The Forex Daily Digest – July 30, 2009
The USD posted some hefty gains after the government reported that U.S. durable-goods orders fell more than expected and caused the stock market to lose ground while increasing demand for the USD as a safe haven. Commerce said orders for U.S.-made durable goods dropped 2.5% on weaker demand for autos, aircraft and computers. Economists anticipated a more modest 0.6% drop. May orders were revised down from a rise of 1.8% to 1.3%.
Gold futures fell, joining a broad-based sell-off in commodities, as a stronger USD reduced gold's appeal as a hedge against a weaker currency. Dollar strength tends to weigh on dollar-denominated commodities such as gold and oil because it makes them more expensive for holders of other currencies.
U.S. government information showed crude oil inventories increased 5.1 million barrels in the week to July 24th, countering expectations for a decline. U.S. fuel consumption dropped 4.1 percent against year-ago levels over the past four weeks, while distillate stocks rose to the highest level in nearly 25 years.
Canada's currency fell to its lowest level versus the USD in a week as prices for oil, a key Canadian export, dropped sharply and shattered investors' appetite for risk. The slide in the CAD pulled it further from the near 10-month high it hit earlier in the week. The CAD selloff lacked trader sincerity and did not cause much distress among market experts.
In late day trading, the EUR hit $1.4046, after briefly dropping to a new low for the day at $1.4086 in the wake of the durable goods report. The GBP bought $1.6374. The USD also strengthened against the yen. Helping support the USD, the president of the New York Fed, said concerns that the central bank will allow inflation get out of control are misplaced. He said the Fed has the tools to keep its expanded balance sheet from generating a spike in prices.
It will be a very quiet economic day in the US. The only major report scheduled is Initial Jobless Claims for the week ending July 25th. Last week it came in at 554 thousand and experts are expecting an increase this week.
Look for earnings today from ExxonMobil, Sony, MasterCard, Disney, CIGNA, International Paper, Genworth Financial, Barrick Gold, Monster Worldwide, Eastman Kodak, Kellogg, MetLife, Rolls Royce Group, Brinks, and Wynn Resorts.
If you haven’t done so already, I urge you to sign up for the new James Dicks Forex 5.0 Alerts. My team of professional Forex traders is here to help you improve your trading skills. We know when the market is moving and when you subscribe to the alerts- you will too. Using next generation proprietary trade recognition software, our traders are able to trade with the utmost confidence and provide you with the information you need to make a knowledgeable decision. I urge you to sign up by calling 1-888-626-8660. And don’t forget to listen to The James Dicks Forex Alert Show on JDfn from 1:00 pm to 1:30 pm daily.
Happy Trading
James Dicks
Gold futures fell, joining a broad-based sell-off in commodities, as a stronger USD reduced gold's appeal as a hedge against a weaker currency. Dollar strength tends to weigh on dollar-denominated commodities such as gold and oil because it makes them more expensive for holders of other currencies.
U.S. government information showed crude oil inventories increased 5.1 million barrels in the week to July 24th, countering expectations for a decline. U.S. fuel consumption dropped 4.1 percent against year-ago levels over the past four weeks, while distillate stocks rose to the highest level in nearly 25 years.
Canada's currency fell to its lowest level versus the USD in a week as prices for oil, a key Canadian export, dropped sharply and shattered investors' appetite for risk. The slide in the CAD pulled it further from the near 10-month high it hit earlier in the week. The CAD selloff lacked trader sincerity and did not cause much distress among market experts.
In late day trading, the EUR hit $1.4046, after briefly dropping to a new low for the day at $1.4086 in the wake of the durable goods report. The GBP bought $1.6374. The USD also strengthened against the yen. Helping support the USD, the president of the New York Fed, said concerns that the central bank will allow inflation get out of control are misplaced. He said the Fed has the tools to keep its expanded balance sheet from generating a spike in prices.
It will be a very quiet economic day in the US. The only major report scheduled is Initial Jobless Claims for the week ending July 25th. Last week it came in at 554 thousand and experts are expecting an increase this week.
Look for earnings today from ExxonMobil, Sony, MasterCard, Disney, CIGNA, International Paper, Genworth Financial, Barrick Gold, Monster Worldwide, Eastman Kodak, Kellogg, MetLife, Rolls Royce Group, Brinks, and Wynn Resorts.
If you haven’t done so already, I urge you to sign up for the new James Dicks Forex 5.0 Alerts. My team of professional Forex traders is here to help you improve your trading skills. We know when the market is moving and when you subscribe to the alerts- you will too. Using next generation proprietary trade recognition software, our traders are able to trade with the utmost confidence and provide you with the information you need to make a knowledgeable decision. I urge you to sign up by calling 1-888-626-8660. And don’t forget to listen to The James Dicks Forex Alert Show on JDfn from 1:00 pm to 1:30 pm daily.
Happy Trading
James Dicks
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