After taking a beating last week, the USD is beginning to show some small signs of recovery. Starting the week clouded by uncertainty and straining under market anxiety, the USD sustained blow after blow from the impact of deliberations about a U.S. economic rescue plan, and worse-than-forecasted economic indicators. The verdict is almost out as news from Washington is indicating that a breakthrough was made over the weekend and the bailout package is almost set to be passed into law, giving the U.S. Treasury more authority over the financial w... ( read more )
Archive for September, 2008
September 25, 2008 - New Home Sales – On Tap
The U.S. economic rescue plan of Bernanke and Paulson, as well as the Existing Home Sales figure, has caused frenzy in the market recently. Yesterday, the greenback underwent a volatile trading session against most of its currency counterparts. Starting the early trading sessions off rather flat, the USD's value suddenly dropped following the 14:00 GMT announcement of the Existing Home Sales indicator as it came out worse than forecasted. Correcting this move, however, was the jump in value directly after Paulson and Bernanke's testimonies late... ( read more )
September 24, 2008 - The US Rescue Plan Pushes the USD Up Localy
The USD surprisingly underwent a bullish trading session yesterday as it appreciated against all of its major currency rivals. Earlier in the day, the greenback reached session highs against the EUR after negative Euro-Zone manufacturing data focused attention on weakness in the Euro-Zone. At the end of yesterday's session the USD closed at 1.4644 versus the EUR. The USD also saw steady gains against the Pound Sterling and Swiss Franc.
The most influential economic data coming from the U.S. yesterday were the testimonies of Fed Chairman Bern... ( read more )
September 23, 2008 - The USD Falls Sharply
The USD saw a traumatic day of trading yesterday as it stretched as high as 1.48 versus the EUR, and spiked up to 1.8636 against the GBP. This sharp decline in the value of the USD comes from the ongoing financial crisis and the fact that the recent rescue plan has not yet produced enough confidence in the future of the financial sector. Investor uncertainty lingers over the question of whether or not this plan will do the job, especially when many of its details may not get released until later next week. Until then, the USD will continue to b... ( read more )
September 22, 2008 - US Rescue Plan – On the Way
Last week was an exceedingly bearish trading week for the USD against most of its currency counterparts. Although the USD ended the week pretty close to its previous value versus the JPY, the greenback lost a lot of ground to its other major currency rivals. With a lot of news coming throughout the week regarding the American financial crisis, the USD saw very high volatility. Against the EUR, the USD was traded above the 1.45 level; as well as being traded above the 1.83 range versus the GBP. This past week was one which the USD would like to ... ( read more )