0

0

Daily Market Outlook

Thu, Jul 17 2008, 00:16 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 -16/07/2008 21:52 GMT

U.S. dollar rises versus euro on retreat in oil prices and rally in U.S. stock markets

The greenback rebounded on Wednesday, moving further away from a record low against the euro, on the back of slide in oil prices (August futures dropped $3.67 to $135.07 per barrel) and also surprisingly strong earnings at Wells Fargo & Co soothed fears about the U.S. economy and financial sector. U.S. stocks also rallied, while the dollar got an added boost after minutes from the Federal Reserve's June meeting showed officials believed inflation pressures meant the next interest rate move was likely to be an increase. With separate data showing U.S. consumer prices rose last month at their fastest rate since the aftermath of Hurricane Katrina in 2005, investors were increasingly certain of at least one Fed rate hike before the year is out.  
  
The euro dropped to 1.5800 versus the dollar as North American trade wound down, well off a record high made at 1.6040 a day ago. Sterling also slipped to as low as 1.9958 against the dollar before recovering in late U.S. session. Elsewhere, the Australian dollar fell to 0.9728 versus the U.S unit after reaching another multi-decade high at 0.9851 on Tuesday. The dollar’s strength across the board also pushed Swiss franc lower to 1.0189.  
  
Against the Japanese yen, the dollar gained to 105.12 on the back of the rise in U.S. stock markets, with DJI advancing to 11,239 (up 276 points). On the other side, the euro fell initially to as low as 165.33 versus yen in Europe but later rebounded to166.30.   
  
Concerns about the U.S. financial sector receded a bit on Wednesday after Wells Fargo, the fifth-largest U.S. bank, raised its dividend despite a 23 percent decline in profit caused by bad loans. The dollar also edged higher when Bernanke told the House panel that currency intervention may be warranted under certain conditions.  
  
U.S. short-term interest rate futures are pricing in a 76 percent chance that the Fed raises interest rates from their current 2 percent by December. The Dollar Index on the ICE market increased for the first time in six days, rising 0.1 percent to 71.965. It touched 71.508, the lowest level since April.  
  
On Thursday, economic data releases include Switzerland Zew index, U.S. building permits, housing starts, weekly jobless claims and Philadelphia Fed survey.

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

Published on  Thu, Jul 17 2008, 00:24 GMT


Archive

Trendsetter Financial Markets Ltd.  | Room 1309 - 1311, 13/F., Tai Yau Building, No. 181 Johnston Road, Wan Chai, Hong Kong.
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!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
Interbank FX, LLC
Contact the broker/FDM
Open a demo account
Deutsche Bank
Contact the broker/FDM
Open a demo account		FXA Securities Ltd ( MF Global Group)
Contact the broker/FDM
Open a demo account		GFX Group SA
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.