EUR/USD
When the dollar
weakens the EUR/USD will rise and if the USD recovers then a strong foreign
demand will send EUR/USD lower If you think the U.S. economy will become weaker and hurt the
US Dollar, you can ASK, which means that you are Asking Euros and expecting
them to go up against the US Dollar. If you think that there will be increased
foreign demand for US financial instruments such as equities and treasuries,
and that benefit the US Dollar, click on BID, which means that you are Asking U.S.
Dollars, expecting them to climb in value against the Euro
USD/JPY
Japanese
government intervention to weaken their currency sends USD/JPY higher and gains
in Nikkei and demand for Japanese assets drive USD/JPY down. For example, you
think that the Japanese government will continue to weaken the yen in order to
help its export industry, you would click on ASK, expecting the U.S. dollar to
increase in value against the yen. If you think that Japanese investors are
pulling money out of U.S. financial markets and repatriating funds
back into the Japanese asset markets, such as the Nikkei, you would click on BID. This means that you expect the Yen to
strengthen against the U.S. Dollar as Japanese investors Bid their assets and
convert their Dollars back into Yen.
GBP/USD
High
Yield and attractive growth in the UK drives GBP/USD higher speculation about UK adopting the euro will send the GBP/USD lower. For example, you think the
British economy will continue to benefit from its high yield and attractive
growth, thus buoying the Pound, you would click ASK, which means that you
expect the British Pound to strengthen against the U.S. Dollar. If you believe
the British are about to commit themselves to adopting the Euro, you would
click BID, expecting the Pound to weaken against
the Dollar as the British devalue their currency in anticipation of merging
with the euro.
USD/CHF
Global stability and global
recovery will send USD/CHF higher USD/CHF rallies on geopolitical instability.
For example, you think that the market is headed towards a period of global
stability and economic recovery, meaning that investors no longer need to park
their money in the safe haven currency such as the Swiss Franc, you would click
ASK, expecting the U.S. Dollar to strengthen against the Swiss Franc. If you
believe that due to instability in the Middle East and in U.S. financial markets, the dollar will
continue to weaken, you would click BID, expecting the Swiss Franc to strengthen
against the dollar.
EUR/CHF
Swiss government
uses verbal intervention to weaken the Franc, sending EUR/CHF higher. For
example if inflation took off in Germany and France it could drive EUR/CHF lower.
Thus for example if you think the Swiss government wishes to devalue the
currency to help exports in Europe, you would click ASK, expecting the Euro to increase in value
against the Swiss Franc. If inflation started taking off in Germany and France, you would click BID expecting the Swiss Franc to increase in
value against a devalued Euro.
AUD/USD
Rising commodity
prices sends AUD/USD higher Droughts hurt Australian
economy and AUD/USD. For example, you think that
commodity prices are going to rise dramatically, thus benefiting the Australian
Dollar, you would click ASK, expecting the Aussie to strengthen against the
U.S. Dollar due to Australia’s status as one of the world’s leading commodity
exporters. If you believe that Australia will face another drought, hurting the
domestic economy, you would click BID, expecting the U.S. Dollar to strengthen
against the Australian Dollar.
USD/CAD
Canadian economic
underperformance against US sends USD/CAD higher
Higher interest
rates and rebounding labor market in Canada will help to drive USD/CAD lower
If,
for example, you think that the U.S. economy is going to rebound while the
Canadian economy goes into recession, you would click ASK, expecting the U.S.
Dollar to strengthen against the Canadian Dollar. If you believe that the
higher yields and rebounding labor market in Canada warrants a higher valuation for the Canadian
Dollar against the U.S. dollar, you would click BID, expecting the Canadian Dollar to decline
against the U.S. dollar.
NZD/USD
Bad weather in
US increases demand for foreign wheat sending NZD/USD higher
New Zealand Interest rates expected
to decrease sending NZD/USD lower
If, for example, you think
that Hurricane damage in the US will lead to an increase for wheat
imports from foreign nations such as New Zealand, you would click ASK, expecting the New
Zealand Dollar to strengthen in value against the U.S. dollar. If you felt that
interest rates in New Zealand would fall in the future while interest
rates in the US will continue to rise, you would click BID expecting the New Zealand to drop in value against the U.S. Dollar.