Forex Daily Digest's Blog – June 2009 Archive (18)

The U.S. invested its way to an amazing second-quarter performance even though stocks' spring recovery slowed down weeks ago. The major stock indexes managed to finish the second quarter with double-digit percentage gains. But whether the market salvages its drive in the July-September period or slows again will depend on what U.S. companies have to say in the next few weeks — not just about their own earnings prospects, but the U.S. economy's outlook too.



The JPY traded lower versus… Continue

There was good news for the dollar this morning. The USD increased after China said the dollar may continue to control global trade and ruled out any “sudden” changes to its foreign-exchange reserves. Brazil, Russia, India and China are insisting they have a bigger say in the operation of global financial institutions. Russian and China, which has almost $2 trillion of foreign-exchange reserves, called for the creation of alternatives to the USD as a reserve currency.



The euro was… Continue

This week will end the first half of the year and the situation around the global economy has taken its toll with some investment opportunities. But the Forex is unique and can be used to fill in the gaps when investing gets tough; especially when equities are soft.



In the News today -



The USD gained against the JPY after China ruled out any “sudden changes” to its foreign- reserves policy. European equities increased, bouncing back from their first back-to-back weekly… Continue

The dollar was mixed against major currencies as the initial jobless claims increased unexpectedly, while the Fed made the first move toward removing many of the emergency lending programs it started last year at the apex of the current global financial crisis. The final first quarter GDP came in a bit lower than anticipated – 5.5 percent versus 5.7 percent.



The third U.S. Treasury auction of the week helped improve the confidence that the U.S. government will be able to raise enough… Continue

The equity markets finished mixed yesterday after a stronger-than-forecast durable-goods orders report and the statement from the Federal Reserve that hinted it would not raise interest rates anytime soon. Investors have lowered their rate-hike expectations over the last month or so. The dollar advanced against the Japanese yen but fell against the euro. Today's U.S. economic calendar includes data on weekly initial jobless claims as well as the final estimate of first-quarter Gross Domestic… Continue

The FOMC is meeting through Wednesday afternoon and it appears likely the Federal Reserve plans to keep its options open until it’s sure that the U.S. economy is well on its way toward recovery. Economists believe the U.S. central bank is not about to hurry into any kind of a strategy that will take it away from current policy at the present time. A Fed announcement is anticipated at 2:15 pm (Eastern Time) Wednesday afternoon. In its statement, the FOMC is expected to announce that they will… Continue

The equities markets experienced their most volatile trading day in two months on Monday. Big decliners were Bank of America and Alcoa and, among other things, the weak showing had a definite impact on the global confidence in the dollar. The World Bank announced today that the world’s economy will contract 2.9% this year which is a sharper decline than the 1.7% tightening it predicted back in March. The World Bank also said that the world “has entered an era of slower growth that will require… Continue

There seems to be some positive economic signs brewing for the second half of the year. Although growth is expected to be rather fragile at first; not able to sustain any massive push forward – especially in the critical job market. Most of the benefits will come from the massive cash infusions the Obama government has completed over the past few months. The bad news is – the economy continues to collapse. The good news is – it’s collapsing at a much slower pace.



This week the… Continue

After a very busy week, there are no major U.S. economic reports scheduled for today. Next week you can expect to see a number of important events that just might have a major impact on your Forex trading. Scheduled for release is the Existing and New Homes Sales reports, Durable Goods, first quarter Gross Domestic Product, Personal Income and Spending and the announcement from the next FOMC meeting will be released on Wednesday afternoon. There was a report this week that said Federal Reserve… Continue

It was a historic day in Washington DC as President Obama created a new government role for the financial regulatory system which rivals the reorganization that was enacted in the aftermath of the Great Depression in the 1930s. To avoid another economic collapse, the President said that financial regulatory reform is needed to ensure that another credit crisis does not occur again.



Key aspects of the Obama's financial regulatory reform proposals include the Fed becoming a systemic… Continue

The dollar recovered a bit from losses against a basket of currencies early today as a drop in European shares induced traders to release some positions in currencies that are perceived as high risk. The dollar also got some relief after the leaders of the emerging BRICs nations decided to steer clear of any direct attack on the USD's dominance; although Russia did call for a much smaller role for the dollar.



The GBP fell the most in more than a week against the euro and posted a… Continue

The U.S. dollar lost a bit of ground early today after a couple of days of solid advances, showing a some weakness against major currencies after the Bank of Japan issued an improved economic outlook and a measure of German investor confidence increased.



Also int he news today, Russia plans to ask for a cautious approach to any changes in global reserve currencies as leaders of Brazil, Russia, India and China - the so-called BRIC nations - meet in Russia. A top aide to Russian… Continue

It’s the start of another busy week with a great deal of news and economic reports that will surely influence the Forex trading this week.



The USD improved ahead of this past weekend’s G8 Finance Minister’s meeting in Italy, with Japan’s Finance Minister Yosano using his influence to push the USD higher. In light of recent speculation among Chinese and Russian government officials soliciting the need for a new global currency, Yosano expressed confidence in US Treasuries – calling… Continue

It’s the end of the week and we’ve seen some definite economic challenges as well as several terrific Forex trading opportunities over the past few days. Some of the economic reports on Thursday offered few disappointments. Retail sales finished up in May and weekly unemployment claims fell. Some money managers are remaining guarded, saying the economy still may be looking at some epic challenges, despite hundreds of billions of dollars of support from the Obama government.



Former… Continue

The dollar found some strength yesterday, as U.S. stocks encouraged safe-haven flows into the greenback, helping to counterbalance foreign-exchange concerns over reports that Russia would cut its holding of U.S. Treasuries. Japan revised its January through March Gross Domestic Product number to a 3.8% decline, up from 4% drop.



The CAD destabilized a bit after stocks fell and the USD found some momentum accompanied by rising yields on 10-year Treasury notes and analyst conjecture… Continue

The markets shrugged off the possibility that ten of the nation’s major banks will pay off their TARP loans after being given the permission to do so by the U.S. Treasury Department. Ten other big banks/lenders have a tougher pathway before they will be able to repay. The Fed approved capital-raising plans for these firms earlier this week which must be completed by Nov. 9th in order to obtain consent from the Treasury to pay back the government TARP money.



The USD showed some… Continue

Another day and another opportunity for some great Forex trades. The USD and equities moved indiscriminately in Monday’s trading session. The dollar is totally mixed, ending higher against the euro and commodity currencies, but lower against the yen and pound. Monday’s trading developments seemed to spell out the fact that, since economic data is at a minimum this week, no one can ascertain a definitive direction. International political and economic news seems more uncertain as the waiting… Continue

There are plenty of U.S. economic events scheduled for this week that could very well effect your Forex trading. Be on the lookout for Wholesale Inventories on Tuesday. The market expects inventories to come in at a negative 1.0 percent. Last month it recorded at negative 1.6 percent decline. Wednesday the U.S. Trade Balance will be released; expected at a negative $28.7 billion. Also on Wednesday, Crude Oil Inventory figures will be on the street, as well as the Federal Budget figures and the… Continue