After two consecutive days of declines, the Dow finished the day up almost 84 points to 9154.46 yesterday marking its highest close since Nov. 4th. With one day left in the month, the index is up 8.4% and is in line for its best monthly percentage increase since October 2002. The Labor Department reported that initial claims for jobless benefits were up, though the number of continuing weekly claims fell to its lowest level since April 11th.
The USD gave up some midweek gains… Continue
Added by Forex Daily Digest on July 31, 2009 at 7:56am —
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… Continue
Added by Forex Daily Digest on July 30, 2009 at 7:46am —
The USD hit the lowest level this year against the currencies of six major U.S. trading partners as supposition that the global economy is emerging from the recession lessened the demand for a refuge. The AUD advanced to the highest level since September against the USD after the Reserve Bank said the economy may rebound faster than forecast six months ago. The EUR had a seven-week high against the USD.
The United States and China discussed two sensitive topics -- currencies and… Continue
Added by Forex Daily Digest on July 29, 2009 at 8:02am —
The USD was down against other major currencies in European trading this morning. Gold was unchanged.
The Obama administration welcomed Chinese government officials to Washington for two days of intensive and wide-ranging talks, saying the White House wanted to promote cooperation on economic and diplomatic issues. Analysts said government officials in the U.S. and China are more aware due to the global recession that the two superpower economies are closely linked. China's central… Continue
Added by Forex Daily Digest on July 28, 2009 at 7:30am —
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… Continue
Added by Forex Daily Digest on July 27, 2009 at 8:02am —
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… Continue
Added by Forex Daily Digest on July 24, 2009 at 7:30am —
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… Continue
Added by Forex Daily Digest on July 23, 2009 at 7:46am —
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… Continue
Added by Forex Daily Digest on July 22, 2009 at 7:59am —
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… Continue
Added by Forex Daily Digest on July 21, 2009 at 8:00am —
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… Continue
Added by Forex Daily Digest on July 20, 2009 at 7:55am —
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… Continue
Added by Forex Daily Digest on July 17, 2009 at 7:26am —
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… Continue
Added by Forex Daily Digest on July 16, 2009 at 7:52am —
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… Continue
Added by Forex Daily Digest on July 15, 2009 at 8:02am —
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… Continue
Added by Forex Daily Digest on July 14, 2009 at 7:38am —
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… Continue
Added by Forex Daily Digest on July 13, 2009 at 7:30am —
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… Continue
Added by Forex Daily Digest on July 10, 2009 at 7:53am —
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… Continue
Added by Forex Daily Digest on July 9, 2009 at 8:22am —
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… Continue
Added by Forex Daily Digest on July 8, 2009 at 7:48am —
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… Continue
Added by Forex Daily Digest on July 7, 2009 at 8:51am —
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… Continue
Added by Forex Daily Digest on July 6, 2009 at 8:22am —