The USD may further extend its gains against the EUR today; on speculation that growing evidence of a global slowdown will increase the appeal of the U.S currency to traders as a safe-haven. The Dollar closed at $1.2889 per EUR from $1.3120, rising over 230 pips, the biggest gain in three weeks. The Dollar was broadly supported on Thursday as risk aversion came to the fore and optimism rose over the latest U.S. monetary and fiscal stimulus measures, which pushed the U.S currency higher.
The greenback also advanced after the Federal Reserve ... ( read more )
Archive for January, 2009
January 29, 2009 - USD Strengthens by Fed’s Statements
Yesterday's trading was highlighted by the Dollar's rally across the board after the release of the Federal Reserve's statement on Wednesday afternoon during the New York trading session. The greenback jumped against the EUR with the pair plunging below a significant support level of 1.3100. The Dollar also reversed most of its downward momentum against the Pound, closing the day at 1.4155. Against the Japanese Yen, the Dollar rose from 89.22 to end the day at 89.68.
The Dollar began the day in the red as traders feared the Fed may take up m... ( read more )
January 28, 2009 - Will the Us Rate Cut Take it To Zero Today?
The Dollar was little changed against most of its major counterparts during yesterday's trading session. As traders awaited the end of a Federal Reserve meeting in which the central bank may announce new efforts to thaw frozen credit markets, the USD began to stabilize, ending yesterday at 1.3262 against the EUR and 1.4255 against the Pound.
The most influential economic data coming from the U.S. yesterday was the consumer confidence report. The impact of the financial crisis over the last several months has clearly taken a toll on consumers... ( read more )
January 27, 2009 - Euro Currencies Gain as Stocks Rally
The Dollar slid yesterday by over 250 pips against the Pound and EUR to 1.4044 and 1.3211 on risk aversions. This was sparked by good news coming out of Britain's banking sector, led by Barclays, which said they won't need the 4-billion-Pound government aid for their investment banking arm. The reason why this led to the Dollar's decline against its major currency pairs, such as the GBP and EUR, is because when investors feel there is less risk in the market they invest in riskier assets. Therefore, investors drop less risky assets and currenci... ( read more )
January 26, 2009 - Strong Start for the USD ahead of Busy Week
Pushing below 1.2800 against the EUR last Friday, the USD has seen some intense ups and downs ever since. In early trading hours Friday, the USD saw some significant gains against its primary European counterpart, but then turned around to lose it all, ending the day at 1.2970. Today, however, the USD appears to be back on the upswing. Starting the trading day with a sharp 50 pip gain against the EUR, the USD appears to be on track to recover the position it was heading for during Friday's early trading hours.
As confidence in the European m... ( read more )