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The euro is moving lower in forex trading on the currency market, heading down after the Irish bailout. Even though European governments outlined plans for future bailouts at the time, there are still mixed feelings about the whole bailout issue throughout the euro zone.

For now, the U.S. dollar is mostly higher in currency trading on the FX market, while the euro struggles. Concerns about euro zone growth in the coming months is quite high, as it is obvious that European governments will have to curb their spending in order to rein in sovereign debt.

As a result, the euro is losing ground. Risk appetite in general appears to be weak today as the U.S. dollar gains in currency trading on the FX market.

Euro’s collapse continue amid fears that more countries in Europe will join Ireland and Greece. The tension between North and South Korea is also fueling current decline and the euro trades below last week’s 1.3300 which provided support for 2 days. Upside correction signs are not visible yet but in case of a break above 1.3300, a run up to 1.3500-1.3550 should be favored – and that is where fib barriers of last week’s down leg are formed, along with the former bottom established two weeks ago. Short-term sentiment remains bearish as long as the pair doesn’t return above 1.37 and it most likely won’t get that far up. Full article…

• US Dollar to Gain as Sovereign, Geopolitical Risk Spur Profit-Taking
• Euro Remains Vulnerable as Focus Turns to Portugal
• Japanese Yen to Rise vs Most Currencies, Decline Against US Dollar
• British Pound: Euro-Zone Debt Concerns to Dictate GBP Price Action
• Gold: Reversal In the Horizon as the Bullion Comes Under Pressure

LONDON (MarketWatch) — The cost of insuring Portuguese and Spanish government debt against default continued to rise Friday despite a denial by the Portuguese government that it’s under pressure to accept a bailout. The spread on five-year Portuguese credit default swaps, or CDS, widened by 20 basis points to 500 basis points, according to data provider Markit. That means it would cost $500,000 annually to insure $10 million of Portuguese debt against default for five years, up from $480,000 on Thursday. The Spanish CDS spread widened to 312 basis points from 303, while Ireland widened 18 basis points to 600.

It’s Thanksgiving week – a holiday shortened week that is mainly going to effect the turnover in the U.S. but considering that the hours between 8:00am and Noon EST are typically the most volatile for dollar-correlated pairs, this is significant. For this reason and for the reason that we are entering the six strangest weeks of the year (generally speaking) I like to focus on shorter, intraday time frames. Let’s also consider some non-cyclical reasons for this shift. Most of the daily charts in that trade against the dollar are in some sort of sideways range, mainly the somewhat unpredictable congestion that is distribution.

Full article…

The U.S. dollar is gaining against commodity currencies today. One of the biggest reasons is that gold prices are plunging, bring other metals prices down.

Gold prices dropped below $1,400 an ounce today. Some of it was probably caused by profit taking, but another concern is that China is taking active steps to slow its economic growth.

Commodity currencies rely on commodity prices, like that of gold, to help them. The Canadian dollar, Australian dollar and New Zealand dollar are all down against the U.S. dollar today as gold prices head down. The euro is expected to show weakness relatively soon as well.