We begin this trading week with tremendous speculation over how the greenback will perform ahead of Tuesday's interest rate statement. Last week, the dollar bounced back against the Euro due to surprising figures from ADP and Non-Farm data. Combined with the surprise cut in UK interest rates the dollar strengthened against its major counterparts, before re-adjusting itself back to levels of above 1.46 to the Euro prior the close of trading on Friday.
Most indications are that the Federal Reserve will once again cut interest rates by a quart... ( read more )
Archive for December, 2007
Nonfarm Payrolls – What Will Be the Greenback̵...
The USD was up against the EUR and held steady against its other European rivals early Thursday in New York as the Bank of England cut interest rates. The BoE's Monetary Policy Committee cut its key interest rate to 5.5% from 5.75% yesterday, the first cut in 2 years, as evidences mounted that the economy is slowing. Overall, the USD remained relatively unchanged after the U.S. jobless claims fell. President Bush is set to unveil plans to help struggling homeowners to avoid foreclosure and this move is expected to help circumvent a U.S. economi... ( read more )
December 6, 2007 - Intensive Correction Move For the Greenback
Dollar bulls took their chance yesterday following the release of a report that showed a marked rise in private-sector jobs, giving the greenback a lift against its major rivals. Yesterday, the U.S. currency gained 1% against the EUR, 0.9% versus the JPY and 1.6% against the GBP.
The USD strengthened yesterday after reports showed that U.S. job growth and factory orders quickened, both of which are reducing concerns that the world’s largest economy will head into a recession. The Labor Department said worker productivity rose the most sinc... ( read more )
December 5, 2007 - US ADP Nonfarm Date On Tap
Yesterday was void of any significant news from the U.S, so the greenback did not experience much movement against the EUR. However the greenback did strengthen noticeably against the CAD on the back of the unexpected Canadian interest rate cut to 4.25%. The main market movement yesterday was still driven by comments by the Fed that the subprime crisis will have a significant drawback on U.S growth. This attitude by the Fed has unsettled the financial markets again and shoved global stocks lower, leading to a risk-averse attitude by investors a... ( read more )
December 3, 2007 - A Reversal Might Be Imminent For The USD.
As we enter the month of December, it is safe to be said that the erratic month of November could get a run for its money. December is usually laced with all kinds of unique and volatile economic news, which drives global economies mad. The closing out of Q4, massive retailer expectations for holiday shopping, the ever so unpredictable US consumer base and to top it all off in 2007, the expected interest rate cuts by the Federal Reserve.
As the month of November closed on Friday, the greenback saw recognizable gains against its major curren... ( read more )