BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Europe Debt Concerns Continue to Weigh on Euro, Support Dollar]]>http://www.bloggingstocks.com/2011/01/11/europe-debt-concerns-continue-to-weigh-on-euro-support-dollar/http://www.bloggingstocks.com/2011/01/11/europe-debt-concerns-continue-to-weigh-on-euro-support-dollar/http://www.bloggingstocks.com/2011/01/11/europe-debt-concerns-continue-to-weigh-on-euro-support-dollar/#commentsFiled under: , ,

The beleaguered U.S. dollar, which has weakened about 50% versus the euro and about 11% versus the British pound since 2002, is down but hardly out.

The dollar has rallied in the past two months versus the euro (up 8%) and pound (up about 4%), on renewed concern about sovereign debt in Europe. This time, the concern is about Portugal's debt, and the impact continued credit market woes would have on both euro-zone and United Kingdom GDP growth.

On Tuesday, Portugal's Prime Minister Jose Socrates said his country will not need a bail-out, and its budget deficit will be lower than forecast, Bloomberg News reported. He said rumors that the country needs aid are helping "speculators" while hurting Portugal and driving down the euro.

Continue reading Europe Debt Concerns Continue to Weigh on Euro, Support Dollar

Europe Debt Concerns Continue to Weigh on Euro, Support Dollar originally appeared on BloggingStocks on Tue, 11 Jan 2011 15:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British pounddollareurointhenewsIrelandPortugalTue, 11 Jan 2011 15:30:00 EST<![CDATA[First a Plunging Euro, Now a Plunging Pound?]]>http://www.bloggingstocks.com/2010/03/03/first-a-plunging-euro-now-a-plunging-pound/http://www.bloggingstocks.com/2010/03/03/first-a-plunging-euro-now-a-plunging-pound/http://www.bloggingstocks.com/2010/03/03/first-a-plunging-euro-now-a-plunging-pound/#commentsFiled under: ,

First, the euro came under pressure as a result of Greece's fiscal crisis. Now, it seems the British pound may plunge too.

The pound weakened another half-cent versus the dollar to $1.4950 on Tuesday at midday, and the consensus is that the pound will continue to fall versus the world's other, major currencies.

What's hurting the pound? Short-term, investors are concerned that Britain's ruling Labor Party may remain in power -- but without a clear majority -- after the opposition Conservative Party's lead narrowed in a weekend public opinion poll, Reuters reported Tuesday.

Continue reading First a Plunging Euro, Now a Plunging Pound?

First a Plunging Euro, Now a Plunging Pound? originally appeared on BloggingStocks on Wed, 03 Mar 2010 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundcurrencydollareurointhenewspoundWed, 03 Mar 2010 11:40:00 EST<![CDATA[U.S. Has a $1.6 Trillion Deficit, and the Dollar Still Rises]]>http://www.bloggingstocks.com/2010/02/05/u-s-1-6-trillion-deficit-and-the-dollar-still-rises/http://www.bloggingstocks.com/2010/02/05/u-s-1-6-trillion-deficit-and-the-dollar-still-rises/http://www.bloggingstocks.com/2010/02/05/u-s-1-6-trillion-deficit-and-the-dollar-still-rises/#commentsFiled under:

Trillion dollar deficits extending out, purportedly for a decade. A projected $1.6 trillion deficit for next year, fiscal 2011. A higher U.S. national debt ceiling.

And what's the U.S. dollar doing amid the above? Oh, it's trending higher against the world's major currencies.

The dollar early Friday strengthened more than 1 cent versus the euro and British pound, to $1.3607 and $1.5612, respectively, capping a week of impressive gains for the buck.

Continue reading U.S. Has a $1.6 Trillion Deficit, and the Dollar Still Rises

U.S. Has a $1.6 Trillion Deficit, and the Dollar Still Rises originally appeared on BloggingStocks on Fri, 05 Feb 2010 14:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundBritishPounddollar euroDollarEuroGreeceinthenewsFri, 05 Feb 2010 14:40:00 EST<![CDATA[BNP Paribas Says the Pound Will 'Fall off the Cliff']]>http://www.bloggingstocks.com/2010/01/08/bnp-paribas-says-the-pound-will-fall-off-the-cliff/http://www.bloggingstocks.com/2010/01/08/bnp-paribas-says-the-pound-will-fall-off-the-cliff/http://www.bloggingstocks.com/2010/01/08/bnp-paribas-says-the-pound-will-fall-off-the-cliff/#commentsFiled under: , , ,

The March British pound futures traded at $1.5928 on Thursday. BNP Paribas, an international commodities trading firm, predicts that the pound will fall to $1.5730 in the coming weeks and then to $1.40.

Analyst Ian Stannard, said that the pound could "fall off the cliff." Some high-profile bond investors, including Bill Gross's Pimco investments, are pulling back from the purchase of Gilts (British bonds). Some investors are even pulling out completely.

Continue reading BNP Paribas Says the Pound Will 'Fall off the Cliff'

BNP Paribas Says the Pound Will 'Fall off the Cliff' originally appeared on BloggingStocks on Fri, 08 Jan 2010 11:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BNP Paribasbond ratingsBritish poundIan StannardinthenewsPimcopound under pressureUK deficitFri, 08 Jan 2010 11:00:00 EST<![CDATA[Lloyd's Amps Up Insurance and Reinsurance Capacity This Year]]>http://www.bloggingstocks.com/2010/01/04/lloyds-amps-up-insurance-and-reinsurance-capacity-this-year/http://www.bloggingstocks.com/2010/01/04/lloyds-amps-up-insurance-and-reinsurance-capacity-this-year/http://www.bloggingstocks.com/2010/01/04/lloyds-amps-up-insurance-and-reinsurance-capacity-this-year/#commentsFiled under: , ,

Lloyd's of London is poised to take some risks in 2010. In fact, it's ready to put more than $36 billion into the insurance and reinsurance world, according to analysts at reinsurance intermediary Guy Carpenter, a division of Marsh & McLennan (MMC).

The year-over-year increase could be as high as 27% compared to 2009, with the additional capacity coming from lower risk-transfer rates for some lines of business, though much of it is being offered to compensate for the weakness of the British pound relative to stronger currencies, such as the U.S. dollar.

Continue reading Lloyd's Amps Up Insurance and Reinsurance Capacity This Year

Lloyd's Amps Up Insurance and Reinsurance Capacity This Year originally appeared on BloggingStocks on Mon, 04 Jan 2010 11:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Aonbritish poundinsurance companiesinsurance industryinthenewsLloyds of Londonmarsh and mclennanmcoMMCMoodysreinsurance industryus dollarWillisWillisGroupwshMon, 04 Jan 2010 11:30:00 EST<![CDATA[Bernanke: Fed is monitoring changes in dollar's value]]>http://www.bloggingstocks.com/2009/11/16/bernanke-fed-is-monitoring-changes-in-dollar-s-value/http://www.bloggingstocks.com/2009/11/16/bernanke-fed-is-monitoring-changes-in-dollar-s-value/http://www.bloggingstocks.com/2009/11/16/bernanke-fed-is-monitoring-changes-in-dollar-s-value/#commentsFiled under: ,

U.S. Federal Reserve Chairman Ben Bernanke did something Monday that Fed chairs rarely do: he commented on the dollar.

Comments about the dollar are almost exclusively left to the U.S. Secretary of the Treasury, but on Monday Bernanke, in a speech before the Economic Club of New York, said the large movement of capital precipitated by the financial crisis "resulted in a marked increase in the dollar," and those flows are now returning to their former status, due to improved credit market conditions and the stabilization of global economic activity.

Continue reading Bernanke: Fed is monitoring changes in dollar's value

Bernanke: Fed is monitoring changes in dollar's value originally appeared on BloggingStocks on Mon, 16 Nov 2009 17:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BernankeBritish pounddollareuroMon, 16 Nov 2009 17:20:00 EST<![CDATA[U.S. budget deficit up, dollar down? Well, not always]]>http://www.bloggingstocks.com/2009/11/11/u-s-budget-deficit-up-dollar-down-well-not-always/http://www.bloggingstocks.com/2009/11/11/u-s-budget-deficit-up-dollar-down-well-not-always/http://www.bloggingstocks.com/2009/11/11/u-s-budget-deficit-up-dollar-down-well-not-always/#commentsFiled under: ,

A word to the wise: Investors should ignore and/or avoid those in the popular press who rush forward with pronouncements about the dollar vis-à-vis the world's other, major currencies.

Sometimes you'll see them on the 24-hour cable news channels at night on FoxNews (NWS), CNN (TWX), and MSNBC (GE). Their research is often simplistic at best, and at times, it's outright wrong.

One common, conventional wisdom articulation concerns the dollar, and it's 'imminent collapse.' Nothing could be further from the truth. But that's the type of flippant conclusion one gets when one uses superficial analysis, as in 'U.S. budget deficit up, U.S. dollar down.'

Continue reading U.S. budget deficit up, dollar down? Well, not always

U.S. budget deficit up, dollar down? Well, not always originally appeared on BloggingStocks on Wed, 11 Nov 2009 17:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundBritishPounddollarinthenewsyenWed, 11 Nov 2009 17:20:00 EST<![CDATA[What does the U.S. mean when it says it 'supports a strong dollar' ?]]>http://www.bloggingstocks.com/2009/10/13/what-does-the-u-s-mean-when-it-says-it-supports-a-strong-dolla/http://www.bloggingstocks.com/2009/10/13/what-does-the-u-s-mean-when-it-says-it-supports-a-strong-dolla/http://www.bloggingstocks.com/2009/10/13/what-does-the-u-s-mean-when-it-says-it-supports-a-strong-dolla/#commentsFiled under: ,

Investors have probably heard Obama administration officials, like previous Bush administration officials -- and just about every other administration since 1981 -- rattle off the mantra, 'The United States is committed to a strong dollar' even as the dollar continues to weaken. What's going on here?

Well, first: the currency market, long-term, emphasizes actions, not words, and current U.S. public policies do not support the dollar. To strengthen it, the U.S. must cut its trade deficit, eliminate the budget deficit, and get the U.S. economy growing at an adequate rate again.

Continue reading What does the U.S. mean when it says it 'supports a strong dollar' ?

What does the U.S. mean when it says it 'supports a strong dollar' ? originally appeared on BloggingStocks on Tue, 13 Oct 2009 15:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundcurrenciesdollareuroTue, 13 Oct 2009 15:10:00 EST<![CDATA[Is a 'super-currency' possible? ]]>http://www.bloggingstocks.com/2009/10/07/is-a-super-currency-possible/http://www.bloggingstocks.com/2009/10/07/is-a-super-currency-possible/http://www.bloggingstocks.com/2009/10/07/is-a-super-currency-possible/#commentsFiled under: , ,

Is a 'super-currency' - one that could for all intents and purpose replace the dollar as the world's reserve currency - possible?

Well, it is possible, but in this case the aforementioned switch would certainly be super, as it would represent a gargantuan task and adjustment period for members of the global financial system.

Continue reading Is a 'super-currency' possible?

Is a 'super-currency' possible? originally appeared on BloggingStocks on Wed, 07 Oct 2009 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundcurrenciesdollareuroinflationsuper currencySuperCurrencyyenWed, 07 Oct 2009 16:40:00 EST<![CDATA[Dollar's rise may be brief]]>http://www.bloggingstocks.com/2009/09/18/dollars-rise-may-be-brief/http://www.bloggingstocks.com/2009/09/18/dollars-rise-may-be-brief/http://www.bloggingstocks.com/2009/09/18/dollars-rise-may-be-brief/#commentsWhat's next for the dollar? Good question. It depends on which set of economic data points you emphasize, or which mindset/narrative you believe is dominant in the currency markets.

After a nearly two-week decline against the world's other, major currencies, the dollar see-sawed with the euro for the upper hand Friday, as dollar bulls and dollar bears each tried to make their case that their view was more supported by current conditions. The dollar strengthened one-half cent versus the euro to $1.4696 and about 1.8 cents versus the British pound to $1.6260 on Friday at mid-day.

Continue reading Dollar's rise may be brief

Dollar's rise may be brief originally appeared on BloggingStocks on Fri, 18 Sep 2009 18:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundcurrencydollareurofeaturedFri, 18 Sep 2009 18:40:00 EST<![CDATA[Is the dollar about to plunge?]]>http://www.bloggingstocks.com/2009/08/27/is-the-dollar-about-to-plunge/http://www.bloggingstocks.com/2009/08/27/is-the-dollar-about-to-plunge/http://www.bloggingstocks.com/2009/08/27/is-the-dollar-about-to-plunge/#commentsFiled under: ,

Where's the dollar headed from here? Well, if you're in the camp that argues both monetary and fiscal stimulus guarantee rising inflation, the dollar will trend lower in the immediate quarters ahead, and probably for longer.

If you're in the camp that argues that given asset destruction, and massive job lay-offs, pricing power is non-existent, the dollar will hold its own against the world's other major currencies.

Continue reading Is the dollar about to plunge?

Is the dollar about to plunge? originally appeared on BloggingStocks on Thu, 27 Aug 2009 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundBritishPounddollareurointhenewsThu, 27 Aug 2009 15:00:00 EST<![CDATA[British pound hits seven-month high on U.S. dollar]]>http://www.bloggingstocks.com/2009/05/27/british-pound-hits-seven-month-high-on-u-s-dollar/http://www.bloggingstocks.com/2009/05/27/british-pound-hits-seven-month-high-on-u-s-dollar/http://www.bloggingstocks.com/2009/05/27/british-pound-hits-seven-month-high-on-u-s-dollar/#commentsFiled under:

The British pound (CME: $BPY) hit $1.60 for the first time in more than half a year this morning, thanks to improved service company sentiment and an increase in mortgage approvals. A rise in consumer confidence in the United States increased risk appetite and lifted the pound, as well.

The news was good enough for a 0.5% gain for the pound against the dollar, a 0.6% increase relative to the euro and 1% against the yen (CME: /JY\M09).

Continue reading British pound hits seven-month high on U.S. dollar

British pound hits seven-month high on U.S. dollar originally appeared on BloggingStocks on Wed, 27 May 2009 11:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>british poundcurrencycurrency exchangecurrency marketscurrency ratesforexforex marketsinthenewsnew zealandus dollarWed, 27 May 2009 11:00:00 EST<![CDATA[Britain in worst fall since 1930s]]>http://www.bloggingstocks.com/2009/03/30/britain-in-worst-fall-since-1930s/http://www.bloggingstocks.com/2009/03/30/britain-in-worst-fall-since-1930s/http://www.bloggingstocks.com/2009/03/30/britain-in-worst-fall-since-1930s/#commentsFiled under: , ,

One of our global partners, Britain, is in an economic tsunami. Here are some recent indicators of the damage being done to Britain's economy:
  • The annual rate of decline in industrial output has reached an alarming 12%.
  • Manufacturing output fell by 6.4% in three month to January, faster than the 4.9% contraction in the quarter ended in December.
  • During the last few months, GDP shrunk by 1.5%. The trends are pointing to a 4% decline in 2009. The last time Britain saw such a sharp decline was in 1931, with a fall of 5%.

Continue reading Britain in worst fall since 1930s

Britain in worst fall since 1930s originally appeared on BloggingStocks on Mon, 30 Mar 2009 14:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>British economyBritish GDPBritish poundBritishEconomyBritishGdpBritishPoundinthenewsMon, 30 Mar 2009 14:20:00 EST<![CDATA[Options Update: Bond and currency ETF volatility at low end of range]]>http://www.bloggingstocks.com/2009/03/25/options-update-bond-and-currency-etf-volatility-at-low-end-of-r/http://www.bloggingstocks.com/2009/03/25/options-update-bond-and-currency-etf-volatility-at-low-end-of-r/http://www.bloggingstocks.com/2009/03/25/options-update-bond-and-currency-etf-volatility-at-low-end-of-r/#commentsFiled under:

iShares Barclays Capital Long Term Tr ETF (NYSE: TIP) closed at $102.35. TIP April call option implied volatility is at 10, puts are at 8; below its 6-month average of 13, according to Track Data, suggesting decreasing price risk.

PowerShares DB US Dollar Index Down (NYSE: UDN) is a rules-based index composed solely of short USDX(R) futures contracts. The USDX(R) futures contract is designed to replicate the performance of being short the U.S. Dollar against the following currencies: Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc. UDN closed at $25.52. UDN May option implied volatility of 20 is below its 26-week average of 25, according to Track Data, suggesting decreasing price movement.

PowerShares DB US Dollar Index Up (NYSE: UUP) is a rules-based index composed solely of long USDX(R) futures contracts. The USDX(R) futures contract is designed to replicate the performance of being long the U.S. Dollar against the following currencies: Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc. UUP closed at $25.31. UUP May call option implied volatility is at 17, puts are at 21; below its 26-week average of 22, according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Bond and currency ETF volatility at low end of range originally appeared on BloggingStocks on Wed, 25 Mar 2009 08:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British PoundCanadian DollarEuroiShares Barclays Capital Long Term Tr ETF TIPIsharesBarclaysCapitalLongTermTrEtfTipJapanese YenPowerShares DB US Dollar Index Down UDNPowerShares DB US Dollar Index Up UUPPowersharesDbUsDollarIndexDownUdnPowersharesDbUsDollarIndexUpUupSwedish KronWed, 25 Mar 2009 08:30:00 EST<![CDATA[Currency traders ask: Anybody have any dollars?]]>http://www.bloggingstocks.com/2009/03/02/currency-traders-ask-anybody-have-any-dollars/http://www.bloggingstocks.com/2009/03/02/currency-traders-ask-anybody-have-any-dollars/http://www.bloggingstocks.com/2009/03/02/currency-traders-ask-anybody-have-any-dollars/#commentsFiled under: , ,

U.S. stock markets appear to be in free-fall (at least short-term), the federal budget deficit will exceed $1 trillion for at least the next two years, and Congress will likely have to raise the national debt ceiling above $13 trillion -- all negative developments for the dollar.

So what does the greenback do Monday? Of course, it continues to rise -- strengthening about one-half cent versus the euro and more than 2 cents versus the British pound, to $1.2581 and $1.4034, respectively.

Continue reading Currency traders ask: Anybody have any dollars?

Currency traders ask: Anybody have any dollars? originally appeared on BloggingStocks on Mon, 02 Mar 2009 14:48:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundbudget deficitcurrenciesdollareurointhenewsnational debtMon, 02 Mar 2009 14:48:00 EST<![CDATA[U.S. adds up to $2 trillion in debt... and the dollar rallies]]>http://www.bloggingstocks.com/2009/02/10/u-s-adds-up-to-2-trillion-in-debt-and-the-dollar-rallies/http://www.bloggingstocks.com/2009/02/10/u-s-adds-up-to-2-trillion-in-debt-and-the-dollar-rallies/http://www.bloggingstocks.com/2009/02/10/u-s-adds-up-to-2-trillion-in-debt-and-the-dollar-rallies/#commentsFiled under: , ,

On a day when the United States committed up to $2 trillion more in government financing and programs to unlock credit markets -- probably the federal government's largest, one-day implied commitment in history -- the dollar rose against the euro and British pound.

The dollar strengthened 1.2 cents to $1.3821 and a gargantuan 4 cents to $1.4488 versus the British pound. The dollar also rose about one-half cent to $1.1584 versus the Swiss franc.

Now, in theory, increasing dollar commitments by the U.S. government means more dollars in circulation, which means every dollar is worth less -- a sequence that should cause the dollar to fall against the world's other major currencies. Not Tuesday, and really, when you review it, not since the financial crisis took hold in October 2008, so says economist David H. Wang. And the reason is basic: the dollar's status as a reserve currency, and as a safe haven.

Continue reading U.S. adds up to $2 trillion in debt... and the dollar rallies

U.S. adds up to $2 trillion in debt... and the dollar rallies originally appeared on BloggingStocks on Tue, 10 Feb 2009 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorBritish pounddollareuroFedGeithnernational debtU.S. TreasuryyenTue, 10 Feb 2009 18:00:00 EST<![CDATA[This U.S. administration may have a strong dollar policy . . . and actually mean it]]>http://www.bloggingstocks.com/2009/02/09/this-u-s-administration-may-have-a-strong-dollar-policy-and-a/http://www.bloggingstocks.com/2009/02/09/this-u-s-administration-may-have-a-strong-dollar-policy-and-a/http://www.bloggingstocks.com/2009/02/09/this-u-s-administration-may-have-a-strong-dollar-policy-and-a/#commentsFiled under: , ,

The previous U.S. presidential administration preached a great deal about a 'strong dollar policy.'

Unfortunately, almost no actions practiced by the administration supported that goal.

Concerning the federal budget, a decade of deficits has really hurt the dollar's value. A $1.3 trillion tax cut in 2001 ended the balance budget era of the late 1990s, and subsequent increases in defense spending for the Iraq and Afghanistan Wars -- combined with a lack of a tax increase to pay for that additional spending -- soon led to +$200 billion budget deficits. After swelling to $300 billion, the bank bailout and related legislation would push the deficit over $500 billion, according to the Congressional Budget Office, and it's projected to top $1 trillion this year and in fiscal 2010.

Continue reading This U.S. administration may have a strong dollar policy . . . and actually mean it

This U.S. administration may have a strong dollar policy . . . and actually mean it originally appeared on BloggingStocks on Mon, 09 Feb 2009 15:18:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundbudget deficitcorporate tax ratedollareuroObama administrationtrade deficitMon, 09 Feb 2009 15:18:00 EST<![CDATA[Despite rising deficit, haven status continues to support dollar]]>http://www.bloggingstocks.com/2009/02/04/despite-rising-deficit-haven-status-continues-to-support-dollar/http://www.bloggingstocks.com/2009/02/04/despite-rising-deficit-haven-status-continues-to-support-dollar/http://www.bloggingstocks.com/2009/02/04/despite-rising-deficit-haven-status-continues-to-support-dollar/#commentsFiled under: , ,

The dollar, despite the prospect of back-to-back trillion dollar U.S. budget deficits, continues to hold its own against the world's other major currencies. What's more, provided the fiscal stimulus package is passed, the national debt ceiling will increase to $12.1 trillion from the current $11.3 trillion.

The dollar strengthened about 1.5 cents to $1.2867 versus the euro Wednesday, and rose about 1.4 cents to $1.1586 versus the Swiss franc, while remaining essentially unchanged at 89.62 yen and $1.4490 versus Japan's yen and the British pound.

Continue reading Despite rising deficit, haven status continues to support dollar

Despite rising deficit, haven status continues to support dollar originally appeared on BloggingStocks on Wed, 04 Feb 2009 17:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundbudget deficitcurrenciesdollareurogoldnational debtoilyenWed, 04 Feb 2009 17:15:00 EST<![CDATA[Soros covered his short position in the British pound]]>http://www.bloggingstocks.com/2009/02/02/soros-covered-his-short-position-in-the-british-pound/http://www.bloggingstocks.com/2009/02/02/soros-covered-his-short-position-in-the-british-pound/http://www.bloggingstocks.com/2009/02/02/soros-covered-his-short-position-in-the-british-pound/#commentsFiled under:

When financier George Soros makes a play, traders stand up and take notice. In 1992, Soros made $1 billion by selling the British pound.

Recently, he used the same strategy of betting against the pound. However, when the pound traded below $1.40 last Wednesday, Soros decided to cover his short position. The pound has traded up to $1.4256 against the dollar on Friday. As demand for the pound rose, it had the effect of putting pressure on the U.S. dollar.

Continue reading Soros covered his short position in the British pound

Soros covered his short position in the British pound originally appeared on BloggingStocks on Mon, 02 Feb 2009 14:06:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>British PoundBritishPoundGeorge SorosGeorgeSorosshort positionShortPositionMon, 02 Feb 2009 14:06:00 EST<![CDATA[Pound hits 23-year low on the dollar. What does this mean?]]>http://www.bloggingstocks.com/2009/01/23/pound-hits-23-year-low-on-the-dollar-what-does-this-mean/http://www.bloggingstocks.com/2009/01/23/pound-hits-23-year-low-on-the-dollar-what-does-this-mean/http://www.bloggingstocks.com/2009/01/23/pound-hits-23-year-low-on-the-dollar-what-does-this-mean/#commentsFiled under: , ,

The U.S. dollar is considered a "safe haven" currency because it is the world's reserve currency. The Dollar Index contract is traded on the New York Board of Trade. It is traded as a single currency but the actual value of the dollar is based on a basket of currencies. What does this mean in actual trading? Traders usually decide to buy or sell a given currency based on the strength or weakness of the underlying economy for that currency. So when we see a headline: "Pound hits 23 year low on Dollar" it means that on a relative basis the pound is weaker than the U.S. dollar.

You could infer from this headline that the British economy is weaker that the U.S. economy and is the reason why the British pound is the weaker currency.

Trading in the currency markets, however, is not always as clear cut as this example. A host of complex variables go into determining a country's currency including the country's political and financial structure, who the leaders of a given country are and most important what is actually happening within that particular country's economy.

Pound hits 23-year low on the dollar. What does this mean? originally appeared on BloggingStocks on Fri, 23 Jan 2009 16:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>British PoundBritishPoundcurrency tradingCurrencyTradingDollar IndexDollarIndexinthenewsFri, 23 Jan 2009 16:45:00 EST