Daily Market Outlook

Mon, Jul 14 2008, 06:35 GMT
by AceTrader Team

AceTrader


AceTrader 1-wk TRIAL

www.AceTraderFX.com 24-Hr Real-time Signals Consistent Performance Intra-day, Daily, Weekly. with Email Alerts Function Try 1-week for $25 USD
**********************************************************
Market Review -11/07/2008 22:30 GMT

The greenback falls as credit woes cut Fed rate hike chances

The greenback fell broadly on Friday on persistent worries about the stability of two U.S. mortgage finance giants, Fannie Mae and Freddie Mac, which may constrain the Federal Reserve's ability to raise interest rates this year, however, the greenback briefly got some support against the Japanese yen after Reuters sources quoted that Fed Chairman Ben Bernanke had said these two companies would qualify for discount window borrowing.  
  
On Friday, the broad-based weakness in the greenback lifted the European currencies higher, cable rose to 1.9960 before easing and the euro rallied to a session high of 1.5949 (the highest since April 23) versus the U.S. dollar and all- time high of 169.93 against the Japanese yen. The dollar dropped as low as 105.66 versus the Japanese yen but later recovered to around 106.21 yen. The Swiss franc also advanced and touched 1.0136 versus the US dollar and last traded at 1.0160.  
  
The interest rate expectations and differentials between the United States and the eurozone have driven the dollar lower and the New York Board of Trade's dollar index, which measures the dollar's performance against a basket of six currencies, dropped to a 2-1/2-month low at 71.795, posting its largest daily fall in more than a month.  
  
A surge in oil prices to record highs and global as well as U.S. stock market losses also did not help the dollar. U.S. crude oil futures for August rose sharply, ending at a settlement price of 144.41 per barrel after jumping to an intra-day record at $147.27. The DJI tumbled more than 200 points in New York morning session but pared some of its losses later and closed at 11,100.54, down 128 points on Friday.  
  
Next Monday, economic data releases include New Zealand retail sales for May, U.K. PPI input, PPI output and PPI core for June, and eurozone industrial production of eurozone for May.

**********************************************************

Published on  Mon, Jul 14 2008, 06:52 GMT

Archive

Trendsetter Financial Markets Ltd.  | Room 1201, 12/F., Harcourt House, 39 Gloucester Road, Wanchai
http://www.AceTraderFX.com | cs@acetrader.com

Legal disclaimer and risk disclosure

Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.

Interested in forex trading? forex brokerage firms!


Interbank FX, LLC
Contact the broker/FDM
Open a demo account
MF Global UK Limited
Contact the broker/FDM
Open a demo account		Easy-Forex™ Trading Platform
Contact the broker/FDM		ODL Securities Inc
Contact the broker/FDM
Open a demo account		Ingot Brokers
Contact the broker/FDM
Open a demo account

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]


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.

Risk Disclosure: 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 invest in 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.

©2008 "FXstreet.com. The Forex Market" All Rights Reserved.