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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
10/07/2008
Forex - Central Banks are ready to cut rates
The Dollar fell on Tuesday as steps by the Federal Reserve to calm chaotic financial markets and a signal by Chairman Ben Bernanke that the central bank was ready to cut rates eroded some of its safe-haven bid.
Also, ECB chief Jean-Claude Trichet last week signaled the central bank was ready to start cutting rates.
Analysts said the Dollar still remained a safe-haven, but cautioned that it could fall further against the Euro as its recent rally was seen as slightly overdone. They added that the ongoing credit crisis has started to impact the currency.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
10/07/2008
Forex - Central Banks are ready to cut rates
The Dollar fell on Tuesday as steps by the Federal Reserve to calm chaotic financial markets and a signal by Chairman Ben Bernanke that the central bank was ready to cut rates eroded some of its safe-haven bid.
Also, ECB chief Jean-Claude Trichet last week signaled the central bank was ready to start cutting rates.
Analysts said the Dollar still remained a safe-haven, but cautioned that it could fall further against the Euro as its recent rally was seen as slightly overdone. They added that the ongoing credit crisis has started to impact the currency.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
10/06/2008
Forex - Dollar and Yen surged broadly on Monday as investors close risky assets in higher-yielding currencies.
The Dollar scaled a fresh 13-month peak versus the euro on Monday, while the Yen surged broadly as investors dumped risky assets amid anxiety over the lack of a coordinated global response to the credit crisis.
Traders drove the EurUsd below 1.3500, on a pessimist view after this weekend decision by leaders of Europe's four biggest economies against a coordinated bailout plan. In addition, European governments were forced to rescue large banks and protect ordinary depositors. European banks have been hit hard by the fallout from a crisis that began in the United States when the housing market collapsed and bad mortgage debts multiplied.
Both the Dollar and the Yen rallied sharply against higher-yielding currencies such as the Australian and New Zealand dollars as investors are closing riskier trades.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
10/01/2008
Forex - $700 bio revised rescue plan was accepted by US senate
The Dollar rose against Euro on Wednesday on the view the European Central Bank might have to cut interest rates and optimism that US lawmakers were about to approve the $700bio plan to stabilize the US financial system. This revised version allows the Treasury to buy bad loans from banks to encourage fresh lending and boost economic growth. The Dollar also got a boost from a report showing US private employers cut a surprisingly low 8k jobs in September, according to ADP Employer Services.
The ECB meets today to decide on interest rates and could still leave its benchmark rate steady at 4.25%.
News that Britain's manufacturing sector shrank at a record pace in September pressured Sterling. The report raised the chances of a Bank of England rate cut next week.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
09/30/2008
Forex - Dollar rose on Tuesday help by higher Stock Exchange and cautious optimism on the 700mio bailout plan later this week.
Cautious optimism that US lawmakers would eventually come to some agreement later this week, after Monday's shock rejection of the government $700bio bailout plan, gave the Dollar some steam and powered stocks on Wall Street higher. Also speculation that central banks could cut interest rates eased risk aversion.
The Euro's woes were worsened by news of the bailout of Belgian-French financial services group Dexia by the governments of Belgium, France and Luxembourg. That came after Monday's part-nationalization of Belgian bank Fortis. The Sterling was also hurt as events continued to highlight the international impact of the banking crisis.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
09/30/2008
Forex - Dollar rose on Tuesday help by higher Stock Exchange and cautious optimism on the 700mio bailout plan later this week.
Cautious optimism that US lawmakers would eventually come to some agreement later this week, after Monday's shock rejection of the government $700bio bailout plan, gave the Dollar some steam and powered stocks on Wall Street higher. Also speculation that central banks could cut interest rates eased risk aversion.
The Euro's woes were worsened by news of the bailout of Belgian-French financial services group Dexia by the governments of Belgium, France and Luxembourg. That came after Monday's part-nationalization of Belgian bank Fortis. The Sterling was also hurt as events continued to highlight the international impact of the banking crisis.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
09/28/2008
Forex - Dollar rose ahead of Monday US lawmakers vote
US lawmakers geared up for a possible vote on Monday on creating the $700bio government fund. Congressional leaders from both parties said they had a tentative agreement early on Sunday, but questions abound as to whether the US financial rescue plan, which would use taxpayer funds to buy up toxic mortgage debt, would restore confidence to shaky markets and head of a deeper downturn.
The Euro fell against the Dollar as Belgian-Dutch financial group Fortis was rescued in a state buyout after European Central Bank President Jean-Claude Trichet held emergency talks with Dutch, Belgian and Luxembourg officials.
Sterling was hit as authorities prepared to nationalize troubled mortgage lender Bradford & Bingley and were discussing a sale of its savings deposits and branches, people familiar with the matter said.
Wachovia Corp is in talks with rivals to be taken over, sources familiar with the situation said, after the US bank's shares tumbled 27% on Friday due to fears about its heft
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
09/24/2008
Forex - Dollar get support from news Buffet 5bio in Goldman Sachs and extended Federal Reserve swaps lines to Central Banks.
The Dollar edged up for a second day on Wednesday, helped by the view that the credit crisis was not just a problem for the US economy and currency, but would spill over to the rest of the world.
Testifying to the US Congress on Wednesday Federal Reserve Chairman Ben Bernanke urged immediate approval of the US Treasury's rescue proposal to thwart "serious consequences" for the US economy and financial markets.
Investors’ confidence in the Dollar returned, after news US billionaire Warren Buffett will invest $5bio in Goldman Sachs, and after the Federal Reserve extended currency swap lines to more central banks.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
09/23/2008
Forex - Asia and Europe higher as Buffet’s Berkshire Hathaway invests $5.0Bn in Goldman Sachs.
The dollar rose in late European trading yesterday as Fed Chairman Bernanke and U.S Treasury secretary Paulson testified in front of a senate panel. They came under harsh criticism as the Fed’s decision to buy $700Bn worth of “toxic” assets from ailing U.S and foreign banks was explained, defended and scrutinized.
The specifics of the testimony were already on the newswires but one important revelation to come out of yesterday’s session was that Mr. Bernanke demanded the FED buy these illiquid assets at “hold to maturity” values. This was a stark contrast to“fire-sale” prices that most would expect.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
09/22/2008
Forex - Market worries on Deficit implications of the $700bio Bailout
The Dollar tumbled, hitting multi-week lows against the Euro and against Sterling on Monday as the US government's bailout plan to ease a financial credit crisis reignited worries about the country's
massive budget deficit.
The $700bio package, which is awaiting congressional approval, would give sweeping powers to the US Treasury to buy mortgage-related bad debts from financial firms, including US subsidiaries of foreign banks.
Analysts also raised questions about the ultimate form of the government's proposed $700bio solution to the credit squeeze and how the illiquid and damaged assets held by banks will be valued and taken onto the government's books.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
09/21/2008
Forex - Currency market remains skeptical despite last week rescue plan
Last week, US Treasury Secretary Henry Paulson urged the government to spend billions of Dollars to deal with toxic mortgage assets choking the financial system, while the Federal Reserve said it would provide loans for purchases of high-quality asset-backed commercial paper from money market funds. He will also ask Congress to take action this week on legislation to calm the turbulence on financial markets.
Those developments pressured the Yen, which had tapped safe-haven flows from the markets turmoil, sparked by the collapse of Lehman Brothers Holdings this week and forced the government to bail out insurer American International Group.
Higher-yielding currencies such as the Australian Dollar also surged as investors regained some confidence. AudUsd rose as high as 0.8362. It was last up 3.63% at 0.8341. AudJpy jumped 5.11% to 89.60.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
09/17/2008
Forex - Central banks unite to ease liquidity freeze as the dollar tumbles, WallStreet saga continues.
The equity markets continue to squirm as uncertainty in the future of AIG and Wall Street’s financial giants continues to plague global sentiment in the sector.A selection of central banks (BoJ, ECB, BoE, BoC and the SNB) around the world have agreed to pool an $180Bn infusion into markets to provide much needed liquidity. The fed has authorized the auction in a bid to jumpstart the stagnant credit markets in the wake of the Lehmans debacle, as fears of more bank failures would come to light before the end of this crisis.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
09/15/2008
Forex - Wallstreet Meltdown is now ubiquitous and widespread, Asian and European markets down
Tsunami, cataclysm, meltdown – a plethora of superlatives can been used to qualify yesterday’s news which took the financial world by storm. Between the Lehman Brother’s chapter 11 bankruptcy, Merrill being taken over by Bank of America currency markets reacted in desperation as the Dollar initially took a dive against majors. The EURUSD rose as high as 1.4481 in the early hours of Monday’s Asian trading session as news of a crisis on Wall Street began to seep through – a 1.8% jump from Friday’s close.
The ensuing debacle on AIG’s uncertain future and the imminent FOMC rate decision to be the focus of today’s trading session.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
09/14/2008
Forex - Markets react to Wallstreet meltdown - Risk aversion drives markets, has the dollar's bull run ended?
Lehman Brothers Files for Chapter 11 Bankruptcy, Bank of America buys Merrill Lynch for $44Bn, 70% premium and AIG seeks $50Bn capital rise to avoid being downgraded.The Dollar weakened on Friday as PPI numbers fell short of market expectations. The same traders flocking to the dollar a mere 24h before (Thursday’s 1.3882 in EURUSD a 1 year low) were offloading their dollar trades amid fears of an ensuing financial collapse in wall street. The dollar’s recent strength on the back of risk aversion subsided as news of Lehman Brothers in urgent talks for a takeover by Barclays or Bank of America hit the news wiresThe low-yielding Japanese Yen ended the day higher against the dollar as continued risk aversion and slow Japanese economy drive carry trade opportunists.
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Forex News - RSS Feed - Advanced Currency Markets
Foreign Exchange Market (FOREX) daily information and analyst comment
09/11/2008
Forex - US trade deficit and weaker stocks weighed on Dollar
The Dollar climbed to fresh one-year peaks against the Euro and a major currency basket on Thursday, as nervous investors sought refuge in the greenback's safety amid escalating global slowdown fears. But the market reversed late on Thursday and the Dollar dropped against majors weighed down by a combination of weaker global stocks and data showing the US trade gap expanded to $62.2b, it’s widest since March 2007.
The low-yielding Japanese yen also benefited from a surge in risk aversion, pushing the Euro and the Australian and New Zealand Dollars to their lowest in at least two years. Investors had used the Yen in carry trades to purchase high-yielding currencies in times when global growth was accelerating and risk appetite was high. Analysts said the uncertain global economic outlook was prompting US investors to liquidate assets in emerging markets, where inflation was also becoming a problem.
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