The USD gained a little ground against other major currencies yesterday, particularly the JPY after that nation’s Finance Minister hinted at the possibility of “intervention” to slow any further increase in the yen. U.S. gold futures fell slightly in choppy trading as a USD increase encouraged bullion investors to lock in their profits, but strong technical support should keep gold from falling even more.
Japan's new finance minister, Hirohisa Fujii, has upset the foreign exchange…
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Added by Forex Daily Digest on September 30, 2009 at 7:30am —
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The USD lost some of its gains yesterday after the U.S. equities markets began trading in the positive. The Dow Jones Industrial Average actually finished higher by more than 124 points. Over the past few months, the U.S. dollar has moved in the opposite direction as stocks. The USD is considered a currency that holds value in uncertain times. Then as the position has brightened, investors have sold their dollars to buy more volatile but higher-yielding currencies.
The JPY hit its…
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Added by Forex Daily Digest on September 29, 2009 at 7:49am —
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World Bank President Robert Zoellick said the U.S. shouldn’t take for granted the dollar’s status as the world’s main reserve currency. In remarks set for delivery today, Zoellick said the “next upheaval” in the international economic order is under way as emerging nations gain greater influence. In an excerpt from Zoellick’s speech he said, “The United States would be mistaken to take for granted the dollar’s place as the world’s predominant reserve currency.” Policy makers from China to…
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Added by Forex Daily Digest on September 27, 2009 at 7:18pm —
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The USD gained against major currency rivals yesterday following a report that showed U.S. sales of existing homes unexpectedly fell in August for the first time in five months. The National Association of Realtors reported that sales of existing U.S. homes dropped 2.7% in August to a seasonally adjusted annual rate of 5.10 million. The median forecast was for a small gain to a 5.40 million annual rate from 5.24 million in July. The USD remained higher after the Labor Department reported…
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Added by Forex Daily Digest on September 25, 2009 at 7:00am —
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The USD, already hitting its lowest levels of the year, is expected to continue to grow weaker even as an improving U.S. economy leads the Federal Reserve to unwind more of its liquidity-boosting programs. That's because the U.S. currency has increasingly been at the center of a so-called carry trade. The USD fell across the board in Asia, hitting fresh yearly lows against the EUR, the NZD and the AUD ahead of the latest update on monetary policy by the U.S. Federal Reserve. After an unstable…
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Added by Forex Daily Digest on September 24, 2009 at 7:33am —
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The USD fell to a one-year low against the EUR, just over $1.48 as crumbling sentiment on the U.S. currency prompted selling ahead of a Federal Reserve meeting and Group of 20 summit this week. Traders took advantage of a dollar rally in the prior session to sell on views the Fed will signal plans to maintain loose monetary policy well into 2010. U.S. gold futures rose toward $1,020 an ounce, gaining one percent as a sharp deterioration of the dollar's value triggered investment buying in gold…
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Added by Forex Daily Digest on September 23, 2009 at 7:32am —
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The USD was up against the EUR yesterday ahead of the G20 meeting being held in Pittsburgh this week. It also gained a bit of ground as investors seemed to be chased away from risky trades ahead of today’s FOMC meeting. The dollar also was higher after news from the Conference Board that reported the U.S. recession is bottoming out and a recovery is near. The index of leading economic indicators rose 0.6% last month. Analysts predicted the index would rise 0.7% in August.
Federal…
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Added by Forex Daily Digest on September 22, 2009 at 8:14am —
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The USD gained a bit of ground at the end of the week, as traders looked toward next week's meeting of Federal Reserve policy makers and reduced bets that the greenback would continue declining steadily. The Fed's rate-setting Federal Open Market Committee (FOMC) meets Tuesday and Wednesday. Analysts anticipate no change to the central bank's target overnight lending rate between banks, but speculate whether the fed will make changes to its debt-buying programs.
The EUR, which had…
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Added by Forex Daily Digest on September 21, 2009 at 6:10am —
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The USD turned higher as pessimism about the economic attitude was felt across the markets, strengthening the sales of equities and higher-yielding currencies. The Dow Jones Industrial Average finished just slightly lower (-7.79) after three consecutive days of gains, with telecommunication services and financial shares causing the loss. Wall Street analysts said the market was due for a sell-off after totaling gains in eight of the last 10 trading sessions.
Stocks increased after…
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Added by Forex Daily Digest on September 17, 2009 at 7:44pm —
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The USD fell against its major rivals after an uptick in homebuilders' sentiment added to stocks' gains and encouraged sellers of low-yielding assets. The USD fell throughout during the U.S. session, depressed by a fresh show of strength to U.S. manufacturing gave investors new reasons to buy stocks and higher-yielding currencies and dump safe-haven securities such as the dollar.
An independent survey shows that investors have turned the most bearish on the USD in 18 months as signs…
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Added by Forex Daily Digest on September 16, 2009 at 7:46pm —
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The USD fell yesterday, dropping to the lowest level in a year and reversed earlier advances against major counterparts after a pair of economic reports said retail sales and producer prices rose more than economists expected, encouraging speculation that the economy is reviving. For months, the dollar has been inclined to move in the opposite direction as equities as investors' willingness to buy riskier assets fluctuates. That trend has shown signs of diminishing in the past month or so,…
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Added by Forex Daily Digest on September 15, 2009 at 9:02pm —
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The USD fell against major rivals in trading to begin the week, giving up a small lift amid rising U.S.-China trade tensions, as the EUR and JPY hit technical levels that triggered some buying. While there was no U.S. economic data scheduled on Monday, several reports this week have the potential to influence the currency market. Retail sales, due out this morning, is expected to show a big jump though most attributable to auto sales due to the so-called cash-for-clunkers program. Data on…
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Added by Forex Daily Digest on September 14, 2009 at 8:12pm —
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The USD fell to new lows on Friday, after strong data on U.S. confidence followed Chinese economic news and boosted investors' appetite for riskier assets. A growing group of analysts also speculated that investors may be returning to trades using the USD as a funding currency to buy higher-yielding assets, known as carry trades. Meantime, currency speculators raised their bets against the USD in the latest week to the most since at least mid-July of last year.
From a week ago, the…
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Added by Forex Daily Digest on September 13, 2009 at 6:04pm —
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The USD fell for a fourth straight day, again hitting its lowest levels in a year, as stocks held on to small gains after a U.S. report that showed a drop in jobless claims. The Labor Department reported that the number of people filing for state unemployment benefits fell 26,000 to a seasonally adjusted 550,000 last week, which is the lowest since mid-July. The four-week average of new claims also fell, down 2,750 to 500,000.
The JPY rose against the EUR and the USD before a…
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Added by Forex Daily Digest on September 10, 2009 at 9:00pm —
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The USD dropped to the weakest level in almost a year against the currencies of six major U.S. trading partners as record low interest rates encouraged investors to sell the dollar and embrace risk. The greenback became the cheapest funding currency in London this week, making it more attractive as a means of financing purchases of higher-yielding assets.
A key bank-to-bank lending rate fell to its lowest point on record yesterday, signaling continued easing of the once-frozen credit…
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Added by Forex Daily Digest on September 9, 2009 at 7:44pm —
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The USD fell to a new annual low against the EUR and fell versus other major rivals, undercut as investors continued to show rising appetite for risk. The dollar's weakness came against conditions marked by higher in equities and improving economic data abroad -- as well as renewed questions about the role of the USD as the world's premier reserve currency.
Gold futures hit an 18-month high, as a weaker dollar boosted gold's investment appeal, but ended the day below the…
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Added by Forex Daily Digest on September 8, 2009 at 8:30pm —
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According to the United Nations, the USD’s role in international trade should be reduced by establishing a new currency to protect emerging markets from the “confidence game” of financial speculation. The Geneva-based U.N. Conference on Trade and Development said in a report that U.N. countries should agree on the creation of a global reserve bank to issue the currency and to monitor the national exchange rates of its members. China, India, Brazil and Russia called for a replacement to the…
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Added by Forex Daily Digest on September 7, 2009 at 8:01pm —
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It’s Labor Day in the United States and that means the equities markets are closed and many of the serious traders have taken a long weekend off. But the Forex trades regardless of American holidays, albeit, probably not as robust as a typical trading day.
It appears that overseas markets are becoming a foundation of strength for U.S. producers, helping to contract the U.S. trade deficit in one of the few bright spots in the global recession. The U.S. trade report will be one of the…
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Added by Forex Daily Digest on September 6, 2009 at 8:00pm —
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The dollar turned higher after an early bout of weakness. The dollar opened under pressure as investors briefly abandoned safe-haven positions after a leading economic forecaster grew more confident.
Initial jobless claims fell last week but claims lasting more than a week increased. The data are another precursor to the monthly employment data due from the government later this morning. In another report, the Institute for Supply Management said its nonmanufacturing index came in at…
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Added by Forex Daily Digest on September 4, 2009 at 7:30am —
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The USD held onto gains against major currency counterparts, as weaker-than-expected private sector employment pressured stocks and fueled demand for safe-haven, low-yielding currencies. ADP reported that employment in the U.S. private sector fell by 298,000 in August. The drop suggests non-farm payrolls may drop by more than the 250,000 anticipated by economists ahead of the government's much-anticipated report due out Friday morning.
The AUD jumped against its U.S. counterpart, as…
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Added by Forex Daily Digest on September 3, 2009 at 8:07am —
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