The US Dollar experienced a bearish session trading last week, due largely to rising oil prices and the hesitancy of the Federal Reserve to hike interest rates to battle inflationary scares in the US. Investors came into last week with the assumption that the US would beat the Euro-Zone to the punch and hike interest rates. This and some poor early data from the EU sent the dollar up against its major counterpart by more than 100 points. However the dollar was not able to maintain this trend and began to fall consistently throughout the rest... ( read more )
Archive for June, 2008
June 27, 2008 - Crude Oil Soars Beyond 140$
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The Greenback saw yesterday a bearish trend versus the major currencies. When the Fed failed to convince that it would lift the interest rate before the end of the Year and despite a revised GDP that showed a slight improvement in the economy, which provided data that the country may have avoided a recession.
When keeping the Federal Funds Rate at 2% during Wednesday's meeting the Fed expressed their worries about inflation signaling a future increment rate will be only probably over the next months. However the GDP grow by 1% revealing that... ( read more )
June 26, 2008 - Will the Greenback Go Bearish Again?
The USD lost over 100 points in trading yesterday against the Euro. The pair ultimately closed at 1.5665. Except gaining vs. the JPY, the US dollar lost versus the rest of the major currencies yesterday. A possible explanation for this general deprecation of the greenback can be found in yesterday's news events. The FOMC Statement was less hawkish than expected after the Fed decided to leave interest rates unchanged at 2.00%. To demonstrate this, here is an example of assertions that were made during the FOMC Statement by the Fed: "uncertainty ... ( read more )
June 24, 2008 - The Range Trading Continues
Yesterday, traders who went long on the USD saw some significant profits. The greenback gained 142 pips against the EUR, reaching the low of 1.5468 during yesterday's trading session. The GBP\USD depreciated from 1.9755, down to 1.9594. The USD\JPY ascended from 107.25, up to 108.00.
Even though the USD was absent from the economic calendar yesterday, it nevertheless strengthened as a result of some very gloomy indicators published for the EUR, especially in Germany, which is considered the strongest and the most important economy in the Eur... ( read more )
June 23, 2008 - Interesting Trading Week Ahead After The Oil Summit in S...
The USD saw a significant swing in momentum last week as it saw losses versus most of its currency rivals. The dollar was affected in large part due to the rekindling of economic worries in the US that has put the potential Federal Reserve (Fed) rate hike in jeopardy. Fed Chairman Ben Bernanke and his constituents have been adamant lately about the intention of raising rates if inflationary behavior continued. The oft traded EUR/USD pair saw its biggest weekly jump in over 3 months, after the US currency previously spent weeks recovering versus... ( read more )