The Forex Daily Digest – August 26, 2009
The USD experienced a bit of recovery, rebounding from earlier losses, as a drop in crude oil prices restricted gains in stocks, and increased safe-haven demand for the dollar. The USD came under increased pressure following reports that U.S. home prices were up in June and consumer confidence rose in August.
In another development widely accepted by investors, President Obama announced that he plans to reappoint Fed Chairman Ben Bernanke for a second four-year term as chairman of the Federal Reserve. In a short statement, Obama said Bernanke's background, temperament, courage and creativity helped prevent another Great Depression.
Bernanke is a close colleague of Treasury Secretary Timothy Geithner. The two of them worked together last September when Lehman Brothers collapsed. Geithner was the president of the New York Federal Reserve Bank during that crisis.
Some currency analysts believe that some countries that have benefited from recovering commodities prices are getting ready to raise their benchmark interest rates before the United States, Europe and some other major, developed countries. Those rate hikes are likely to give fresh momentum to five-month rallies to the AUD, the CAD and the NZD, while weighing on the USD, the JPY and, to a lesser extent, the EUR.
The USD is expected to extend its gains against the CAD, after a drop in oil prices reduced demand for the currencies of commodity producers. The CAD also fell as the, deputy governor of the Bank of Canada, said in a speech, that the strength of the Canadian currency presented an “important risk” to growth. The CAD advanced 20 percent from a four-year low reached in March. The bank repeated its conditional commitment to keep rates at their current low until mid-2010 and analysts say the bank could hold rates steady for even longer if the currency’s strength persists and delays recovery.
On the economic calendar, you can expect the Durables Goods report for July which is expected to improve from last months negative 2.5 percent. Also, the July New Homes Sales report will be released today and the usual Crude Inventories Report.
Scheduled earnings today include Canadian Imperial Bank of Commerce, Guess, Brown Shoe Company, Inc., Isle of Capri Casinos, Charming Shoppes, Dollar Tree, Heineken N.V., Coldwater Creek, Tivo Inc, and Williams-Sonoma.
I hope you’ve checked out the new James Dicks Forex Alerts! We know how your busy life is and that can make it difficult to stay up-to-date on the latest Forex market conditions. That’s why we’ve introduced the latest version of the James Dicks FOREX™ 5.0 Alerts. Our alerts are sent via the James Dicks Instant Alerts Messenger, including an advanced feature that allows mobile equipment such as laptops, PDA’s, pagers and cell phones to receive the alerts in real time. This is a huge plus for traders that are away from the news as it happens. Just go to www.JDForexAlerts.com and sign up for a risk-free 30 day trial. And be sure to listen to The James Dicks Forex Alert Show through your AI software…Monday through Friday at 1:00 pm (Eastern Time).
Happy Trading,
James Dicks
In another development widely accepted by investors, President Obama announced that he plans to reappoint Fed Chairman Ben Bernanke for a second four-year term as chairman of the Federal Reserve. In a short statement, Obama said Bernanke's background, temperament, courage and creativity helped prevent another Great Depression.
Bernanke is a close colleague of Treasury Secretary Timothy Geithner. The two of them worked together last September when Lehman Brothers collapsed. Geithner was the president of the New York Federal Reserve Bank during that crisis.
Some currency analysts believe that some countries that have benefited from recovering commodities prices are getting ready to raise their benchmark interest rates before the United States, Europe and some other major, developed countries. Those rate hikes are likely to give fresh momentum to five-month rallies to the AUD, the CAD and the NZD, while weighing on the USD, the JPY and, to a lesser extent, the EUR.
The USD is expected to extend its gains against the CAD, after a drop in oil prices reduced demand for the currencies of commodity producers. The CAD also fell as the, deputy governor of the Bank of Canada, said in a speech, that the strength of the Canadian currency presented an “important risk” to growth. The CAD advanced 20 percent from a four-year low reached in March. The bank repeated its conditional commitment to keep rates at their current low until mid-2010 and analysts say the bank could hold rates steady for even longer if the currency’s strength persists and delays recovery.
On the economic calendar, you can expect the Durables Goods report for July which is expected to improve from last months negative 2.5 percent. Also, the July New Homes Sales report will be released today and the usual Crude Inventories Report.
Scheduled earnings today include Canadian Imperial Bank of Commerce, Guess, Brown Shoe Company, Inc., Isle of Capri Casinos, Charming Shoppes, Dollar Tree, Heineken N.V., Coldwater Creek, Tivo Inc, and Williams-Sonoma.
I hope you’ve checked out the new James Dicks Forex Alerts! We know how your busy life is and that can make it difficult to stay up-to-date on the latest Forex market conditions. That’s why we’ve introduced the latest version of the James Dicks FOREX™ 5.0 Alerts. Our alerts are sent via the James Dicks Instant Alerts Messenger, including an advanced feature that allows mobile equipment such as laptops, PDA’s, pagers and cell phones to receive the alerts in real time. This is a huge plus for traders that are away from the news as it happens. Just go to www.JDForexAlerts.com and sign up for a risk-free 30 day trial. And be sure to listen to The James Dicks Forex Alert Show through your AI software…Monday through Friday at 1:00 pm (Eastern Time).
Happy Trading,
James Dicks
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