The USD lost over 100 points in trading yesterday against the Euro. The pair ultimately closed at 1.5665. Except gaining vs. the JPY, the US dollar lost versus the rest of the major currencies yesterday. A possible explanation for this general deprecation of the greenback can be found in yesterday's news events. The FOMC Statement was less hawkish than expected after the Fed decided to leave interest rates unchanged at 2.00%. To demonstrate this, here is an example of assertions that were made during the FOMC Statement by the Fed: "uncertainty ... ( read more )
Posts Tagged with ‘greenback’
June 19, 2008 - The Greenback’s Bearish Move is Back.
Yesterday, the USD lost grounds against most of its rival currencies but remained within its recent range. The recent USD weakness has been caused by some traders' renewed expectations for higher U.S. interest rates after contradictory U.S. economic data. The greenback continues with bearish momentum following Tuesday's losses, which resulted by the Housing Starts' plunge to its lowest level in the last 17 years added by the adverse economic information from mortgage and lending markets. The USD was 0.1% lower against the JPY, trading at 107.80... ( read more )
June 16, 2008 - Will The Greenback Continue Its Bullish Path?
The Greenback saw substantial growth last week versus a basket of it currency rivals, most notably against the Euro. The USD gained nearly 500 pips versus its cross-Atlantic counterpart, as the oft-traded EUR/USD pair saw its biggest rise in 3 years. Forex Investor confidence in the greenback grew as the week progressed as US officials continually pushed a hawkish stance regarding monetary policy, as well as shooting down talk of the troubles within the US economy. Dollar bullishness escalated on Thursday after Retails Sales saw a larger than e... ( read more )
May 15, 2008 - Will the Greenback go Bearish Again?
Yesterday the greenback had a volatile trading session against its major currency rivals. It underwent contrasting trends vs. the EUR and the GBP and was bullish vs. the JPY. The main news from the US economy revolved around the Consumer Price Indices. The Consumer Price Index was released at 0.2%, a little bit lower than last month's 0.3% mark. The Core Consumer Price Index was also slightly lower than last month's 0.2% mark as it came in at 0.1% for April. The biggest repercussion from the reports is that the Fed can now cut rates once again ... ( read more )