August 2009 Blog Posts (21)

The Forex Daily Digest – August 31, 2009

As we approach the end of the summer months, U.S. equities markets may experience a slow week but topped off by a potential activity when the government releases its August jobs report on Friday morning. Economists in the U.S. are predicting that employers dropped another 250,000 positions in August, which is a little more than last month’s 247,000. Prior to Friday’s jobs report from the Labor Department, stocks will prepare for two other reports on jobs -- an August report from payroll… Continue

Added by Forex Daily Digest on August 31, 2009 at 7:24am — No Comments

The Forex Daily Digest – August 28, 2009

The USD fell against major counterparts, as stocks -- partly helped by a successful auction of Treasury bonds -- staged a come-back in afternoon trade, leading traders to dump some safe-haven positions in low- yielding currencies.

Asian markets advanced today after stocks on Wall Street rebounded to end higher, with Japanese shares on the advance ahead of weekend general elections that are widely expected to bring the opposition to power. Also in news from Asia, the Bank of China,… Continue

Added by Forex Daily Digest on August 27, 2009 at 9:28pm — No Comments

The Forex Daily Digest – August 27, 2009

The USD moved higher against the EUR for a third day and the JPY rose as potential restraints on industrial excess in China and a smaller-than-forecast gain in orders for some U.S. durable goods encouraged demand for safety. The JPY and USD rose against counterparts including the AUD on speculation investors will reduce demand for higher yields. Sterling dropped for a sixth day versus the EUR in its longest stretch of declines since January on bets the U.K.’s economic recovery will lag behind… Continue

Added by Forex Daily Digest on August 27, 2009 at 7:08am — No Comments

The Forex Daily Digest – August 26, 2009

The USD experienced a bit of recovery, rebounding from earlier losses, as a drop in crude oil prices restricted gains in stocks, and increased safe-haven demand for the dollar. The USD came under increased pressure following reports that U.S. home prices were up in June and consumer confidence rose in August.

In another development widely accepted by investors, President Obama announced that he plans to reappoint Fed Chairman Ben Bernanke for a second four-year term as chairman of… Continue

Added by Forex Daily Digest on August 26, 2009 at 8:28am — No Comments

The Forex Daily Digest – August 25, 2009

The dollar strengthened against major world currencies, recovering from recent declines after signs this past weekend that most of the world’s key central banks backed a policy of keeping interest rates low for the foreseeable future even as the global economy appears to be mending. Analysts continue to expect that signs of strength in the U.S. economy will eventually be read as a positive for the USD, ending a contrary connection since the credit crisis began when downbeat news triggered… Continue

Added by Forex Daily Digest on August 25, 2009 at 8:15am — No Comments

The Forex Daily Digest – August 24, 2009

European Central Bank officials, led by President Jean-Claude Trichet, addressed mounting evidence of an economic recovery with caution, suggesting they won’t rush to reverse their emergency stimulus anytime soon. Economic numbers scheduled to be released this week may increase optimism that a recovery is currently in progress.

At a meeting over the weekend in Jackson Hole, Wyoming, the U.S. Federal Reserve continued to hold to its intention to maintain interest rates exceptionally… Continue

Added by Forex Daily Digest on August 23, 2009 at 7:23pm — No Comments

The Forex Daily Digest – August 21, 2009

Concern over the continued volatility of the world economy helped support the USD against major counterparts. There were a number of economic fundamentals that affected early trading. Initially, the spotlight was on Germany's finance ministry, which warned that it remains unsure whether the stabilization of the economy will hold. This just a week after German gross domestic product unexpectedly returned to growth in the second quarter.

A Bank of Japan board member told business… Continue

Added by Forex Daily Digest on August 21, 2009 at 7:41am — No Comments

The Forex Daily Digest – August 20, 2009

The USD fell against the EUR as a rebound on Wall Street reduced safe-haven demand for the dollar. The USD weakened against the JPY, although it came off the day's worst levels as a sharp drop in China's stock market raised concerns about the global economic outlook.

The GBP has had a bad week, a let-down after five months of consistent gains. Currency analysts say the normally volatile currency could still pick up some recently lost ground because its major rival, the USD, is facing… Continue

Added by Forex Daily Digest on August 19, 2009 at 9:02pm — No Comments

The Forex Daily Digest - August 19, 2009

Better-than-expected quarterly profits from retailers like Home Depot, Target and American Express led to a bounce-back for financials which helped stocks close higher yesterday. In the wake of steep declines in the past two sessions, consumer stocks had a solid move higher. While concern about the health of the American consumer remains, largely due to a still weakened labor market, some within the industry were able to suppress investor fears on the session.

The USD and JPY may… Continue

Added by Forex Daily Digest on August 18, 2009 at 9:00pm — No Comments

The Forex Daily Digest – August 18, 2009

The USD and the JPY traded near the highest levels in more than two weeks against the EUR as stocks dropped globally over concern the economic recovery may falter. Wall Street fell in yesterday’s trading, falling for the second straight session, as worries that nervous U.S. consumers will pressure a delicate recovery pulled stocks lower after a five-month advance. The Dow Jones industrial average lost 186 points, or 2%, after having lost as much as 204 points earlier. The S&P 500 index fell… Continue

Added by Forex Daily Digest on August 18, 2009 at 7:32am — No Comments

The Forex Daily Digest – August 17, 2009

The JPY was broadly firmer today after weak economic data out of the U.S clouded the outlook for a quick global recovery, prompting further profit taking in commodity-linked currencies after their exceptional rally. Japan’s currency advanced against all 16 major counterparts on expectations that the world’s second-largest economy climbed out of its worst postwar recession last quarter. The EUR fell against the JPY for a second day on speculation Asian stocks will extend a drop in global… Continue

Added by Forex Daily Digest on August 17, 2009 at 6:31am — No Comments

The Forex Daily Digest – August 14, 2009

The USD showed weakness against most major counterparts, undercut by disappointing U.S. July retail-sales figures, while data showed Germany and France unexpectedly returned to growth in the second quarter. Currency markets also digested this week’s Federal Reserve's announcement to leave interest rates unchanged and to gradually slow its purchases of Treasuries.

The Federal Reserve Bank of New York announced that U.S. monetary authorities did not intervene in foreign exchange… Continue

Added by Forex Daily Digest on August 14, 2009 at 8:02am — No Comments

The Forex Daily Digest – August 13, 2009

The USD overcame earlier losses against major counterparts after the U. S. Federal Reserve left interest rates unchanged, near zero percent, and said it would gradually slow its purchases of Treasuries. The Fed promised to keep interest rates exceptionally low "for an extended period of time," even as it drew encouragement from a stronger economic outlook.

The Fed will let its Treasury-buying program, part of its "quantitative easing" measures, end in October. Allowing the program… Continue

Added by Forex Daily Digest on August 12, 2009 at 9:11pm — No Comments

The Forex Daily Digest – August 12, 2009

The USD held losses against the JPY and the EUR yesterday after an auction of $37 billion in U.S. Treasury notes. And government data showed that U.S. non-farm productivity in the second quarter rose at the fastest pace in six years as American companies cut costs to protect their profits. The Labor Department said productivity rose at a 6.4 percent annual rate, that’s the biggest gain since the third quarter of 2003.

Deutsche Bank AG said that the EUR will probably fall to 130 yen… Continue

Added by Forex Daily Digest on August 12, 2009 at 7:34am — No Comments

The Forex Daily Digest – August 11, 2009

The USD gained for a third straight day against a basket of currencies yesterday as investors continued to trade on the strong U.S. jobs numbers from last Friday while awaiting the Federal Reserve's statement after its policy meeting later this week. Analysts said extending the USD's latest gains may center on the actions and words of the Fed.

The U.S. sees a large group of economic releases this week, although events will be dominated by Wednesday’s FOMC announcement. We look for the… Continue

Added by Forex Daily Digest on August 11, 2009 at 7:14am — No Comments

The Forex Daily Digest – August 10, 2009

Get ready for another exciting trading week ahead. It appears that Asian markets started the week on an upbeat note after strong gains at the end of the week on Wall Street. Japanese shares received an additional boost as the yen's recent sharp fall encouraged exporters such as Honda Motor Co.

Japanese core machinery orders jumped 9.7% in June from the previous month, a much larger increase than the 2.9% rise expected on average by economists. Core orders exclude often-large orders… Continue

Added by Forex Daily Digest on August 10, 2009 at 7:30am — No Comments

The Forex Daily Digest – August 7, 2009

The markets are a bit skittish ahead of this morning’s Non-Farm payrolls report. Investors have been watching key economic data closely for any signs of a recovery. Sizeable job losses have already taken a toll on consumer spending.

The EUR and the GBP lost ground against the U.S. dollar after the Bank of England and the European Central Bank kept interest rates unchanged. The USD, which has served as a safe-haven currency, also benefited from hesitations ahead of the key U.S. July… Continue

Added by Forex Daily Digest on August 6, 2009 at 8:45pm — No Comments

The Forex Daily Digest – August 6, 2009

The USD fell to its lowest point this year against the EUR, giving up gains after a drop in U.S. stocks and a poor report on the U.S. services sector. The USD will be the major focus, as the Bank of England and European Central Bank hold rate meetings ahead of the New York stock market opening. Analysts do not expect rate moves from either the ECB or Bank of England. The U.K., which has had more favorable housing and ISM data recently, is unlikely to take any rate action or say much at all. The… Continue

Added by Forex Daily Digest on August 6, 2009 at 7:44am — No Comments

The Forex Daily Digest – August 5, 2009

The stock market took off for a bit of a run again yesterday. More buying in bank and financial issues and a Caterpillar-led gain for industrials helped stocks close slightly higher, although a pullback for utilities limited the day's trading. Insurers, financials and even REITs have all shown some strength. Earnings reports are, of course, the biggest driver of this recent stock growth.

In the end, the Dow Jones industrial average ended the day 33 points higher finishing at 9,320,… Continue

Added by Forex Daily Digest on August 5, 2009 at 7:30am — No Comments

The Forex Daily Digest – August 4, 2009

It was all about the earnings. Solid profits for Barclays and HSBC prompted another day of gains for the financials, while increasing demand for commodities. This assisted Alcoa to lead the broader market to its highest closes in almost nine months. With the USD deteriorating and a report showing manufacturing activity in China is growing, prices of crude oil and several metals increased.

One of the biggest earnings reports of the day came from Ford Motor Company. The automaker… Continue

Added by Forex Daily Digest on August 4, 2009 at 7:27am — No Comments