The Forex Daily Digest – June 25, 2009

The equity markets finished mixed yesterday after a stronger-than-forecast durable-goods orders report and the statement from the Federal Reserve that hinted it would not raise interest rates anytime soon. Investors have lowered their rate-hike expectations over the last month or so. The dollar advanced against the Japanese yen but fell against the euro. Today's U.S. economic calendar includes data on weekly initial jobless claims as well as the final estimate of first-quarter Gross Domestic Product.

The USD experienced some gains against the JPY for the first time in four days and increased against the euro after the Fed left its $1.75 trillion bond-purchase program unchanged. The Swiss franc dropped against all of the major currencies on speculation the central bank sold the currency to support the economy. And Treasuries lost ground for the first time in four days, driving the 10-year note’s yield up to nealry 3.70 percent.

Gold increased in value for a second straight day in New York and London on the belief that the Fed will maintain a Treasury-purchase program that could stimulate inflation. Economists expect the Federal Reserve to maintain its $300 billion program of Treasury purchases.

The CAD found some strength after the Organization for Economic Cooperation and Development increased its projection for Canada’s economic growth and a U.S. government report showing an unexpected jump in durable-goods orders. But the CAD was destabilized after the Fed left its bond-purchase program unchanged, boosting the appeal of the USD as a shelter.

Yesterday, Moody’s Investors Service said the dollar’s uncontested ranking as the world’s reserve currency is supporting the U.S.’s Aaa credit rating even as the U.S. budget deficit is expected to quadruple this year alone. The financial well being of the U.S. economy is being closely examined by its creditors as bailouts and stimulus plans enlarge a budget deficit forecast to climb to a record $1.85 trillion this year. China and Russia, the largest foreign holders of the debt, have revealed that they may diversify some of their reserves. According to a Moody’s economist, even if the U.S.’s ratio of debt to GDP were to surpass 100 percent, the U.S. rating would still be safe as long as borrowing costs would continue to stay low.

Meantime, the AUD and the NZD increased for a third straight day after stocks climbed and the International Monetary Fund said it believed Australia’s economy will most likely improve a bit earlier than initially predicted. The AUD gained against all major currencies after the Australian Treasury Secretary announced that his nation’s economic growth will be “somewhat stronger” in the 12 months ending June 30th because of government stimulus programs.

I urge you to keep up with the daily setup programs that our JDfn traders host daily through the PremiereTrade AI software. These informative Internet broadcasts can mean the difference between success and failure. The reason – information. In today’s world, no matter what you want to accomplish, you need information and education. Discovering what their thoughts are on the morning setups is imperative in understanding the daily direction of the Forex market. All it takes is a bit of your time to discover how you can become a successful and profitable Forex trader. Times are tough; many people are using the Forex to supplement their incomes. It takes an effort on your part. Get the education you need through the JDfn Internet broadcasts, in house training classes, an educational DVD set or individualized coaching sessions. It’s all available to you through the JDfn. Get started today.

Happy Trading –

James Dicks