The Forex Daily Digest – September 9, 2009
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 $1,000-an-ounce mark. Silver and copper also rallied. Historically, gold prices typically rise in September as the start of holiday seasons in the world's biggest gold-consuming countries tends to drive demand.
Crude-oil futures rallied more than four percent, as weakness in the USD increased demand for commodities, and as energy traders looked ahead to the upcoming meeting of the OPEC oil cartel. The Organization of Petroleum Exporting Countries, which accounts for about one-third of the world's oil production, is scheduled to meet today in Vienna. Analysts expect OPEC to keep its production quota unchanged while pressuring member countries to comply with their current production limits.
The Japanese government said in a monthly report that its economy is showing signs of picking up but a record jobless rate masks its near-term prospects, as it left its overall assessment of the economy unchanged. The Japanese economy is expected to pick up as companies finish adjusting inventories and effects of government stimulus take hold and overseas economies improve.
According to a Citigroup recommendation, investors should maintain bets that the CAD will gain because “risks are skewed in favor” of the currency benefiting from the outcome of this week’s Bank of Canada policy meeting. Even though the Canadian central bank is unlikely to raise interest rates at its meeting on Sept. 10th, “risks favor relatively ‘hawkish’ rhetoric” in the statement policy makers will issue. Canada’s central bank held its key overnight rate at a record low 0.25 percent at its last meeting in July, and reiterated plans to leave it there through the second quarter next year.
The AUD and NZD strengthened to the highest level in a year as a rally in oil and metals encouraged investors to purchase commodity- linked currencies. The Aussie climbed for a fifth straight day, gaining as much as 1.2 percent. The Aussie also advanced before retail sales and employment data this week that may intensify speculation the central bank will raise rates as early as October. And New Zealand central bank Governor Alan Bollard may rule out further interest-rate cuts at this week’s monetary policy review amid expectations that the worst recession in three decades is over.
On the economic calendar today, expect the usual Wednesday Crude Inventories report for the week of September 4th and the Fed Beige Book to be released at 2 pm (ET) this afternoon. Scheduled earnings today include Men's Wearhouse, Rex Stores Corporation, Korn Ferry International, ShuffleMaster, Rural/Metro, Smith and Wesson, Talbots, and Zale.
It’s time to get all the information you need to be able to make the crucial decisions as they pertain to your Forex trading activity. There are so many things happening worldwide that will affect your trading accounts. I urge you to listen to the JDfn traders each and every morning and learn from my trader’s experiences. Every morning they offer potential setups forming in the Forex market and I assure you that this is information you need to become successful in your trading account. JDfn traders are here for you – take advantage of their expertise.
Happy Trading,
James Dicks
Gold futures hit an 18-month high, as a weaker dollar boosted gold's investment appeal, but ended the day below the $1,000-an-ounce mark. Silver and copper also rallied. Historically, gold prices typically rise in September as the start of holiday seasons in the world's biggest gold-consuming countries tends to drive demand.
Crude-oil futures rallied more than four percent, as weakness in the USD increased demand for commodities, and as energy traders looked ahead to the upcoming meeting of the OPEC oil cartel. The Organization of Petroleum Exporting Countries, which accounts for about one-third of the world's oil production, is scheduled to meet today in Vienna. Analysts expect OPEC to keep its production quota unchanged while pressuring member countries to comply with their current production limits.
The Japanese government said in a monthly report that its economy is showing signs of picking up but a record jobless rate masks its near-term prospects, as it left its overall assessment of the economy unchanged. The Japanese economy is expected to pick up as companies finish adjusting inventories and effects of government stimulus take hold and overseas economies improve.
According to a Citigroup recommendation, investors should maintain bets that the CAD will gain because “risks are skewed in favor” of the currency benefiting from the outcome of this week’s Bank of Canada policy meeting. Even though the Canadian central bank is unlikely to raise interest rates at its meeting on Sept. 10th, “risks favor relatively ‘hawkish’ rhetoric” in the statement policy makers will issue. Canada’s central bank held its key overnight rate at a record low 0.25 percent at its last meeting in July, and reiterated plans to leave it there through the second quarter next year.
The AUD and NZD strengthened to the highest level in a year as a rally in oil and metals encouraged investors to purchase commodity- linked currencies. The Aussie climbed for a fifth straight day, gaining as much as 1.2 percent. The Aussie also advanced before retail sales and employment data this week that may intensify speculation the central bank will raise rates as early as October. And New Zealand central bank Governor Alan Bollard may rule out further interest-rate cuts at this week’s monetary policy review amid expectations that the worst recession in three decades is over.
On the economic calendar today, expect the usual Wednesday Crude Inventories report for the week of September 4th and the Fed Beige Book to be released at 2 pm (ET) this afternoon. Scheduled earnings today include Men's Wearhouse, Rex Stores Corporation, Korn Ferry International, ShuffleMaster, Rural/Metro, Smith and Wesson, Talbots, and Zale.
It’s time to get all the information you need to be able to make the crucial decisions as they pertain to your Forex trading activity. There are so many things happening worldwide that will affect your trading accounts. I urge you to listen to the JDfn traders each and every morning and learn from my trader’s experiences. Every morning they offer potential setups forming in the Forex market and I assure you that this is information you need to become successful in your trading account. JDfn traders are here for you – take advantage of their expertise.
Happy Trading,
James Dicks
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