Forex Bazaar

Miss us?  I am sureyou did.  After a bit of a break sortingout a variety of things, we are back for this new year and Happy New Year andall the best in 2011!

So, how have we started this new year?  Let’s get into the USD which, as we mentionedin 2010, looks like it is on the rebound albeit on gradual and slow one.  Against the CAD, which dropped then regainedground at 99.30 cents.  The loonie isbeing affected by what is currently going on in the European Union, namelyPortugal may need a bailout.  This lateston poor financial management from certain EU countries follows last month’sIrish admission that the country also held out on accepting a bailout.  Where have these countries been the last twoyears when the whole planet was suffering a recession, huh?  As a result the Euro fell as well andregained some ground to $1.2925. 

The Euro may become the new weak currency in 2011 (or atleast for the first quarter of the year) taking over from the greenback in 2010as the debt issue not only plagues Portugal, but also Spain and Italy.    As aresult, Sterling hit a 4 month high against the currency with the Europurchasing only 82.85 pence.  The GBPfell and then rebounded against the USD, purchasing $1.5530; however,inflationary pressures may force the Bank of England to raise the interest ratefrom the currently low 0.5%.

Finally, the general movement of the currencies recentlyalong with the generally positive reports coming out of North America and theUnited Kingdom has caused the Yen to remain low at 80.982 against the dollar.