The EUR has faced a rough week thus far. Currently losing against every major currency rival, the EUR may in fact be pricing in tomorrow's expected rate cut by the European Central Bank (ECB). Declining to 1.2525 against the USD in today's early trading hours, and down to 0.8900 against the GBP, the EUR is a little worse for wear.
Typically before an important interest rate decision by the ECB, traders begin to anticipate the policy decision and price-in the impact a day or two ahead of schedule. As such, we may likely be seeing a depreciati... ( read more )
Archive for March, 2009
March 4, 2009 - Falling Equity Markets Push The USD Up
Slumping equity markets continue to put pressure on higher yielding currencies and in turn are boosting the Dollar. The Dow Jones Industrial Average posted another losing day yesterday. Falling equity markets are influencing the forex market by reducing risk appetite. The Dollar has been the primary beneficiary of these market conditions and yesterday was no exception. At the end the day, the Dollar was higher across the board.
Adding to the market's aversion to risk was a Senate testimony from Federal Reserve Chairman Ben Bernanke. Bernank... ( read more )
March 3, 2009 - Bullish Forecast for the USD Through March
The USD rose to its highest level in 2 years against all of its major currency counterparts on speculation that the U.S. government would pour a further $30 billion into American International Group (AIG), fuelling safety buying of the USD. The Dollar was also held gains after a report showed U.S. consumer spending and personal income came in better than expected in January. The fact that the U.S. authorities seem to be taking swift actions to overcome the crisis in the financial system has supported the Dollar lately, which looks to be relativ... ( read more )
March 2, 2009 - The Greenback Rises As the Global Economy Sinks
The USD may continue to strengthen on global economic weakness. As equity markets maintain their bearish momentum, the Dollar has shown considerable strength. The trend of buying Dollars over other major pairs could continue into this week as the global economy continues to suffer and risk aversion remains high.
After stock markets plummeted to a 12-year low this past week, the USD apparently responded with a strong appreciation in value. Against its primary currency rival - the EUR - the greenback gained almost 100 points in early trading h... ( read more )