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…
Continue
Added by Forex Daily Digest on September 21, 2009 at 6:10am —
No Comments
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…
Continue
Added by Forex Daily Digest on September 17, 2009 at 7:44pm —
No Comments
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…
Continue
Added by Forex Daily Digest on September 16, 2009 at 7:46pm —
No Comments
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,…
Continue
Added by Forex Daily Digest on September 15, 2009 at 9:02pm —
No Comments
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…
Continue
Added by Forex Daily Digest on September 14, 2009 at 8:12pm —
No Comments
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…
Continue
Added by Forex Daily Digest on September 13, 2009 at 6:04pm —
No Comments
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…
Continue
Added by Forex Daily Digest on September 10, 2009 at 9:00pm —
No Comments
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…
Continue
Added by Forex Daily Digest on September 9, 2009 at 7:44pm —
No Comments
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…
Continue
Added by Forex Daily Digest on September 8, 2009 at 8:30pm —
No Comments
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…
Continue
Added by Forex Daily Digest on September 7, 2009 at 8:01pm —
No Comments
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…
Continue
Added by Forex Daily Digest on September 6, 2009 at 8:00pm —
No Comments
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…
Continue
Added by Forex Daily Digest on September 4, 2009 at 7:30am —
No Comments
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…
Continue
Added by Forex Daily Digest on September 3, 2009 at 8:07am —
No Comments
U.S. stocks fell sharply yesterday on fears of increasing U.S. bank failures and anxiety about the lasting strength of the recent equity rally, driving investors into the relative safety of bonds and the U.S. dollar.
The USD had a good day as a drop in stocks led investors to find the shelter of low-yielding currencies. The dollar index stood at 78.705, up from 78.001 in Asian trade and from 78.242 on Monday. The JPY held its own against the dollar, holding on to its gains from…
Continue
Added by Forex Daily Digest on September 2, 2009 at 7:30am —
No Comments
The USD firmed up at the start of yesterday’s trading, as Chinese stocks increased worries about global growth and put pressure on stocks around the world. The USD normally serves as a safe haven, along with other low-yielding currencies such as the JPY.
The JPY increased to a 7-week high against the USD and gained versus other currencies yesterday buoyed by the decisive opposition victory in Japanese elections and as declines in global equities stoked risk aversion. The main…
Continue
Added by Forex Daily Digest on September 1, 2009 at 7:34am —
No Comments
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 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 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 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 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
