The USD turned higher against the EUR, boosted by some technical buying. The U.S. stock markets and oil declined while Treasuries rallied after American employers unexpectedly eliminated jobs last month, spurring concern the economic recovery will weaken. The U.S. Dollar Index, a six-currency gauge of the strength of the USD, fell 0.5 percent after a U.S. payrolls report showed 85,000 jobs were lost in December. Some investors buy gold to hedge against a decline in the U.S.…
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Added by Forex Daily Digest on January 8, 2010 at 11:02am —
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The USD traded higher against most major rivals this morning, helped by remarks from Japan's new finance minister indicating a desire for a weaker JPY. Reluctance by traders to make big bets ahead of the release of December U.S. employment data last week helped relieve pressure on the dollar, after minutes of the last Federal Reserve meeting showed policy makers continue to expect a slow recovery with little threat of inflation pressure.
Japanese Finance Minister Naoto Kan said that…
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Added by Forex Daily Digest on January 7, 2010 at 9:54am —
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Investors turned bullish on the USD for the first time since March as the U.S. economy showed evidence of a sustained recovery. The Fed is likely to leave the bank's short-term interest rate target intact at 0% to 0.25% at the end of the FOMC meeting today, and is not expected to significantly change language in its statement promising not to raise rates for a very long time. Yesterday, the USD rose to the highest level in more than two months as stronger-than-expected U.S. economic reports…
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Added by Forex Daily Digest on December 16, 2009 at 9:54am —
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The USD rose to a two- month high against the EUR on the possibility that improving economic data in the U.S. will encourage the Federal Reserve to indicate an exit from policies intended to fight the recession. The U.S. dollar increased against 15 of its 16 major counterparts as futures indicated a 49.5 percent chance that the Fed, which began two days of policy meetings today, will raise its key rate by at least a quarter-percentage point by June, from near zero.
Canada’s dollar…
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Added by Forex Daily Digest on December 15, 2009 at 10:30am —
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The USD advanced against the EUR, JPY and other major currencies to finish the week, pushing it to the highest in two months, after a marked uptick in consumer sentiment bolstered expectations of a U.S. economic recovery. Data showing U.S. retail sales jumped more than twice as much as expected in November turned the dollar higher, reversing losses notched during European and Asian trading hours.
The USD is expected to continue recent gains this week due to optimism that the U.S.…
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Added by Forex Daily Digest on December 14, 2009 at 10:02am —
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The USD recovered early today after U.S. Retail Sales beat the economist’s consensus estimates. Retail sales rose a better-than-expected 1.3% in November which is the third increase in the past four months. The sales gains were widespread across most kinds of retail outlets, including autos, gasoline, department stores and hardware stores. Only clothes and furniture store sales declined. The consensus forecast of Wall Street economists was for retail sales to rise 0.5%.
The CAD moved…
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Added by Forex Daily Digest on December 11, 2009 at 9:50am —
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The USD is expected to extend its fall from almost a one-month high against the EUR after a rebound in U.S. stocks revived demand for higher-yielding assets. Meantime, the price of gold advanced, trimming this week’s loss, as a fall in the USD revived investor appetite for the precious metal as an alternative asset.
Economic reports released this morning included the Initial Jobless Claims report. The number of people filing claims for state unemployment benefits rose by 17,000 to a…
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Added by Forex Daily Digest on December 10, 2009 at 9:48am —
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The USD shed as much as one percent of its value against the JPY as the Japanese currency rallied, continuing its bounce back this week from heavy selling the previous week. Yesterday, the USD increased to its highest level against the EUR in five weeks and gained against other major currencies, as worries about high levels of debt in Greece and Dubai led investors to buy assets that would offer protection in a crisis.
Crude oil climbed, ending a five- day decline, as the USD fell…
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Added by Forex Daily Digest on December 9, 2009 at 9:37am —
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The USD gained as much as 0.7 percent against the EUR, climbing to a one-month high. Gold firmed up, moving away from a two-week low marked the previous day as the dollar weakened after the Federal Reserve chief cautioned that the U.S. economic recovery remains fragile. Gold typically moves inversely to the dollar and has added 30 percent this year as record-low Federal Reserve interest rates contributed to the currency’s 5.3 percent drop. Some central banks have bought bullion, helping to push…
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Added by Forex Daily Digest on December 8, 2009 at 9:30am —
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The USD was slightly higher against major rivals other than the JPY this morning, continuing Friday's sharp rally in the wake of a much smaller-than-expected drop in November non-farm payrolls and unexpected drop in the unemployment rate.
Gold futures fell more than 2%, extending their sharp losses, as the USD rose against its major rivals, reducing the appeal of bullion as a hedge against the currency's depreciation. Gold and the dollar have had a strong inverse relationship. The…
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Added by Forex Daily Digest on December 7, 2009 at 8:30am —
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The USD regained most of its earlier losses, after comments from European Central Bank President Jean-Claude Trichet about U.S. officials' support for the U.S. currency. A variety of U.S. data also left currency traders with little direction before the main event on Friday: the government's monthly payrolls report.
The ISM's nonmanufacturing index fell to 48.7 from 50.6 in October. Economists surveyed were expecting the index to rise to 51.5. The dollar was under pressure after the…
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Added by Forex Daily Digest on December 3, 2009 at 2:16pm —
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The USD held steady near the lowest level in 15 months against the EUR after ADP said U.S. companies cut 169,000 jobs in November, compared to a 203,000 loss the previous month. The dollar held gains against the JPY after Japanese Prime Minister Yukio Hatoyama reportedly said the yen's rise can't be left "as is," thus speculating that policy makers could move to limit gains. Later, a spokesman said Hatoyama wasn't signaling that the government was set to intervene.
The Bank of Japan,…
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Added by Forex Daily Digest on December 2, 2009 at 9:31am —
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The USD remained modestly higher against the JPY after the Bank of Japan decided to make available 10 trillion yen for short-term loans to commercial banks in an effort to fight off deflationary pressures. The USD and the JPY were both lower against most major rivals, as investors rejected low-yielding currencies in favor of higher-yielding assets. Concerns over Dubai's debt problems faded and a gauge of manufacturing activity in China indicated the fastest pace of expansion in five years. The…
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Added by Forex Daily Digest on December 1, 2009 at 9:56am —
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The USD fell against other major currencies, falling back from gains made last week, after the United Arab Emirates offered emergency assistance to banks in Dubai, calming market fears about an ominous debt default. The USD pared some losses after one of two flagship firms behind Dubai's rapid growth said it had asked for three listed Islamic bonds to be suspended from the Nasdaq Dubai until it could inform the market fully about the outlook for the bonds.
European Central Bank…
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Added by Forex Daily Digest on November 30, 2009 at 11:00am —
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The USD and the JPY lost some of their gains but remained higher against major rivals at the end of the week, benefiting from their safe-haven status in the face of mounting concerns over the potential financial fallout from Dubai's debt problems. The selling occurred as investor sentiment fell in the wake of news that Dubai World, the Gulf emirate's main conglomerate, asked creditors for a six-month stay on debt repayments of $59 billion.
Gold fell in New York and London as gains in…
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Added by Forex Daily Digest on November 27, 2009 at 9:43am —
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The USD lost ground against major pairs, which allowed the EUR to again obtain more than $1.50 as overall economic sentiment rebounded and the U.S. Federal Reserve showed no misgivings about the U.S. dollar’s decline. The broadly weaker USD also broke parity with the Swiss franc for the first time since July 2008. Gold climbed to a record in London and New York on a further drop by the USD and on a report that India may buy more bullion for its central-bank reserves.
China's…
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Added by Forex Daily Digest on November 25, 2009 at 8:35am —
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The USD experienced its biggest fall in two weeks against major counterparts, after a Federal Reserve official's call to extend some of the central bank's stimulus measures suggested interest rates will remain low indefinitely. James Bullard, president of the Federal Reserve Bank of St. Louis, made the comments. He'll have a vote on the Fed panel charged with setting policy on U.S. interest rates next year. A broad-based stock rally continued Monday afternoon following rate-related comments…
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Added by Forex Daily Digest on November 24, 2009 at 8:30am —
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U.S. dollar forecasters are predicting that the world’s reserve currency will continue to fall even after the Fed starts to raise interest rates, which policy makers believe is still an “extended period” away. Standard Chartered Plc, Aletti Gestielle SGR, HSBC Holdings Plc and Scotia Capital Inc. say the USD will depreciate as much as 7.1 percent against the EUR. About $12 trillion of fiscal and monetary stimulus, the world’s lowest borrowing costs and a record $4 trillion of government bond…
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Added by Forex Daily Digest on November 23, 2009 at 9:38am —
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The USD advanced, heading to its first weekly gain in three weeks against higher-yielding currencies in Australia, New Zealand and the U.K. as a week's worth of official commentary and economic data has dampened expectations of a strong rebound from the U.S. recession. Thin trading and lack of major economic data in Europe and the United States, analysts looked at possible steps being considered by emerging-market countries that would further dampen hopes for stronger growth in less developed…
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Added by Forex Daily Digest on November 20, 2009 at 3:01pm —
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The JPY and USD strengthened against the EUR as Asian and European stock markets fell, discouraging demand for higher-yielding assets. The JPY increased against all of its 16 most-traded counterparts as equities weakened. The NZD was headed for the worst performance against the USD in the past month among major currencies as the nation’s main opposition party ended its support for the central bank’s priority of containing inflation. New Zealand’s main opposition Labor Party will no longer…
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Added by Forex Daily Digest on November 19, 2009 at 9:01am —
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