Search
Daily Analysis
0
0
U.S Dollar falls on speculation that consumer spending slowed
Fri, Aug 29 2008, 12:19 GMT
by Benny Menashe
| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.491 | 110.3 | 1.849 | 1.1085 | |
| Resistance | 1.481 | 109.95 | 1.84 | 1.1025 |
| 1.476 | 109.35 | 1.8345 | 1.101 | |
| 1.4665 | 108.7 | 1.824 | 1.0885 | |
| Support | 1.4605 | 108.05 | 1.817 | 1.084 |
| 1.457 | 107.65 | 1.809 | 1.0745 |
The dollar fell against the euro, on speculation a U.S. government report will show growth in consumer spending slowed. The greenback also weakened against the yen as oil prices climbed on signs a storm will disrupt oil production in the Gulf of Mexico, increasing costs for the world's largest energy consumer. Americans, faced with rising unemployment, the largest increase in prices in 17 years and falling home values, are cutting back on big-ticket items like automobiles and furniture. The federal tax rebates, the bulk of which have already gone out, will no longer keep the biggest part of the economy going. ``The dollar has a weak bias,'' said Osao Iizuka, head of foreign exchange trading at Sumitomo Trust & Banking Co. in Tokyo, Japan's sixth-largest publicly traded lender. ``The unhealthy state of the U.S. economy is dictating the tempo for the dollar. A rise in oil prices is also a negative factor for growth.'' The EUR/USD is currently trading at $1.4748 as of 7:43am, GMT.
The pound fell against the euro, headed for a monthly loss, after a private report showed consumer confidence held near a record low in August, strengthening the case for the Bank of England to lower interest rates. The Sterling traded near a record low against the euro after a central bank policy maker said lower interest rates are needed to avoid a recession. The pound headed for a 2.5 percent monthly decline versus the euro, the largest since March, after Bank of England policy maker David Blanchflower said yesterday rates need to decline in an interview with Reuters. It was at 80.65 pence per euro from 80.37. It reached a record low of 80.99 pence on April 16. The GBP/USD is currently trading at $1.8293 as of 8:03am, GMT.
The Australian dollar headed for its biggest monthly loss in 22 years, on speculation the nation's interest-rate advantage over the U.S. will narrow. The currencies weakened after a government report showed yesterday the U.S. economy grew faster than economists expected in the second quarter. Australian dollar is the worst performer of the 16 most-traded currencies in August as traders bet the central bank will lower interest rates next week for the first time in seven years. The AUD/USD is currently trading at 0.8650 as of 8:06am, GMT.
Today's Economic Events
| Time | Event | Currency | Period | Previous | Forecast | Significance | Actual |
| 13:55 | Consumer Sentiment | USD | Jul | 61.7 | 2 | ||
| 13:45 | Chicago PMI | USD | Jul | 50.8 | 2 | ||
| 12:30 | GDP | CAD | Jul | -0.10% | 2 | ||
| 12:30 | PCE index m/m | USD | Jul | 0.30% | 2 | ||
| 12:30 | Personal Spending m/m | USD | Jul | 0.60% | 2 | ||
| 12:30 | Personal income | USD | Jul | 0.10% | 1 | ||
| 9:30 | Leading Index m/m | CHF | Jul | 0.9 | 2 | ||
| 9:00 | CPI m/m | EUR | Jul | 4.00% | 3.90% | 2 | 3.80% |
| 9:00 | Unemployment Rate | EUR | Jul | 7.30% | 7.30% | 1 | 7.30% |
| 8:00 | Italian Retail Sales m/m | EUR | Jul | 0.20% | 0.00% | 1 | -0.50% |
| 5:00 | Housing Starts | JPY | Jul | -16.70% | 14.00% | 1 | 19.00% |
| 1:30 | Credit Card Spending y/y | AUD | Jul | 0.40% | 0.50% | 2 | 0.50% |
| 0:50 | Industrial Production m/m | JPY | Jul | -2.20% | -0.50% | 2 | 0.90% |
| 0:50 | Retail Sales y/y | JPY | Jul | 0.30% | 1.30% | 2 | 1.90% |
| 0:35 | Unemployment Rate | JPY | Jul | 4.10% | 4.10% | 1 | 4.00% |
| 0:30 | Core CPI y/y | JPY | Jul | 1.60% | 1.70% | 2 | 1.50% |
| 0:30 | Overall Household Spending | JPY | Jul | -1.80% | 1.80% | 1 | -0.50% |
| 0:15 | Manufacturing PMI | JPY | Jul | 47 | 1 | 46.9 | |
| 0:00 | Consumer Confidence | GBP | Jul | -39 | -41 | 2 | -39 |
Published on Fri, Aug 29 2008, 12:30 GMT
Archive
- The Sterling tumbles as traders bet on a rate cut to 2%
Published On Tue, Dec 2 2008, 10:35 GMT - Expectations for Rate Cuts Support The Yen
Published On Mon, Dec 1 2008, 11:54 GMT - The Yen Hold Firm against the Dollar
Published On Fri, Nov 28 2008, 10:36 GMT - The Dollar is Pressured by the Rise in Equities
Published On Thu, Nov 27 2008, 11:02 GMT - Market remains skeptical despite new steps, dollar stable
Published On Wed, Nov 26 2008, 10:52 GMT
Finotec
| Global financial trading center, 1 Grivas Digheni and Chrysanthou, 3035 Mylona P.O.B 58007, Limassol
http://www.finotec.com/ | support@finotec.com
Legal disclaimer and risk disclosure
FINOTEC Trading’s Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.Interested in forex trading? forex brokerage firms!
FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)
[Read Premium full description]
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.
©2008 "FXstreet.com. The Forex Market" All Rights Reserved.