Currency
Pound Declines Despite BoE Announcement
The Bank of England announced plans to improve the slowing economy by loaning banks £50bn to enable banks to lend to one-another.
The UK housing market has slowed as banks maintain higher interest rates and cease lending to new buyers. Despite the interest rate cuts that the BoE have instigated, the rate cuts have not been [...]
Euro Reaches New All-Time High
The Euro advanced against the Dollar to a new record high of $1.5983, marking the worst decline in Dollar value against the Euro since its inception in 1999.
Forecasts expect a weak manufacturing report in the Philadelphia region to cause the Federal Reserve to cut the benchmark interest-rate.
Michael Klawitter, a currency strategist at Dresdner Klienwort in [...]
General Electric Earnings Lower Than Expected
General Electric [GE] released it’s first quarter earnings data today. The earnings figures came out worse than expected which had a knock-on effect on the US dollar.
General Electrics share price fell over 11 percent today after the data was released.
GE blamed falling profits at its financial services businesses for the poor earning report.
The EURUSD pairing [...]
Euro Falls Back Against Dollar
The Euro fell back against the greenback after European Central Bank President Jean-Claude Trichet suggested the financial market crisis will continue longer than anticipated.
The ECB’s President continued with a hawkish outlook for the time being by leaving the benchmark rate at 4 percent.
Trichet said “we are experiencing a rather protracted period of temporarily high annual [...]
ECB Likely To Hold While Fed May Cut Further
With the US interest rate presently at two and a quarter percent, and the ECB likely to keep interest rates set at 4 percent, we have seen a one week high against the dollar.
It is likely the Federal Reserve will cut interest rates further in the coming days, this has led to trading in favour [...]
Euro Declines Against Dollar
The Euro fell against the USD and the Yen after Eurozone Retail sales data was released. The results fell below expectations signalling a slowdown in the European economy.
“Europe is not as close to a recession as the U.S., but there are signs the European economy is slowing and will continue to slow,” said Jay Bryson, [...]
Dollar Advances in EURUSD Pairing
The USD rose to it’s highest value against the Euro this year.
UBS and Lehman Brothers claimed they’re raising $19bn, bolstering investor confidence in the USD.
Lehman Brothers sold $4bn in stocks and UBS announced plans to seek $15bn in a rights offering, leading to the USD gaining against the Swiss Franc (CHF) and the Danish Krone.
According [...]
Gold Advances As Hedge
Traders saw a rise in the value of gold, silver and precious metal stocks. The weakening US dollar led to traders investing in gold as a way to hedge against the currency downturn.
Gold made it’s third straight quarterly gain, making it a consistent hedging commodity during times of market volatility and the general economic downwards [...]
Tide Turns For USD
After two days of sharp declines for the US dollar, a recovery has been seen against the Euro.
The rise in USD against the Euro is likely based on speculation of the spreading credit crisis hitting Eurozone banks Technical charts confirmed the Euro rose too quickly after posting its biggest two-day gain since Jan 4-5, 2001.
Gloomy [...]
Further Fed Rate Cut Likely
It looks ever-more likely the Federal Reserve will again lower interest rates. The USD fell against the Euro on speculation of such a rate cut.
The Greenback fell the most in two weeks against the Euro after a private report showed US consumer confidence fell further than expected in March.
According to Samarjit Shankar, director of global [...]
