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Fundamental Archives |
Written by Trade The News |
Dec 31 09 19:13 GMT |
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In currencies: The USD moved off its worst levels following better than expected US weekly claims data which saw Continuing Claims below 5M level for the first time since Feb 2009 complemented with initial claims registering its lowest reading since July 2008. Throughout the week dealers have been questioning whether the recent trend of rising and widening yields would continue to benefit the dollar as the greenback appeared to be at a crossroads and struggling to garner additional strength. EUR/USD back below the 1.44 handle while GBP/USD came off its session high of 1.6235 following its 40+ pip run-up over the last 24 hours from the lows of 1.5835 area. |
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Fundamental Archives |
Written by Interactive Brokers |
Dec 31 09 19:09 GMT |
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A positive end to the calendar year in the form of lower claims for unemployment insurance has left the U.S. government bond market nursing losses as evidence mounts that it won't just be champagne flowing into the New Year. The improving economic tone looks certain to improve in the first quarter of 2010 sending expectations higher for a change in the policy settings from the Fed. At this stage of the game there is little point in trying to assuage investors that the Fed won't shift policy anytime soon - which it won't. The bleeding wounds of capital losses on bonds are evidenced by a one month surge in yields in the last five weeks from 3.15% to 3.89%. Yields are ending the year within a single bad session of reaching the 4% peak witnessed mid-year when investors first panicked about a change of heart from the Fed. |
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Fundamental Archives |
Written by Interactive Brokers |
Dec 31 09 14:19 GMT |
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A sixth consecutive weekly reading below the critical half million mark saw the dollar rally from earlier losses following signs Asian central banks might be switching dollar holdings to euros on the final trading session of 2009. The stronger than anticipated reading for initial claims showed a smaller measure of 432,000 people signed up for unemployment insurance during the week ending last Saturday. Investors were braced for a slight rise after last week's revised 454,000 reading but were treated to a year-end bonus indicating the lowest reading for initial claims in 17 months. The dollar snapped back sharp losses against the British pound having declined to $1.6237 while it has also curbed losses against the euro from $1.4440 earlier to $1.4383. |
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Fundamental Archives |
Written by ecPulse.com |
Dec 31 09 11:56 GMT |
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The year has come to and end dear reader, where the world’s largest economy continues to feel the heat from the worst financial crisis since the Great Depression, however, the U.S. economy started to show some signs of improvement over the past few months. |
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Fundamental Archives |
Written by Trade The News |
Dec 31 09 11:06 GMT |
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Emerging market relief seemed to provide the basis for the price action on Thursday as the year and decade came to a close. The USD entered the European session on a weaker tone attributed to rising risk appetite that Turkey had reached an accord with the IMF. Additionally press speculation that Hungary would meet its 2009 budget deficit target of 3.9% to GDP to meet conditions attached to its €20B IMF led bailout. |
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Fundamental Archives |
Written by AC-Markets |
Dec 31 09 10:59 GMT |
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The final trading day of 2009 has kicked off with a strong equity market performance across Asia (Hang Seng +1.75%, Shanghai Composite +0.45%); sealing the biggest annual gain for Asian stocks since 2003. The rally in equity markets globally has been extremely impressive in the past 12 months; with the MSCI World Index set for a 27% annual gain, and benchmark indices for the BRIC economies up by even more astonishing figures; Brazil’s Bovespa +82.7%, Russia’s RTS +127.1%, India’s Sensex +81.7%, China’s Shanghai Composite +80.0%. Of course, looking through this euphoric gain, the longer term investor will point out that this is the first decade in history that the S&P will close down (31 Dec 1999 close: 1469.25, yesterday’s close: 1126.42), serving as a strong reminder of the sheer magnitude of the financial crisis that we are still recovering from. |
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Fundamental Archives |
Written by AC-Markets |
Dec 31 09 10:56 GMT |
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As the decade comes to a close, Asian trading session continues to be defined by thin liquidity. USD fell against all G10 currencies especially NZD. Spot Gold traded higher to $1100oz while EURUSD traded sharply up to 1.4440. Carry trades found strong buying interest, despite the Tokyo holiday, as the EURJPY moved up to 133.14 from the opening level around 132.52. Comments from Chinas officials hit the wires today as regulator (SAFE) said in a statement on its website that the CNY exchange rate is not pegged to the U.S. dollar only, but refers to a basket of currencies. |
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Fundamental Archives |
Written by ecPulse.com |
Dec 31 09 07:01 GMT |
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The British economy, after contracting for six consecutive quarters on the back of the global recession that hit the economy last year, is now showing signs of recovery which provide evidence that the economy will mostly emerge from the downturn in the last quarter of the current year. |
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Fundamental Archives |
Written by Forex.com |
Dec 31 09 05:48 GMT |
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With Japan out on Holiday and the New Year looming the action in today’s Asian session was lacking to say the least. While most pairs were moving in relatively tight ranges, the EUR/USD and AUD/USD were noticeably higher with gold not trailing too far behind. Most moves were limited with the probable culprit being a bit of position squaring ahead of the New Year. |
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Fundamental Archives |
Written by Trade The News |
Dec 31 09 05:11 GMT |
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In currencies, the USD is weaker against most currencies on the gains in Asian equities. The Japanese yen is firmer against both the USD and pound, but weaker against the commodity currencies. Additionally, the British pound has seen broad-based selling, after the currency rose sharply on yesterday's session on a rumor that Hershey might substantially raise its offer for the UK's Cadbury. |
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Fundamental Archives |
Written by Finotec Group |
Dec 31 09 04:06 GMT |
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The British Pound recovered on Wednesday, caught up in end-of-year flows and holiday thinned trading volumes. Earlier, the pound fell against the U.S. dollar versus a basket of currencies on Wednesday, weighed down by gloom over the economy and rising public debt. However, traders said late month-end flows towards the end of the session helped spark a solid recovery in euro/sterling, with extremely thin volumes helping to exaggerate price movements. This year has been challenging for the UK currency. Although sterling has appreciated by around 6 percent against the euro in 2009, this was from a record low point late in 2008."Sterling sentiment is struggling for positives at the moment -- any positives are being drowned out by the negatives," said Geoffrey Yu, currency strategist at UBS in London. The GBP/USD is currently trading at $1.6070 as of 19:49pm, GMT, with a bullish trend. |
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Fundamental Archives |
Written by Easy Forex |
Dec 31 09 03:46 GMT |
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The general consensus of economists is that the US will experience 2 to 2.5% growth in 2010 with equity market gains limited to single digits and the USD likely to post a modest recovery. Aggressive fiscal and monetary stimulus from the Fed and US government helped to stabilize the financial markets and end the US recession. The USD posted 2.2% growth in Q3. The rise in US Q3 growth reflects an increase in consumer spending sparked by government programs like the cash for clunkers and tax credit for first-time homebuyers. |
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Fundamental Archives |
Written by Easy Forex |
Dec 31 09 03:42 GMT |
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U.S. Dollar Trading (USD) had an interesting trading day as strength remained but only against certain currencies. Underpinning the USD was December Chicago PMI jumping to 60.0 vs. 56.1 previously. DJIA +3 points closing at 10548, S&P +1 points closing at 1126 and NASDAQ -2 points closing at 2291. Looking ahead, Weekly Jobless Claims forecast at 460k vs. 452k previously. Market's closed New Years Day |
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Fundamental Archives |
Written by CMS Forex |
Dec 31 09 03:40 GMT |
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The dollar traded mixed in light December 30 trading. The ISM Chicago PMI rose to its highest level since January 2006, fueling optimism of US manufacturing expansion. The S&P 500 edged 0.22 points higher to 1,126.42. The yen declined, pressured by Japan’s debt issuing and fear of JAL bankruptcy. The euro was pressured by a third consecutive decline in private sector lending and weakness in EMU M3. Sterling fell overnight on concerns about the UK debt outlook but reversed losses after S&P downgraded Madrid’s debt rating which shifted focus to European fiscal troubles and rallied the pound particularly against the euro. The Australian and Canadian dollars fell on weakness in gold and stocks. |
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Fundamental Archives |
Written by Forex.com |
Dec 31 09 03:34 GMT |
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The NY session threw the holiday season cliché of no market action out the window. In broad terms, the US dollar ended the session pretty well where it went in, posting a modest 0.1% gain on the day. The positive relationship between better US economic data and the buck remained intact and the highs for the greenback came shortly after a booming regional manufacturing report. |
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Fundamental Archives |
Written by Easy Forex |
Dec 30 09 17:29 GMT |
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USD traded higher Wednesday supported by fiscal worries in Japan and the UK and optimism about the US recovery. S&P warns that Japan's sovereign debt rating may be cut if Japan does not take action to reduce its debt. The Telegraph reports that UK debt is worse than Italy's. Weaker equity market trade and a Moody's downgrade of Abu Dhabi Commercial Bank rating sparked safe haven demand for the USD. JPY was also pressured by report and Japan Airlines may be on the verge of filing for bankruptcy. EUR was pressured by report of an unexpected decline in EU M3. The decline in M3 generates concern about economic recovery in the EU. |
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Fundamental Archives |
Written by Trade The News |
Dec 30 09 15:30 GMT |
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The Euro and JPY price action were the dominated theme during the NY morning as a softer sentiment surfaced among the dollar and GBP pairs. The Chicago PMI data helped to re-enforce the recent string of positive US data which has helped the dollar to benefit from the view that the recovery would allow the Fed to begin exiting from its simulative measures. USD/JPY hitting its best level since early Sept as it approached the 92.60 level. EUR/GBP cross moved back below the 0.90 level which provided GBP/USD momentum to recover all of its losses endured during the Asian and European session and regain a foothold back above 1.5900 The Sterling Pound also got a boost across the board from speculation that Hershey could increase their bid for Cadbury by as much at £3B. The CAD was broadly weaker during the NY morning. Dealer chatter noting that Canadian PM Harper to ask Governor General to suspend Parliament until March |
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Fundamental Archives |
Written by Interactive Brokers |
Dec 30 09 14:53 GMT |
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There is very little to trade off today. The U.S. serves up another belly full of seven year notes after Tuesday's auction went well. Don't forget that no one said investors have lost their appetite for debt at this point - the reality of a recovering economy and the removal of emergency liquidity measures simply means that at some point official rates will rise. Precisely when remains the number one guessing game in year-end financial media circles. The bottom line remains that recovery, stimulus removal and an ongoing gush of supply means the government faces a rising interest bill on newly minted notes and bills. |
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Fundamental Archives |
Written by Dukascopy Swiss FX Group |
Dec 30 09 14:28 GMT |
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The dollar extended its overnight rally, pushing the euro below USD1.43 on Wednesday as U.S. stocks, oil and gold slumped, further eroding investor appetite for higher-yielding currencies. The dollar hit fresh intraday highs against the euro, yen and the Canadian dollar after the Dow Jones Industrial Average opened lower. The greenback surged to a week high against the Canadian currency while climbing to its highest level against the yen since Sept. 21. Data showing that bank loans to companies in the euro zone fell in November added further pressure on the common currency. |
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Fundamental Archives |
Written by Interactive Brokers |
Dec 30 09 13:20 GMT |
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As the old saying has it, “As Goes January, So Goes the Rest of the Year.” It would be nice to think that the New Year would be greeted by at least a tad of optimism. Investors typically buy the equity market at the start of January as no one wants to miss out on the act. And after an uncomfortable first quarter, investors spent the second half of the year getting back on their feet despite incessant warnings that the road to recovery would remain a rocky one. You'd think it might be an appropriate time to perhaps crank up the confidence level buy even just a notch. But in his New Year's message to Great Britain Prime Minister Gordon Brown issued the same message to the nation when he referred to “a still fragile” recovery that “needs to be nurtured.” He told Britons he had a blunt message: “Don't wreck the recovery.” The pound is fast losing friends into the end of the year. |
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Fundamental Archives |
Written by TheLFB-Forex.com |
Dec 30 09 12:45 GMT |
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The currency market once again came to a halt in overnight trade, during the last full trading session of 2009. On the daily chart, most pairs are trading near important swing points, just waiting for some additional momentum to appear, while the dollar index is again preparing to break above the 78.00 area, in a move that is expected to happen in near term the future, now that the solar sellers crumpled in the previous session. |
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Fundamental Archives |
Written by Easy Forex |
Dec 30 09 12:41 GMT |
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The USD is trading higher as stocks decline and worries over sovereign debt risks re-emerge, Moody's downgrades Abu Dhabi Commercial Bank, UK Telegraph reports that UK debt position is worse than Italy's, S&P warns of a Japanese rating cut if steps aren't taken to cut debt, USD trades at two month high versus JPY, Swiss KOF indicator continued to show improvement, EU money supply growth unexpectedly fell in November, US consumer confidence improved in December fueling optimism about US recovery, optimism about US recovery and speculation that the Fed will withdraw stimulus measures as the economy recovers supports the USD, commodity currencies pressured by drop in the price of gold to one-week low |
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Fundamental Archives |
Written by ecPulse.com |
Dec 30 09 12:36 GMT |
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Investors are using this week as an opportunity to relax and enjoy the holiday season, where the volume of trades dropped noticeably during this week, meanwhile, the data released this week didn’t change anything over the outlook for the economy, as the worst recession since WWII seems to have ended, and the economy is indeed walking down the right path to recovery. |
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Fundamental Archives |
Written by Investica |
Dec 30 09 10:42 GMT |
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The UK fundamental outlook remains bleak. There will be persistent fears over the UK government debt position and further speculation over a credit-rating downgrade during 2010 which will maintain underlying Sterling vulnerability. A key factor will be the combination of political and economic fears and the Bank of England could find itself in a very difficult position. Serious weakness in the US and Euro-zone economies will continue to provide some Sterling protection. Weakness elsewhere will lessen the risk of severe downward pressure on Sterling, but a full-blown crisis can certainly not be ruled out. Overall, Sterling is likely to retreat to at least 1.50 against the dollar during the first quarter of 2010. |
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Fundamental Archives |
Written by Trade The News |
Dec 30 09 10:30 GMT |
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The dollar was poised to post its first monthly gain against the Euro currency since June as it looked to build upon its recently found momentum that has been aided by rising US yields. The shifting outlook for US interest rates has pushed the dollar to two-month high against the yen and GBP pairs. EUR/USD trading in the mid 143 area throughout the morning while GBP/USD tested 1.5860. |
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Fundamental Archives |
Written by AC-Markets |
Dec 30 09 09:30 GMT |
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Thin liquidity continues to be the dominating theme in FX markets and we wouldnt read too much into the current price action. The EURUSD traded in a 1.4306 to 1.4375 range, while the USDJPY slowly trended higher, moving back to 92.27 from 91.55. The heavy buying of commodity currencies against the JPY seen yesterday tapper off slightly today, but still was weighing on the Yen. The big news was Japanese Airlines ongoing bankruptcy concerns as shares continued to slide which weighing broadly on Asian equities. |
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Fundamental Archives |
Written by Dukascopy Swiss FX Group |
Dec 30 09 07:19 GMT |
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The U.S. dollar soared to a fresh two-month high against the yen Wednesday, driven by short covering and U.S. data reinforcing the view that the Federal Reserve may raise policy rates next year. The dollar hit JPY92.27 in early trade, and may gain this week above JPY92.50, a level not breached since the U.S. currency started a multi-week slide in late September that triggered threats of intervention by Japan's government. It also increased against the euro, but stopped short of a key technical level. |
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Fundamental Archives |
Written by AC-Markets |
Dec 30 09 07:18 GMT |
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Asian stock markets have been mixed overnight with the Shanghai Composite up over 1.5% on the day, but the Nikkei nearly a percent lower - weighed down primarily by speculation that Japan Airlines may have to file for bankruptcy. Shares in the troubled airline are down over 25% from yesterdays close to 67 yen (the lowest levels since the shares began trading) and sentiment is particularly weak given that the carrier has already accepted 4 bailouts from the Japanese government since 2001. Despite the knock to risk sentiment, the USD has been largely unchanged from the end of the European session yesterday, with EURUSD at 1.4340 and USDCHF at 1.0380. |
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Fundamental Archives |
Written by ecPulse.com |
Dec 30 09 06:52 GMT |
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Notwithstanding the remarkable improvement witnessed by the euro zone in the third quarter, banks are still unable to return to the pre-crisis lending rates, ever since the financial tsunami caused several banks to suffer from illiquidity and impaired balances, due to the writedowns and bad loans. |
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Fundamental Archives |
Written by Trade The News |
Dec 30 09 05:47 GMT |
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In currencies, USD was broadly stronger across the board, tracking the rally in the US hours following a 3-month high in conference board consumer confidence. USD/JPY moved to fresh 2-month high above 92.20, with the Yen also consolidating its recent weakness against EUR and GBP. In European majors, EUR/USD fell about 50 pips but bounced off the 1.43 handle. GBP/USD traded 20 pips on both sides of 1.59, while USD/CHF backed away from 1.04 handle. Commodity FX was particularly weak, with both AUD and CAD falling against USD and European majors. AUD/USD pared US session gains back down to 0.89, USD/CAD advanced above 1.05 for the first time in a week, while EUR/AUD bounced off 1.60 and GBP/AUD found support at 1.77 for the third time in two months. |
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Fundamental Archives |
Written by Forex.com |
Dec 30 09 05:11 GMT |
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With improving sentiment on the recovering US economy, the Dollar continued to make strides in Asia as it hit a pre Christmas high of 1.4306 against the Euro. Despite the firming of the greenback today, the session was clearly victim of year end trading as small ranges and quiet moves prevailed. EUR/USD opened near highs of 1.4355 and eventually dropped below 1.4310 on the day. |
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Fundamental Archives |
Written by TheLFB-Forex.com |
Dec 30 09 03:54 GMT |
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The dollar index was sold during the overnight session, but as U.S. trade approached, the major pairs started losing ground gained earlier in the day. This move was widely expected because the uptrend of the last few days came on very light trading volumes, and more importantly, against the near and medium term trend reads. Looking ahead, the dollar index is expected to continue its uptrend, breaking free from its correlation with S&P futures and to some extent, with the commodity market. For the major pairs, the next important support area is to test lows set in pre-Christmas trading. |
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Fundamental Archives |
Written by Easy Forex |
Dec 30 09 03:38 GMT |
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To combat the impact of 2008 global financial crisis the UK government significantly expanded government spending. UK net public-sector borrowing rose at a record pace in November and the UK budget deficit is at a record £178bln. Rating agencies warn that if the UK government does not take credible action to reduce the budget deficit the UK AAA sovereign debt rating is at risk for downgrade. Today's UK press is filled with stories about the UK government debt with a group of economists stating that the UK government has yet to come up with a convincing plan to reduce the UK deficit. If the UK government fails to take action on debt and the credit rating is lowered it will raise the cost of funding the UK debt and contribute to greater risk of a debt crisis in the UK. |
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Fundamental Archives |
Written by CMS Forex |
Dec 30 09 03:34 GMT |
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The dollar reversed overnight losses and gained modestly against other key currencies after Moody's downgraded Abu Dhabi Commercial Bank on Tuesday. The greenback was supported by further signs the US economy is steadily recovering and speculation the Federal Reserve will begin removing stimulus earlier than expected. US consumer confidence rose for a second month and house prices grew for a fifth straight month. The Santa Claus rally stalled on its seventh day as the S&P 500 edged 1.58 points lower to 1,126.20. The Treasury prices rose on the back of a solid $42 billion 5-year note auction. The euro reversed earlier gains after failing to break the 1.44-area resistance. Germany's consumer-price inflation climbed more than expected on rising energy prices. Sterling reversed overnight gains, unable to stay above the 1.60 handle. The Australian dollar rose for a fourth day. The Canadian dollar was little changed. |
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Fundamental Archives |
Written by Easy Forex |
Dec 30 09 03:28 GMT |
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U.S. Dollar Trading (USD) initial Dollar weakness during the European session was reversed aggressively in the US session as Dollar buyers returned in force. Stocks remained buoyant globally and this helped risk currencies such as the AUD outperform. December CB Consumer Confidence jumped to 52.9 vs. 49.5 previously. DJIA -1 points closing at 10545, S&P -1 points closing at 1126 and NASDAQ -2 points closing at 2288. Looking ahead, December Chicago PMI forecast at 55 vs. 56.1 previously. Also released, Weekly Crude Oil inventories forecast at -1.7 vs. -4.9 previously. |
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Fundamental Archives |
Written by RBC Financial Group |
Dec 29 09 17:39 GMT |
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Consumer confidence rose to 52.9 in December broadly in line with expectations following November's 50.6 (revised from 49.5) reading. Perceptions of labour market conditions improved modestly because the labour market differential (measuring those reporting that jobs are plentiful less jobs that are difficult to get) improved to -45.7 from -46.1 in November. |
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Fundamental Archives |
Written by GCI Financial |
Dec 29 09 17:10 GMT |
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U.S. equity markets were marginally stronger through mid-day North American trading. Data released in the U.S. today saw December consumer confidence improve to a weaker-than-expected 52.9 from a revised November reading of 50.6, the third consecutive monthly increase. Also, the October CaseShiller home price index was off 7.28% y/y, an improvement from September's -9.27% decline. |
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Fundamental Archives |
Written by Easy Forex |
Dec 29 09 17:07 GMT |
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USD opened lower Tuesday pressured by improving risk appetite as global equities rally to their highest level for the year. As markets reopened from Christmas holiday in the UK and Australia, GBP continued to underperform pressured by concern about UK debt and AUD rallied more than 1% supported by surge in copper prices to a new high for 2009. USD consolidated recent gains versus the JPY as the US/Japan 10 year bond yield spread rose to its widest level in two years. |
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Fundamental Archives |
Written by Trade The News |
Dec 29 09 15:20 GMT |
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The USD continued to consolidate its Dec gains against the European pairs. As noted on Monday, dealer sentiment took notice that despite rising yields, the dollar failed to garner additional strength from higher interest rates. USD/JPY holding steady as two-way flows between fund managers buying dollars and Japanese exporters selling are keeping the pair in a tight range just below the 92 handle. Dealers are also posturing about the carry-related theme unfolding. The spread between the US/Japan 10-year bonds did hit a fresh two-year high in favor of the dollar. Traders also remain keyed on the EUR/CHF cross, which held the 1.5850 level for the second time in less than a week. The USD/CHF is also holding above the 1.0270 hourly pivot point that has been a momentum point since early Nov. There are some suspected USD sell-stops lurking below that level. |
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Fundamental Archives |
Written by ecPulse.com |
Dec 29 09 15:06 GMT |
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The U.S. economy released its consumer confidence showing that it climbed to 52.9 from the upwards revised reading of 50.6, which is lower than the projected 53.0, although the reading did not meet expectations, yet investors were filled with optimism as rising confidence meant that slight recovery is taking place in the U.S. The upbeat data gave the dollar some support to start rising versus major currencies, yet on the daily charts it is depreciating. |
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Fundamental Archives |
Written by Interactive Brokers |
Dec 29 09 15:05 GMT |
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A paper inviting comments from academic and institutional onlookers released by the Federal Reserve on Monday is the latest catalyst for a continued collapse in bond prices sending yields higher around the world. U.S. 10-year note prices fell lifting yields to the highest since August while the slide in British government bonds continued after a prolonged holiday weekend lifting yields to the highest in 12 months. Once again the trading mindset is being increasingly shaped by an ebullient feeling underpinning rising global equity prices, driving optimism in the ongoing recovery process. Meanwhile rising consumer confidence data released today by the Conference Board confirms a rosier outlook ahead. |
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Fundamental Archives |
Written by ecPulse.com |
Dec 29 09 15:03 GMT |
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Today, we continue to see evidence that the stimulus measures applied by the governments have helped ease the decline in prices. German consumer prices improved heavily based on the measures applied and the rise in energy prices that we have been witnessing lately. |
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Fundamental Archives |
Written by TheLFB-Forex.com |
Dec 29 09 15:01 GMT |
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Near-term Usd drivers (equities, oil, and gold) are in a short-dollar mode, but the components of the dollar index are very mixed, and favoring the long side of the dollar; a swing change is here. The moves that have created the change have come off macroeconomic reports that have been positive for the U.S. economy. |
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Fundamental Archives |
Written by Dukascopy Swiss FX Group |
Dec 29 09 14:50 GMT |
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The euro climbed to its highest level in nearly two weeks in New York trading, underpinned by higher global stocks prices, but the single currency's rally lost some momentum after economic data showed the U.S. recovery is getting traction. The dollar is lower against most rivals Tuesday morning as investors book profits on the greenback's December rally ahead of the year-end. |
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Fundamental Archives |
Written by Interactive Brokers |
Dec 29 09 13:47 GMT |
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The dollar index is down by 0.3% at the start of North American trading still typified by thin trading conditions. The underlying theme remains intact. Investors expect to build on the closing arguments from 2009 and see better things happening next year. There is building anxiety in the bond markets tipping off investors that the period of ultra-low monetary policy is likely to disappear from the agenda in 2010 and like it or not, a higher and steeper yield curve is but one of the ingredients of recovery. The dollar's recent rally in line with that view has come to a sharp halt as investors realize that there will be no jump in short rates, just a gradual rise. Meanwhile the Japanese yen continues to play second fiddle to the dollar as investors figure it will be left in the dust as and when global interest rates finally budge. |
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Fundamental Archives |
Written by Easy Forex |
Dec 29 09 12:34 GMT |
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The USD is trading lower as global equity markets trade higher and risk appetite improves, EUR supported by gains in cross trade to GBP, AUD rallies 1% supported by improving risk appetite as stocks rise, USD consolidates recent gains versus JPY as US 10 year bond yield spread rises to the widest level in two years versus Japanese bonds, trading conditions are said to be very thin |
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Fundamental Archives |
Written by Investica |
Dec 29 09 12:03 GMT |
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Looking at the US economy in isolation, the dollar outlook is certainly not encouraging as it will remain weighed down by fears over reserve diversification and rising government debt. If the perspective widens to the global economy, then the outlook looks more encouraging. The European economies will under-perform while fears over a lack of sustainability in the global economy are also liable to increase. In this environment, there should be only limited net capital outflows from the US and the dollar will also gain support on valuation grounds. Overall, the dollar should strengthen towards 1.39 against the Euro early in 2010, although probably for the wrong reasons. |
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Fundamental Archives |
Written by ecPulse.com |
Dec 29 09 12:02 GMT |
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The Japanese yen dropped versus majors, as stocks bounced to records ahead of the release of important U.S. data. Investors left refuges on signs of recovery amid tranquility in markets, on the back of the year-end holidays. Later on today, U.S. data concerning housing and confidence are due where expectations are in favor of an increase, which may change the market direction towards the U.S. dollar that had slipped for the fourth day today against a basket of major currencies, as indicated by the dollar index. |
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Fundamental Archives |
Written by ecPulse.com |
Dec 29 09 12:01 GMT |
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The U.S. economy continues to show signs of improvement amid the worst financial crisis since the Great Depression; however, the fundamentals that will be released this week won’t be able to change the current situation or the outlook for the anticipated recovery, where the U.S. economy is expected to continue its recovery process well into next year. |
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