The USD was little changed against most of its major counterparts during yesterday's trading session. Traders awaited Federal Reserve Board Chairman Bernanke's speech yesterday in which he urged a sweeping overhaul of U.S. financial regulations in an effort to smooth out the boom-and-bust cycles in financial markets. The USD began to stabilize as a result, ending yesterday at 1.2693 against the EUR and 1.3767 against the GBP.
Bernanke recommended that lawmakers and supervisors rethink everything from the amounts firms set aside against poten... ( read more )
Archive for March, 2009
March 10, 2009 - Bernanke’s Speech Might Push The USD Down.
The Dollar rose against most of its major currency pairs on Monday. This comes about as falling global equity markets and economic deterioration in Japan and Europe, which are more serious than the slowdown in the U.S., have boosted safe-haven demand for the U.S currency. Nevertheless, the U.S. has also released gloomy economic data. Last Friday's report showed that the U.S. unemployment rate rose to a high of 8.1% in February, as employers cut 651,000 jobs. This reveals that the U.S. has the highest unemployment rate since 1983. Analysts expec... ( read more )
March 9, 2009 - The USD Goes Down After Weak Data
The Dollar experienced a volatile session last week, which was concluded with much bearish behavior in USD crosses. Since Friday, the USD has undergone a bearish trend against the EUR, depreciating over 80 pips to close at 1.2673 at the end of Sunday's trading session. Much of this is owed to data that came from the U.S on Friday; the Non-Farm Employment Change, showing that 651,000 people lost their jobs during February. It's important to note that these figures were worse than forecasted. What's more, U.S. unemployment now stands at 8.1%, a r... ( read more )
All Eyes on the Nonfarm Payrolls
The Dollar finished Thursday's trading session lower versus most of its major currency pairs, as fears about the viability of General Motors, and the U.S. and European banks sent shock waves through the forex and U.S. stock market. Some better-than-expected economic figures coming out of the U.S. yesterday failed to make up for the losses the Dollar suffered from the tumble on Wall Street. This may be due to Unemployment Claims figures still being over the 600,000 level, indicating that the U.S. still has a long way to go before it recovers fro... ( read more )
March 5, 2009 - Euro Rate Cuts On Tap
One of the most important events for forex traders is a decision on short-term interest rates by central banks. Today, not 1, but 2 central banks are set to decrease interest rates by 50 basis points. The European Central Bank (ECB) and Bank of England (BoE) will likely decrease their rates around noon today (GMT), leading to depreciation across the boards for the EUR and GBP. This will no doubt be today's market mover.
The Dollar fell against most of its major currency pairs in yesterday's trading. The Dow Jones ended up 150 points or 2.5%.... ( read more )