Federal Reserve Chairman Ben Bernanke's speech yesterday gave a much needed boost to the Dollar against its major currency counterparts, particularly the JPY. Bernanke shifted to a more hawkish tone in terms of the timing of exit strategy following moves by other central banks, stating the bank is ready to tighten monetary policy once the economy improves. ECB President Trishet also supported a strong Dollar in his statement yesterday. [caption id="attachment_1927" align="alignright" width="220" caption="Ben Bernanke"][/caption]
While starti... ( read more )
Archive for October, 2009
October 9, 2009 - Daily Forex Tips – October 9th 2009
Following an exchange of statements by ECB President Jean-Claude Trichet and US Federal Reserve Board Chairman Ben Bernanke, the EUR and USD experienced major swings in yesterday's trading. For the moment it appears as if momentum has shifted in favor of the Dollar for short-term trading.[caption id="attachment_1818" align="alignright" width="128" caption="Daily Forex Tips"][/caption]
Also in the news is an expected downfall in the Japanese Yen before their long holiday weekend. Traders are covering their positions by shorting the JPY in exc... ( read more )
October 8, 2009 - The USD Goes Down Ahead Central Banks Statements
The Dollar is down today as investors await policy announcements from the European Central Bank (ECB) and the bank of England (BOE). Although no interest rate changes are expected, investors will be closely watching any accompanying remarks for clues as to the future of their monetary policy as well as exit strategies. U.S Unemployment Claims are also expected to be released today at 12:30 GMT as well as a testimony by Ben Bernanke at 11:00 GMT.
The U.S. currency weakened against 15 of its 16 most-traded counterparts as Asian stocks advanced... ( read more )
October 7, 2009 - The Focus Goes to Crude Oil Ahead of Inventory Data
With the US Dollar's future feeling uncertain, attention seems to have turned towards Crude Oil following speculation that the Gulf States recently discussed dropping the USD for oil trading in exchange for a basket of currencies. While the rumor was denied later by Gulf State leaders and foreign ministers, the impact created a moment for pause in the market. As a result, many are now focusing their attention on today's Crude Oil Inventories report to find out where the relative level of demand for the commodity currently stands to gauge if the... ( read more )
October 7, 2009 - Daily Forex Tips – October 7th 2009
The Japanese Yen experienced one of its most bullish trading days in recent weeks on Tuesday. The JPY made significant gains against many of its most traded currency pairs.[caption id="attachment_1818" align="alignright" width="128" caption="Daily Forex Tips"][/caption]
Another developing trend is the recovery of Gold. Since the Dollar began dropping against the majors, Gold has risen further and further. It is currently trading around $1037 an ounce. If the Dollar will continue to drop, Gold could reach $1045 an ounce by the end of the day.... ( read more )