Daily U.S. Forex Summary
0
0
The US dollar neared record lows against the euro
Mon, Mar 31 2008, 05:59 GMT
by Union Bank of California Team
The US dollar neared record lows against the euro after US data showed inflation pressures were subdued, supporting further interest rate cuts by the Federal Reserve to boost a weakening economy. Consumer spending increased 0.1%, the slowest pace in more than a year, signaling economic expansion may be grinding to a halt. In other news this morning, US stocks gained as energy companies rallied on higher natural gas prices.
The euro was boosted by inflationary pressure comments from a euro zone policy-maker, strengthening the view that the European Central Bank is unlikely to cut rates any time soon. Although, ECB officials have reiterated concerns that the strength of the euro could impact European economic growth, recent European data continues to show the euro-zone economy is much healthier than the US further pressuring the world’s largest economy.
Sterling briefly pared losses against the US dollar and euro drawing support from a narrower-than-expected current account deficit. However, the Bank of England has underlined further downside risks such as a slowdown in economic growth and less global liquidity—markets are pricing in a chance of a UK interest rate cut next month.
The Japanese yen remains within recent ranges against the greenback moving in line with the Swiss franc as both are funding currencies. The Nikkei 225 index rose 215.89 points overnight as investors bet the impact of a US recession and global credit crunch were overdone.
The Canadian dollar was flat ahead of key domestic data due next week, namely the gross domestic product report on Monday and the March jobs data on Friday which could force the loonie out of its recent range. Crude oil weakened slightly to $105 a barrel and gold is trading at $930/oz.
The Australian and New Zealand dollars strengthened versus US dollar aided by a bounce in Asian stocks and a solid week of gains for commodity prices.
Published on Mon, Mar 31 2008, 06:00 GMT
Archive
- The New Zealand dollar fell to one-week lows against the dollar
Published On Fri, Jul 3 2009, 05:46 GMT - The US dollar was mixed vs. most major currencies
Published On Thu, Jul 2 2009, 05:45 GMT - The US dollar rose today following a lower-than-forecast drop in US home prices
Published On Wed, Jul 1 2009, 05:45 GMT - The US dollar continues its decline as market risk appetite returns
Published On Mon, Jun 29 2009, 05:39 GMT - All focus will remain on the Fed statement release at 11:15
Published On Thu, Jun 25 2009, 05:33 GMT
Union Bank of California
http://www.uboc.com | info@uboc.com
Legal disclaimer and risk disclosure
This market comment is prepared by Union Bank of California's Global FX & Derivatives Department for the general information of its customers. It is based of the most accurate information currently available, but should not considered investment advise or a guarantee of future exchange rate or trends.Interested in forex trading? forex brokerage firms!
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.