Archive for December, 2008
The Dollar Slides Broadly Ahead of the Unemployment Claims Report
Posted on31. Dec, 2008 by admin.
The U.S currency fell yesterday on concern that the economic recession is deepening in the United States after the U.S. consumer confidence report showed a record decline this month. Yesterday’s decline in the Dollar versus the EUR pared the greenback’s advance this year to 3.4%. It was traded near 1.4160 per EUR after falling 1.3% [...]
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High Price Volatility for Dollar amid Light Trading
Posted on30. Dec, 2008 by admin.
As expected, there was very light volume in trading yesterday but high price volatility for the EUR/USD. The pair climbed as high as the 1.4360 mark. After the 1.4000 support line was broken, a corresponding rally in Crude Oil prices was seen due to a weaker Dollar. The pair ended the day down at 1.4043.
The [...]
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USD Loses Strength as Holiday Shopping Disappoints Retailers
Posted on29. Dec, 2008 by admin.
After the Christmas holiday passed, many retail stores were expecting a small reversal to the recent economic slump seen around the world. Post-holiday shopping discounts usually lead to a vast increase in consumer spending. This year, however, the credit crisis and economic recession have consumers worried about home financing and individual savings more than holiday [...]
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Light Trading Brings Volatility to the Dollar
Posted on23. Dec, 2008 by admin.
The light trading that is typical during the close of the year is having an impact on the movement of the Dollar. National holidays in Japan have significantly limited the amount of liquidity in the forex market, while the approaching holidays in the U.S. has left trading desks working on a skeleton staff. This has [...]
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U.S. Auto Bailout a Blessing and a Curse; Will the Dollar Recover?
Posted on22. Dec, 2008 by admin.
Things are looking down for the U.S. automotive industry as the proclaimed bailout has now been considered a delay for the inevitable rather than disaster prevention. While not certain, of course, the prediction by many analysts that the 3 auto giants (GM, Chrysler, and Ford) may in fact still face significant problems despite receiving bailout [...]
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Dollar Recovers against the Pound and Euro
Posted on19. Dec, 2008 by admin.
The U.S. currency experienced heavy volatility throughout yesterday’s trading session, and recovered some ground against the EUR after the U.S. markets opened. This was after a sharp decline in the Dollar since the start of the week, which saw a reduction in value of the greenback to as low as the 1.4716 mark reached yesterday. [...]
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Interest Rate Cut Sends the Dollar Down Across the Board
Posted on18. Dec, 2008 by admin.
The Dollar took a big plunge on the heels of the Federal Open Market Committee’s surprising move. On Tuesday the Fed slashed rates to the floor, down to 0.25%. Most analysts had forecasted the rate to sit at 0.5%. The Fed seems to be sending a clear sign that they will supply the necessary liquidity [...]
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Dollar Drops on Uncertainty over U.S Automakers Bailout Plan
Posted on16. Dec, 2008 by admin.
The Dollar responded negatively to concerns about further weakness in the U.S. economy and today’s Federal Reserve policy meeting. The currency has hit a two-month low against a basket of major currencies, with the greenback falling to $1.3727 against the EUR, the weakest level since October 14. It has also dropped against the JPY to [...]
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USD Suffers one of its Worst Trading Weeks
Posted on15. Dec, 2008 by admin.
Last week was an exceedingly bearish trading week for the USD against most of its currency counterparts. With a lot of negative news coming throughout the week regarding the American financial crisis, the USD saw very high volatility. Against the EUR, the USD lost over 650 pips and traded above the 1.34 level; as well [...]
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Dollar Tumbles as U.S. Senate Rejects Auto Bailout Plan
Posted on12. Dec, 2008 by admin.
The Dollar experienced heavy losses against a basket of major currencies during yesterday’s trading session due to the U.S. Senates’ rejection of the U.S. bailout plan and the release disappointing economic data. As a result, the USD reached a 13 year low against the JPY of 88.13 to close at 89.32. Additionally, the Dollar hit [...]
