Posts Tagged ‘Forex Market Update’
Forex Market Update – German Industrial Production Improves Ahead of GDP Data This Week
Monday, November 9th, 2009German Industrial Production Improves Ahead of GDP Data This Week
Today, Germany released another upbeat data after the buoyant news released recently; marking that the worst is over and the largest economy in the euro area will lead growth in the third quarter as it did in the second quarter.
The Euro Zone’s gigantic economy released its Industrial Production showing improvement in September coming in at 2.7%, higher than the revised 1.8% and median estimates of 1.0%. Also, on the year the reading inclined to -12.9% compared with the revised -16.5% and expectations of -14.4%.
Forex Market Update – Dollar Delight At Equity Slump
Saturday, October 31st, 2009Dollar Delight At Equity Slump
The next leg higher in dollar index valuations will happen if the S&P fails to get above 1060, (that seems a lot further away at midday on Friday than it did at 08:30 EDT), and oil suffers the indignity of a failure at 79.00. The move to a longer-term currency trade is made easier by the cost of carry in an currency trade not being an issue right now, because swap interest rates are low.
A play on the PowerShares DB U.S. Dollar Bullish (UUP) offers a longer term option to holding spot, (or if you are still a believer that equities will drag the buck lower, the PowerShares U.S. Dollar Bearish (UDN) can be used).
Forex Market Update – Dollar Stands Still
Monday, October 26th, 2009Dollar Stands Still
Most currencies are higher versus the dollar to start the trading week although the dollar index is down a mere seven basis points to stand at 75.53. There are several contrary influences weighing on near-term direction, yet none seem persuasive enough to create a breakout from the recent range. With U.S. growth data due on later in the week the stakes were raised by Monday’s strong 2.9% GDP reading from South Korea – a whole percentage point better than was expected. This reminder that the Asian and pacific economies are snapping back fast and arguably bodes badly for the dollar. Will a strong U.S. report card hinder or bolster it, we wonder?
The Wall Street Journal dedicated a speculative column this weekend to the view that at next week’s FOMC meeting the committee will put forth the issue of how and when to announce the issue of raising interest rates to the world. It makes sense since other central banks around the world are having to deal with the subject, yet some members have recently indicated that given the spare capacity and rising level of unemployment, there really is no rush to jump-start the monetary engine. However, the yield curve is taking its cue from the article and is becoming steeper as back-month Eurodollar futures weaken.
