The Dow Jones Industrial Average held above the 9000 mark, but stocks finished mixed last week as shares of Microsoft and Amazon were beaten down on earnings news. Treasury prices fell on Friday, finishing up a second week of declines, as the government gets ready to auction a record amount of U.S. debt and demand for safe-haven assets declines. The Treasury Department said last week that it will offer a total of $115 billion in notes and Treasury Inflation Protected Securities next week. That…
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Added by Forex Daily Digest on July 27, 2009 at 8:02am —
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The Dow crossed the 9,000 mark at the close yesterday, pushing the USD lower against all of the higher yielding currencies. Although earnings have been mixed during this second quarter season, risk appetite apparently has returned. Moderately strong U.S. economic data and the Bank of Canada's comment that the country's recession is ending during this quarter has added to the optimistic tone in the currency market.
If the Bank of Canada is right and their nation’s recession is coming…
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Added by Forex Daily Digest on July 24, 2009 at 7:30am —
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Fed Chairman Ben Bernanke traveled to Capitol Hill again yesterday testifying on the details about how the Fed, which has pumped hundreds of billions of dollars into the U.S. financial system, would undo its rescue programs. But at a congressional hearing on Wednesday, legislators appeared to be less concerned in the technical details of the Fed's exit strategy than they were about what tools the Fed has to fix the unrelenting housing and labor markets.
The New York Federal Reserve…
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Added by Forex Daily Digest on July 23, 2009 at 7:46am —
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U.S. stock markets gained on a late run yesterday as Caterpillar and Merck helped the Dow Jones Industrial Average to its seventh straight gain. The Dow rose to its highest close since Jan. 6th.
The USD has a good day against most other major currencies, as comments by Fed Chairman Bernanke eased anxiety that policy-makers would not act decisively to head off inflation produced by efforts to counter the credit crisis. One analyst said after Bernanke’s presentation that the Fed…
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Added by Forex Daily Digest on July 22, 2009 at 7:59am —
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The U.S. stock market ended the day higher but the USD took a few hits as a string of solid corporate earnings encouraged investors to jump back into high-yielding currencies and other risky assets. Some analysts believe the EUR appeared to be overextended, especially after it failed to add to its gains following a positive report on U.S. leading indicators.
The EUR and the AUD are showing an impressive run, which will ultimately leave them vulnerable to profit-taking if upcoming…
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Added by Forex Daily Digest on July 21, 2009 at 8:00am —
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As we start another week, it’s looking very thin in economic reports. On Tuesday five of the Dow 30 will be reporting their earnings numbers. Also this week, Fed Chairman Ben Bernanke will present his semi-annual testimony on monetary policy to Congress, speaking before the House Financial Services Committee tomorrow and the Senate on Wednesday.
The EUR experienced some relatively serious price action last week. Fundamental traders are thanking the market’s reaction to earnings and…
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Added by Forex Daily Digest on July 20, 2009 at 7:55am —
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The USD ended slightly weaker against most widely traded currencies yesterday, as more optimistic economic data and corporate earnings results continued to support risk appetites, even if it was at a lower level of intensity than earlier this week. Increased global acceptance for risk - which usually heightens other currencies at the expense of the safe-haven USD - remained in effect because of economic events like the solid second -quarter earnings announced by J.P. Morgan Chase, and China's…
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Added by Forex Daily Digest on July 17, 2009 at 7:26am —
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The USD traded near a two-week low against the EUR after stocks rallied on the prospects for the economy and corporate earnings, discouraging demand for the safest assets. The JPY dropped the most against the EUR since May after a report showed U.S. industrial production fell in June less than economists anticipated. Intel Corp.’s revenue outlook exceeded analysts’ estimates. The CAD rose to a one- month high against the greenback as commodities advanced.
The Dollar Index, which is…
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Added by Forex Daily Digest on July 16, 2009 at 7:52am —
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It was announced today that China's foreign exchange reserves increased at a record pace in the second quarter to top the $2 trillion mark for the first time, even as the nation's exports remained under pressure during the period because of weak global demand. The Chinese mainland's foreign exchange reserves, the largest in the world, expanded to $2.13 trillion at the end of last month, as a record $178 billion were added to the reserves during the April to June period.
This after it…
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Added by Forex Daily Digest on July 15, 2009 at 8:02am —
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A more relaxed global risk environment caused the USD to suffer moderate losses against most currencies except the JPY, although currency markets remained lightly traded. They continue to be marked by a trend toward uncertain, sideways trading. The U.S. and most other major stock exchanges strengthened yesterday, a typical indicator of better overall risk appetites which increased the demand for the other currencies, as investors set up for a series of important earnings reports from major…
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Added by Forex Daily Digest on July 14, 2009 at 7:38am —
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The week begins with a number of scheduled economic reports slated for release as well as anticipation of policy moves by the various world governments in the wake of the G8 summit last week. The USD increased in value after China said the dollar may continue dominating global trade and ruled out any impulsive changes to its foreign-exchange reserves.
The dollar gained against the AUD, JPY and CHF after the deputy head of the international payment department at the State…
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Added by Forex Daily Digest on July 13, 2009 at 7:30am —
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It’s been a busy week and the G8 comes to an end in Italy. The G8 leaders of both developed and emerging nations evaded a debate over the USD’s role in the global economy as they agreed not to devalue their currencies to support their own exports.
Officials from Brazil, India, China and Russia pushed for consideration of alternative reserve currencies, the verbiage in their joint statement on foreign exchange reaffirmed an agreement from the April summit of the Group of 20. Brazilian…
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Added by Forex Daily Digest on July 10, 2009 at 7:53am —
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Forex traders watched the Group of Eight summit being held in Italy very closely. Analysts are anticipating the G8 leaders to center their attention on ending the global recession, while improving credit and trade instead of focusing on the status of the USD. International reports out of the summit said the final statement from the G8 will detail factors that are hoped to stabilize the current economic situation.
Through it all, questions about the role of the USD as the world's…
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Added by Forex Daily Digest on July 9, 2009 at 8:22am —
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Earnings season in the U.S. now has the attention of equity investors. The next earnings season gets underway today when Alcoa (AA) reports its earnings figures for the most recent quarter after the closing bell on Wall Street. But this time around, the Foreign Exchange may also have a large impact as to how these earnings look. The fall in the USD was blamed for helping the increase in energy prices, but it will also likely play a role for some companies, providing stock investors with a…
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Added by Forex Daily Digest on July 8, 2009 at 7:48am —
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As investors continue to search for answers about a potential second half global economic recovery, many are flocking to the USD for refuge and bolstering its strength in the process. As the global stock markets take a beating, the USD has experienced support. The continued muscle for the USD will depend on the upcoming earnings season (which begins tomorrow when Alcoa releases their numbers after the closing bell) to determine whether investor confidence will be supported by the numbers - or…
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Added by Forex Daily Digest on July 7, 2009 at 8:51am —
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Holidays are over and it’s time to get back to business. The equities are showing some weakness today as global investors concern themselves with the shape of corporate earnings in the second half. Also, investors seem to be less enthusiastic to hold certain assets which are creating a modest refuge of support for the USD.
The USD traded within thin ranges against major currency counterparts, advancing on the euro but losing a bit to the yen. Normally, the JPY also benefits from…
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Added by Forex Daily Digest on July 6, 2009 at 8:22am —
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The Forex markets are trading today but as is the case when the U.S. takes a holiday, the rest of the world finds it difficult to attract any noticeable activity.
European shares traded lower with U.S. stock exchanges closed for the July 4th holiday, and utilities and metals producers are also trading lower. Data released today showed the second straight month of expansion for the British services sector in June, while euro-zone retail sales fell 0.4% in May.
The dollar…
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Added by Forex Daily Digest on July 3, 2009 at 1:00pm —
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As stocks in the U.S. began the new quarter with stable gains, market analysts are pointing to an indecisive economic climate in expressing their predictions for just how the market will do in the second half.
The Non-Farm Payrolls report showed a loss of 467,000 jobs in June, the unemployment rate rose and hourly earnings stagnated. These numbers are offering very few bits of data that the Obama administration’s stimulus package is helping the weak labor market. The payroll decline…
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Added by Forex Daily Digest on July 2, 2009 at 9:00am —
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The U.S. invested its way to an amazing second-quarter performance even though stocks' spring recovery slowed down weeks ago. The major stock indexes managed to finish the second quarter with double-digit percentage gains. But whether the market salvages its drive in the July-September period or slows again will depend on what U.S. companies have to say in the next few weeks — not just about their own earnings prospects, but the U.S. economy's outlook too.
The JPY traded lower versus…
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Added by Forex Daily Digest on June 30, 2009 at 8:00pm —
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There was good news for the dollar this morning. The USD increased after China said the dollar may continue to control global trade and ruled out any “sudden” changes to its foreign-exchange reserves. Brazil, Russia, India and China are insisting they have a bigger say in the operation of global financial institutions. Russian and China, which has almost $2 trillion of foreign-exchange reserves, called for the creation of alternatives to the USD as a reserve currency.
The euro was…
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Added by Forex Daily Digest on June 30, 2009 at 8:00am —
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