The USD came off lows early after government reports showed U.S. consumer prices rose more than expected last month while construction of new homes fell sharply last month. The consumer price index has fallen 0.2% in the past year. The core CPI - which excludes food and energy prices in order to get a better look at underlying inflation - increased 0.2% in October, led by higher prices for cars and trucks, due in part to the unwinding of the government's cash-for-clunkers deal.
In…
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Added by Forex Daily Digest on November 18, 2009 at 10:05am —
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The USD ground versus the EUR and high-yielding commodity currencies as equity markets weakened around the world, indicating a retreat in appetite for risk among investors. The USD lost some of its earlier gains against the JPY and EUR after data showed smaller than expected gains in producer prices last month, adding to the view that U.S. interest rates will stay low for some time yet.
Wholesale prices rose less than expected in October as the weak economy keeps inflation pressures…
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Added by Forex Daily Digest on November 17, 2009 at 9:28am —
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The USD remained under pressure today, after the government reported U.S. retail sales rose more than expected in October. The dollar also fell against most of its major counterparts as Japan’s better-than-anticipated economic growth forecast in the third quarter encouraged demand for higher yielding assets.
U.S. retail sales rose 1.4% in October, more than analysts expected. A large downward revision to September's sales offset the upside surprise. Separately, the New York Federal…
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Added by Forex Daily Digest on November 16, 2009 at 9:30am —
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The USD has lost ground, with strategists attributing the modest weakness to market participants taking profits on the dollar's recent bounce. A modest return to risk appetite was seen triggering some weakness in the USD. The EUR was mixed, edging up a bit on the USD but falling against the JPY and the GBP as foreign-exchange traders reacted to data on euro-zone economic growth. The third-quarter data confirmed the 16-nation region that shares the single currency returned to growth after five…
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Added by Forex Daily Digest on November 13, 2009 at 8:30am —
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The USD rebounded against the EUR, pulling an index on the dollar away from a new 15-month low, as U.S. equity markets pared some of the strong gains earlier in the session and led traders to reconsider bets on riskier assets. The GBP was the big mover, falling more than 1% versus the dollar as officials talked down the currency and hinted at the possibility of further quantitative easing.
China will probably let the yuan start rising against the dollar in early 2010 after the…
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Added by Forex Daily Digest on November 12, 2009 at 8:30am —
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Today is Veterans Day in the United States and a bank holiday. Although the U.S. equities markets are open, the bond markets are closed. Also most city, federal and state courts and offices are closed today in observance of Veterans Day. The Post Office is also closed today.
The USD fell against most major currency rivals except the GBP, facing pressure as traders showed renewed appetite for risk assets and a "carry-trade" strategy centered on selling the dollar. Equity markets were…
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Added by Forex Daily Digest on November 11, 2009 at 10:00am —
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The dollar rose from almost a 15- month low against the currencies of major U.S. trading partners as a fall in U.S. stock-index futures slowed demand for higher- yielding assets. Sterling fell against the USD as Fitch Ratings said the U.K.’s credit rating is the most at risk among top-rated nations. The International Monetary Fund said in a report that the USD may still be overvalued as traders use the currency to fund carry trades. The IMF said that the dollar “has moved closer to medium-run…
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Added by Forex Daily Digest on November 10, 2009 at 10:00am —
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Gold futures rose, after the U.S. government reported the unemployment rate in October, topped the 10% mark for the first time in 26 years, pressuring stocks and lifting safe-haven demand for the USD against the JPY. The dollar fell against the JPY after the October Nonfarm Payrolls report was released. Analysts said the report was disappointing and boosted risk aversion trade.
The unemployment rate in the U.S. increased to 10.2 percent in October and employers cut more jobs than…
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Added by Forex Daily Digest on November 6, 2009 at 9:26am —
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The USD fell against the JPY and the GBP, though the dollar moved up against the EUR ahead of a rate decision in Frankfurt. The GBP gained ground following the Bank of England's decision to expand its quantitative easing program by 25 billion pounds. Some in the market had expected an even bigger expansion of the program that buys up gilts and other assets. Interest rates in the U.K. were kept at a record low of 0.5%. Yesterday, the USD lost some ground against major counterparts after the…
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Added by Forex Daily Digest on November 5, 2009 at 8:30am —
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The USD traded lower, pulled down as investors showed renewed appetite for equities and risky assets, although many traders appeared satisfied to stay on the sidelines ahead of the conclusion of the U.S. Federal Reserve's two-day policy meeting. The Fed's policy committee will finish its two-day meeting later today. An announcement with policy makers' outlook for rates and the economy is expected at about 2:15 p.m. (ET) this afternoon. The overwhelming consensus is that the Fed will keep the…
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Added by Forex Daily Digest on November 4, 2009 at 8:30am —
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The USD hit a one-month high against a currency basket as investors retreated from risk assets on jitters over banks and braced for central bank meetings in the United States, euro zone and UK. Sterling tumbled to a one-week low against the dollar after the UK Treasury announced a shake-up of British banks, which raised concerns about the financial sector.
Federal Reserve officials meeting this week must weigh improving economic data against the risk, reinforced by a persistently…
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Added by Forex Daily Digest on November 3, 2009 at 9:12am —
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The USD gained against major counterparts at the end of last week for the sixth day in the past seven after a government report showed U.S. consumer spending fell in September, threatening the ability of the nation's economy to continue expanding and weighing on equities.
FOREX traders largely ignored a private report showing the Chicago purchasing managers index rose more than expected, to a reading of 54.2 in October from 46.1 in September. Levels over the 50 mark indicate more…
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Added by Forex Daily Digest on November 1, 2009 at 8:59pm —
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The USD weakened against the EUR after government data showed the U.S. economy returned to growth in the third quarter, reducing the dollar's safe-haven allure and sending investors elsewhere for better returns. The Labor Department reported that the U.S. economy grew at a 3.5 percent annual rate, the fastest pace since the third quarter of 2007, according to preliminary data, and slightly better than forecasts of a 3.3 percent rise.
China and the United States agreed to deal with a…
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Added by Forex Daily Digest on October 30, 2009 at 8:04am —
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The USD extended its gains after economic data showed that orders for U.S.-made durable goods rose 1% in September. Data also showed U.S. new home sales fell in September. The report showed sales of newly-built home declined unexpectedly last month, falling at an annual rate of 3.6 percent to 402,000. The dollar had advanced earlier against all its major rivals except the JPY, as falling global equity markets led investors to seek safety in the dollar and cut exposure to assets perceived as…
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Added by Forex Daily Digest on October 29, 2009 at 7:46am —
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The USD edged lower as stock markets stabilized, prompting some to move away from the perceived safety of the USD. The EUR extended gains against the USD, after data showed U.S. home prices for August increased for a fourth straight month. The Case-Shiller Home Price Index for August showed that prices improved. In the survey's 20-city composite index, home prices increased at a better-than-anticipated 1.2%, although they are still down 11.3% from August 2008. And consumer confidence in the…
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Added by Forex Daily Digest on October 28, 2009 at 8:21am —
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The USD hit a 14-month low against the EUR as an advance in Asian stock markets and signs that the global economy is recovering lessened demand for the dollar as a safe haven. The USD fell against 11 of its 16 major counterparts. South Korea’s won strengthened after its economy grew at the fastest pace in seven years. The JPY and EUR gained after an official Chinese paper said the nation should boost reserves in the currencies.
Nobel laureate Paul Krugman said China is devaluing its…
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Added by Forex Daily Digest on October 27, 2009 at 7:35am —
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The USD continued its winning streak against the JPY and gained on the GBP and other major currencies as U.S. equities declined on Friday, taking the steam out of investors who had been running toward riskier assets. The USD also rose for a third straight day against the EUR, which hit a 14-month high earlier in the week. The USD may remain under pressure as the Federal Reserve lags behind other central banks in increasing borrowing costs.
An assortment of positive euro zone data…
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Added by Forex Daily Digest on October 25, 2009 at 5:45pm —
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The USD increased against the EUR on speculation that China will withdraw fiscal and monetary stimulus and as U.S. initial jobless claims increased more than forecast, reducing risk demand. A 13.9% year-on-year increase in Chinese industrial production and one analyst said an 8.9% rise in third-quarter gross domestic product, while impressive, was "not quite as strong as some had been hoping.” The U.S. currency may remain under pressure as the Federal Reserve trails other central banks in…
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Added by Forex Daily Digest on October 23, 2009 at 7:33am —
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The dollar fell against the JPY in Asia due to profit-taking, but it may rise briefly later in the day as Japanese fund players are expected to launch their buying for new trust funds. The dollar weakened to the lowest level in 14 months against the euro as signs the global economy is recovering boosted demand for higher-yielding assets.
The CAD fell for a second day as declines in global stocks and crude oil, the nation’s largest export, slowed investors’ appetite for riskier…
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Added by Forex Daily Digest on October 22, 2009 at 7:39am —
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The USD reentered positive territory after experiencing a 14-month low against a basket of currencies as a result of policymaker comments, but options-related buying kept it from pushing through $1.50 against the EUR and 90 JPY. The dollar was also affected by the U.S. equities markets, as well as data showing continued weakness in the U.S. housing sector. The USD has been under sustained pressure this year due to expectations of low U.S. interest rates and questions about its status as the…
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Added by Forex Daily Digest on October 20, 2009 at 4:34pm —
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