reactionary trading is most prevalent in day-trading. As was reported in Reuters, “The dollar briefly pared losses versus the yen and euro after data showed the U.S. trade deficit narrowed sharply in June to its lowest in more than 3-1/2 years as imports reversed the prior month's spike, suggesting an upward revision to second-quarter economic growth.”
Some interesting Forex online trading was also seen between the U.S. dollar and the Australian dollar. With Reuters reporting that “the Australian dollar, meanwhile, also rose against the dollar, gaining after the Reserve Bank of Australia cut interest rates as expected and gave no clear indication it would ease policy further; [however] some view the Aussie's gains as temporary.” Valentin Marinov, G10 currency strategist at Citi told the Global MarketsForum (a Reuters online community), “the Aussie is likely to be pressured in the medium term by slowing growth in China as well as a strengthening U.S. dollar.”
Charles St-Arnaud said "this is symptomatic of how trading has been all summer, with so much volatility and people looking to lock in profits whenever they can," this is especially true with Forex online trading.