Forex News

The Australian dollar may start the year gaining against refuge currencies like the yen, and currently not so attractive currencies like the pound and the euro as a global recovery expected for 2010 may trigger stronger demand for commodity exports from Australia, favoring the national currency in foreign-exchange markets.

The Canadian currency rebounded in the end of 2009 despite the nation’s central bank statements that a strong currency can be an obstacle for exporters and consequently to the economic recover, as global demand for commodities rose more than speculations regarding Canada’s central bank position towards loonie.

The U.S. currency rebounded versus the euro before the end of this week’s session as another positive report brought optimism towards the economic outlook in 2010 for the United States.

After gaining more than 5 percent this month versus the euro the greenback declined as investors speculate that current gains for the U.S. currency may have been excessive, forcing the dollar down versus higher-yielding currencies as well.

The U.S. dollar had a bullish performance today and gained considerably versus the euro and the yen as speculations rose that the Fed will start a process of lifting economic stimulus introduced during the worst moments of the global slump to revive the U.S. economy.

The Canadian dollar dropped from the highest level in 2009 versus the euro as stocks did not manage to extend the advance reached in the beginning of the week, forcing the currency down also versus its U.S. counterpart.

The Canadian dollar, together with other currencies from commodity producer countries, is profiting from positive estimates for 2010 global economic recovery, which if confirmed will raise demand for Canadian commodities, consequently pushing the loonie up.

The dollar declined versus the euro and higher-yielding currencies as stocks rallied worldwide on evidences that the economic recovery is improving around the world, fueling risk appetite among traders that opted today specially by currencies like the South African rand, a high-yielding emerging market bet.

The U.S. currency reverted a negative trend versus the euro before a consumer confidence report to be published tomorrow, which is likely to indicate improving conditions, raised attractiveness for the greenback in foreign-exchange markets.

As the crude oil, Canada’s main export to the U.S., continued to climb today, the Canadian currency traded high versus most of the 6 majors currencies, as the loonie’s outlook remains among the best bets for 2010 in foreign-exchange markets.