The Forex Daily Digest – August 14, 2009
The USD showed weakness against most major counterparts, undercut by disappointing U.S. July retail-sales figures, while data showed Germany and France unexpectedly returned to growth in the second quarter. Currency markets also digested this week’s Federal Reserve's announcement to leave interest rates unchanged and to gradually slow its purchases of Treasuries.
The Federal Reserve Bank of New York announced that U.S. monetary authorities did not intervene in foreign exchange markets in the second quarter as an improving global economic outlook pressured the U.S. dollar. The dollar's trade-weighted exchange value fell 6.6 percent in the three months from April to June as measured by the Federal Reserve Board's major currencies index.
Yesterday, the Labor Department reported that first-time claims for state unemployment benefits ticked up 4,000 to 558,000 in the week ending Aug. 8th. Economists were expecting initial claims to drop to 543,000. Compared with a year earlier, initial claims were up 27%, while continuing claims were up 83%. The four-week average of new claims, which can smooth out distortions, rose 8,500 to 565,000.
Gold futures were up, as disappointing U.S. retail sales and upbeat economic data from Europe pushed down the USD. The dollar, which has been used as a safe haven currency, has tended to be inversely correlated to gold prices. Economic data in Europe showed an unexpected return to economic growth in Germany and France, helping the EUR rise against the USD.
The CAD reached the strongest level this week as crude oil and stocks rose amid signs the global recession is easing, increasing the appeal of currencies linked to growth. The AUD and NZD gained, approaching their highest levels since September, after reports showing the euro region’s economic contraction may be improving which boosted demand for currencies tied to global growth.
And, the Federal Reserve said the U.S. M-2 money supply fell by $42.0billion in the week of August 3rd to $8,323.6 billion. The Fed reported the four-week moving average of M-2 was $8,341.0 billion vs. $8,347.4 billion in the previous week.
Economic reports scheduled for release today include the Consumer Price Index for July, Capacity Utilization and Industrial Production for July and preliminary look at the University of Michigan Consumer Sentiment report for August.
I hope you were able to listen to this week’s webinar with our Senior National Trainer, Adam Horak. That’s just one example of how JDfn can develop your Forex education and help you become a better and more profitable trader. Obtaining the knowledge from our team of expert traders will help you confidently trade the largest global market available today. The liquidity and the 24-hour availability of the FOREX market make it a solid investment opportunity for you, no matter which way the stock market or the economy is moving. PremiereTrade®AI has a learning option for every trader type. With a quick and simple phone call, we can share these details with you and direct you on the path to becoming a Forex trader. Call 1-800-474-8079 - Take advantage of our entire line of FOREX training products. Call Today.
Hope you have a profitable day today and a great weekend….happy trading,
James Dicks
The Federal Reserve Bank of New York announced that U.S. monetary authorities did not intervene in foreign exchange markets in the second quarter as an improving global economic outlook pressured the U.S. dollar. The dollar's trade-weighted exchange value fell 6.6 percent in the three months from April to June as measured by the Federal Reserve Board's major currencies index.
Yesterday, the Labor Department reported that first-time claims for state unemployment benefits ticked up 4,000 to 558,000 in the week ending Aug. 8th. Economists were expecting initial claims to drop to 543,000. Compared with a year earlier, initial claims were up 27%, while continuing claims were up 83%. The four-week average of new claims, which can smooth out distortions, rose 8,500 to 565,000.
Gold futures were up, as disappointing U.S. retail sales and upbeat economic data from Europe pushed down the USD. The dollar, which has been used as a safe haven currency, has tended to be inversely correlated to gold prices. Economic data in Europe showed an unexpected return to economic growth in Germany and France, helping the EUR rise against the USD.
The CAD reached the strongest level this week as crude oil and stocks rose amid signs the global recession is easing, increasing the appeal of currencies linked to growth. The AUD and NZD gained, approaching their highest levels since September, after reports showing the euro region’s economic contraction may be improving which boosted demand for currencies tied to global growth.
And, the Federal Reserve said the U.S. M-2 money supply fell by $42.0billion in the week of August 3rd to $8,323.6 billion. The Fed reported the four-week moving average of M-2 was $8,341.0 billion vs. $8,347.4 billion in the previous week.
Economic reports scheduled for release today include the Consumer Price Index for July, Capacity Utilization and Industrial Production for July and preliminary look at the University of Michigan Consumer Sentiment report for August.
I hope you were able to listen to this week’s webinar with our Senior National Trainer, Adam Horak. That’s just one example of how JDfn can develop your Forex education and help you become a better and more profitable trader. Obtaining the knowledge from our team of expert traders will help you confidently trade the largest global market available today. The liquidity and the 24-hour availability of the FOREX market make it a solid investment opportunity for you, no matter which way the stock market or the economy is moving. PremiereTrade®AI has a learning option for every trader type. With a quick and simple phone call, we can share these details with you and direct you on the path to becoming a Forex trader. Call 1-800-474-8079 - Take advantage of our entire line of FOREX training products. Call Today.
Hope you have a profitable day today and a great weekend….happy trading,
James Dicks
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