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February 20th 2012
The dollar slipped vs
sterling and the euro today. Investors are so far enjoying riskier investments and if the bail out package for Greece is
secured then investors may decide to pull out of buying the dollar for other currencies.
February
1st 2012
The dollar today was at a two and half month low versus the British pound. The dollar however
is at a 3 month low versus the yen. There is concern that the Japanese authorities may intervene to lower the value of the
yen.
There remain concerns too that the Fed is looking to resume quantitative easing in the US.
29th
January The pound has reached a near 5 week high versus the US dollar.
23rd January
The dollar fell to a 2 week low against the pound today. The Fed on Wednesday
will publish its interest rate forecasts and this be of interest to investors who will see if the forecasts show the Fed's
plans on future US interest rates. The forecast is that in 2012 they will remain low.
.
17th
January
The dollar was down versus the pound today and also the euro, falling 0.4% versus the pound and
to the levels last seen in September 2010 for the euro.
14th January 2012 The dollar is at a 16 month high versus the euro after Standard & Poors stripped France of its coverted AAA credit
rating.The dollar, Japanese Government bonds and Swiss bonds were where many investors placed their cash last week. 6th
January 2012
The dollar hit a 15 month high against the euro today, concerns that the euro is facing further
crisis in 2012 fuelled investors to sell the euro in favour of the dollar.
"The euro is decoupling from the risk-on,
risk-off trade,” said Vassili Serebriakov, a currency strategist at Wells Fargo & Co. in New York. “We’ve
seen strong U.S. data helping the euro over the past two years via risk appetite, and that is changing as a strong report
like this sees the euro falling versus the dollar. This is going to be a theme that will play out in early 2012.”
4th January 2012 The dollar
is doing well and making gains from both the euro and sterling. Investors are shunning the euro and buying either the pound
or the dollar as there are fears that countries in the Eurozone are heading towards another recession. The pound has also
lost ground to the dollar as the UK economy forecast for 2012 is not rosy and investors are shunning the pound in favour of
the dollar as a safer place for their cash.
8th December 2011
The dollar was the
in currency today as it rose vs a whole basket of currencies today being seen as safe haven for investors cash whislt Europe
struggles to solve the debt crisis.
French
President Nicolas Sarkozy has warned European leaders ahead of the EU summit that "'If we don't find an
agreement by tomorrow, there won't be a second chance" to save the eurozone from debt crisis. "Never has
the risk of disintegration been greater" for Europe, he told a gathering of European leaders.
27th
November 2011
The price of gold dipped last week as investors returned to buying the dollar which saw
the value of the euro fall for the 4th weeks vs the dollar.
Besa Deda who is the chief economist at St. George Bank Ltd
in Sydney said,“Risk sentiment is still pretty poor as there doesn’t seem to be one clear solution that will be
swift for Europe,”
“The U.S. dollar would get some support in this environment particularly, as the
euro is out of favor.”
16th November 2011
The dollar is at a 4 week high vs
the pound as investors rushed to invest in the dollar rather than the euro and the pound. Eurozone countries continue to struggle
to contain their debts and UK unemployment is at its highest level for 15 years and there is further monetary easing forecast.
11th November 2011
The euro rose vs the US dollar to its highest levels in 2 weeks as
investors took comfort in the positive outlook of Italy solving the potential issues of a default. As the euro rose to the
decline of the dollar, the demand for gold increased and the price of gold once again climbed as investors looked for a safe
haven for their cash as an alternative to the greenback.
26th
October 2011
The dollar was under pressure from the pound yesterday after the pound hit a 7 week high
against the dollar. Today it has fallen slightly as there are concerns that the summit to sort out the European debt crisis
may fail and this would be bad news for the pound. The UK is heavily linked to trading in Europe and its bank have loaned
other European banks money. Any issues in the Eurozone directly affects the UK.
21st October 2011
The dollar has reached a 6 week low vs sterling today. If the summit meeting in Europe cannot resolve the debt crisis
shortly then the forecast is for the dollar to rise and for sterling to rise vs the euro.
11th October 2011
The USD has been boosted by investors still nervous of investing in the euro or sterling until it is confirmed
that Greece will receive the funds it needs to prevent them defaulting. If the IMF does release funds to Greece then we may see the forecast for the euro much improved.
As it stands, the market is concerned that the vote will fail because one of four
members of the ruling coalition is set to vote against it. The vote is expected at 02:00 (Melbourne time), however we expect
EUR/USD to come under downside pressure if they do vote against it, and on the premise that the EFSF will not be able to buy
periphery bonds in the secondary market (though, it is worth pointing out it can still operate), we are highly likely to see
a collapse of the current government. The question is though, given how much time core Europe has put into working the new
expanded powers.
Original story
5th October 2011, pound at 13 month low
The pounds is at a 13 month low versus the dollar. US jobs data and the weak European economy boosted the dollar today.
Strategists at Brown Brothers Harriman said, "For
the recent consolidation in risk appetite to hold, and more importantly for it to be maintained in the coming weeks, the markets
in some part need to see a bold policy response from Europe and a continuation of better economic data performance.
We
suspect that the euro-dollar is driven in part by a combination of risk appetite and position squaring ahead of the ECB meeting
tomorrow."
3rd October 2011,
euro falls vs dollar
The euro has fallen to an 8 month low vs the dollar. In contrast
the yen has gathered pace vs the dollar. The euro fell 0.3 percent to $1.3341 per dollar as of 8:3 a.m. in London from $1.3387
in New York last week, after declining to $1.3314, its lowest level since January 18th. The euro fell 0.6 percent
to 102.52 yen from 103.12 yen on September 30th, where it lost 1.3 percent. The dollar was 0.3 percent lower at 76.86
yen.
30th
September, dollar up vs other currencies
The dollar
had a good day today up vs a whole basket of other currencies. The euro is down around 7 percent vs the dollar at the end
of the 3rd quarter. Trade with the pound remained virtually unchanged from Thursday.
The dollar remained under
pressure versus the euro Wednesday morning as global stocks continued to recover from steep recent losses amid hopes that
Europe is taking meaningful steps to preserve its monetary union.
A
day after Greek lawmakers approved a deeply unpopular property tax to meet conditions of its rescue, European Commission President
Jose Manuel Barroso on Wednesday called for more flexibility and powers for the European bailout fund. He also proposed a financial transaction tax, which he described as a contribution
to the society from banks. The buck slipped to $1.3689 versus
the euro, down from where it began the week at an 8-month peak near $1.34. On the other hand, the dollar was steady versus the sterling, after Bank of England policymaker David Miles said
that another round of quantitative easing will be effective in boosting the U.K. economy. The dollar held near $1.5660, having
touched a yearly peak of $1.5324 earlier this week. The buck
slipped back to Y76.30 versus the yen, unable to sustain any upward momentum over the past few months. The dollar hit a record
low Y75.94 in August.
The Commerce
Department is set to release its U.S. durable goods orders report, which gives the value of orders placed for goods designed
to last for more than 3 years, at 8:30 am ET. Economists expect a 0.2 percent increase in durable goods orders for August
following a 4.1 percent surge in July. The Energy Information
Administration is scheduled to release its weekly petroleum inventory report for the week ended September 30th at 10:30 AM
ET. A report released by the American Petroleum Institute late Tuesday showed that crude oil stockpiles rose by 568,000 barrels
in the week ended September 23rd. Federal Reserve Chairman Ben
Bernanke, a FOMC Voting Member, will speak on "Lessons from Emerging Market Economies on the Sources of Sustained Growth"
at the Cleveland Clinic Ideas for Tomorrow Speaker Series at 5 pm ET.
Go to the original story
The dollar remained strong today vs sterling but weakened vs
the euro. A lot will depend in the coming days on whether the G20 leaders can really convince us that there is real solution
to solving the problem with Greece. If they can then the euro will receive a real boost and there could be a switch to buying
the euro rather than the dollar and sterling. |
