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[Venture capital funds finding forex cash]]>http://www.bloggingstocks.com/2009/10/11/venture-capital-funds-finding-forex-cash/http://www.bloggingstocks.com/2009/10/11/venture-capital-funds-finding-forex-cash/http://www.bloggingstocks.com/2009/10/11/venture-capital-funds-finding-forex-cash/#commentsFiled under: , ,

Investors have flocked to foreign exchange trading over the past 10 years, and the venture capital community is ready to grab a piece of the action.

Two companies -- Currensee Inc. and Tradonomi LLC -- are angling for central spots in this emerging trading community, and several funds are placing pretty big bets on their success. Currensee has a social network for forex traders, while Tradonomi's move was to create a game-like user interface to make it easier for would-be fortune-makers and thrill-seekers to trade foreign currencies.

Continue reading Venture capital funds finding forex cash

Venture capital funds finding forex cash originally appeared on BloggingStocks on Sun, 11 Oct 2009 14:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>cubitforeign currencyforeign exchangeforexforex marketsinthenewsprivate equityventure capitalventure financialventure fundingSun, 11 Oct 2009 14:10:00 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[Dollar vaults 5 cents higher vs. pound on U.K. recession concerns]]>http://www.bloggingstocks.com/2009/01/20/dollar-vaults-5-cents-higher-vs-pound-on-u-k-recession-concern/http://www.bloggingstocks.com/2009/01/20/dollar-vaults-5-cents-higher-vs-pound-on-u-k-recession-concern/http://www.bloggingstocks.com/2009/01/20/dollar-vaults-5-cents-higher-vs-pound-on-u-k-recession-concern/#commentsFiled under: , ,

These days, the only thing worrying the economists and analysts more than the U.S. economy is the United Kingdom economy.

The U.K.'s situation is worrying currency traders, too. The dollar vaulted 5 cents Tuesday versus the British pound to $1.3890 -- an almost unprecedented move in the currency market -- as traders sensed a deepening recession in the U.K.

The dollar also strengthened 1 cent versus the euro to $1.2940 and 1.2 cents versus the Swiss franc to $1.1422. The dollar was essentially unchanged versus the yen at 90.45 yen.

Currency Trader Andrew Resnick told BloggingStocks Tuesday that with the United Kingdom's decision Monday to allocate an additional $142 billion to support the nation's banks, currency traders "have put the British economy in a time-out chair."

Continue reading Dollar vaults 5 cents higher vs. pound on U.K. recession concerns

Dollar vaults 5 cents higher vs. pound on U.K. recession concerns originally appeared on BloggingStocks on Tue, 20 Jan 2009 09:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British pounddollareuroforexinthenewsyenTue, 20 Jan 2009 09:50:00 EST<![CDATA[Japan's government signals it may intervene to support dollar, drive yen lower]]>http://www.bloggingstocks.com/2008/12/18/japans-government-signals-it-may-intervene-to-support-dollar-d/http://www.bloggingstocks.com/2008/12/18/japans-government-signals-it-may-intervene-to-support-dollar-d/http://www.bloggingstocks.com/2008/12/18/japans-government-signals-it-may-intervene-to-support-dollar-d/#commentsFiled under: , ,

Free markets? Unfettered capitalism? Government getting out of the way so that businesses can operate?

Not exactly. Try mercantilism, national industrial policy, and monetary protectionism.

Japan's finance minister jolted currency markets early Thursday after he signaled that the Japanese government is prepared to intervene in the foreign exchange to support the dollar and euro and drive the yen lower.

The yen Thursday weakened 1.25 yen to 88.39 yen versus the dollar on the news. The yen also weakened 1.5 yen to 128.70 versus the euro. Both pairings had spiked significantly higher immediately after the finance minister's comments were published.

Finance Minister Shoichi Nakagawa said he has "the means" to limit the yen's advance.

In the modern era, Japan has periodically intervened in the market to drive the yen lower and support the dollar to prevent the yen from becoming too strong versus the dollar, and the world's other major currencies. A strong yen hurts Japan's export sales, including cars, by making those cars too expensive for foreign consumers.

Continue reading Japan's government signals it may intervene to support dollar, drive yen lower

Japan's government signals it may intervene to support dollar, drive yen lower originally appeared on BloggingStocks on Thu, 18 Dec 2008 13:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto sectordollareuroexportsforexinthenewsJapanyenThu, 18 Dec 2008 13:55:00 EST<![CDATA[Dollar plunges to 13-year low vs yen after Senate rejects Big 3 bailout]]>http://www.bloggingstocks.com/2008/12/12/dollar-plunges-to-13-year-low-vs-yen-after-senate-rejects-big-3/http://www.bloggingstocks.com/2008/12/12/dollar-plunges-to-13-year-low-vs-yen-after-senate-rejects-big-3/http://www.bloggingstocks.com/2008/12/12/dollar-plunges-to-13-year-low-vs-yen-after-senate-rejects-big-3/#commentsFiled under: , , , , ,

The dollar plunged to a 13-year low against Japan's yen Friday, as currency traders sensed a further-deteriorating U.S. economy on the heels of the U.S. Senate's rejection of the Big Three rescue package.

The dollar plunged more than 3 yen -- an enormous move in the currency market -- to 88.40 early Friday before recovering slightly to 89.50 yen. The dollar also fell about one-quarter cent versus the euro to $1.3375 and one-half cent versus the Swiss franc to $1.1785.

Currency Trader Andrew Resnick told BloggingStocks Friday traders sense that U.S. stock investments will perform even worse now in 2009, as a disruption / cessation of operations by General Motors (NYSE: GM), Ford (NYSE: F), and Chrysler will further decrease commercial activity, and GDP -- making U.S. investments less attractive.

"Currency traders are running for the hills now. They're running out of U.S. investments, which is bearish for the dollar. The yen is rising primarily as a safe haven and as a risk-aversion play, as it typically has during the financial crisis," Resnick said. "Japan's economy isn't that strong, it's in recession too, but as long as it doesn't contract as much as the U.S., traders will prefer the yen over the dollar," Resnick added that he was presently long with the yen versus the dollar, and long with the yen versus the euro.

Further, Resnick said he expects the dollar to fall to 75 yen, if public policy efforts aren't revived to save the U.S. auto sector.

Continue reading Dollar plunges to 13-year low vs yen after Senate rejects Big 3 bailout

Dollar plunges to 13-year low vs yen after Senate rejects Big 3 bailout originally appeared on BloggingStocks on Fri, 12 Dec 2008 11:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto bailoutauto rescuecurrenciesdollareuroforexinthenewsSwiss francyenFri, 12 Dec 2008 11:50:00 EST<![CDATA[Amid rising U.S. budget deficit, investors still clamoring for dollars ]]>http://www.bloggingstocks.com/2008/12/01/amid-rising-u-s-budget-deficit-investors-still-clamoring-for-d/http://www.bloggingstocks.com/2008/12/01/amid-rising-u-s-budget-deficit-investors-still-clamoring-for-d/http://www.bloggingstocks.com/2008/12/01/amid-rising-u-s-budget-deficit-investors-still-clamoring-for-d/#commentsFiled under: , , , ,

Crises have a way of separating strong business models from sub-par ones. Similarly, they sometimes invalidate theories institutional investors and economists have adhered to for generations.

One example of the latter concerns the dollar. The Federal Reserve's balance sheet has increased to $3.5 trillion from $800 billion in September. Meanwhile, the U.S. budget deficit for fiscal 2009, will likely exceed $550 billion (pdf) and could top $1 trillion; it could top $1.2 trillion next year.

Had the aforementioned debt increases occurred in Brazil, Mexico, or Argentina, the result would have been a flight of international investors out of local investments, accompanying respective currency runs, and an ensuing domestic crises.

The impact of the increased debt on the United States? By almost all measures, it's been mild. Since September, the dollar has risen about 15% and 20% against the euro and British pound respectively. Meanwhile, borrowing costs for the U.S. government have trended lower, with interest rates on the 10-year and 30-year bonds falling to 2.79% and 3.29% respectively.

True, the dollar has fallen 13% versus Japan's yen, as institutional investors, unable to productively invest borrowed, low-interest-rate yen, returned that money to Japan, but by and large the dollar has remained firm amid the nation's worst financial and economic crisis in at least 40 years.

Many economists had expected the dollar to weaken. Economist Peter Dawson was one of them.

Continue reading Amid rising U.S. budget deficit, investors still clamoring for dollars

Amid rising U.S. budget deficit, investors still clamoring for dollars originally appeared on BloggingStocks on Mon, 01 Dec 2008 11:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundbudget deficitdollareuroflight to safetyforexgdpinterest ratesinthenewsU.S. economyyenMon, 01 Dec 2008 11:28:00 EST<![CDATA[Dollar, despite deficit, recession, remains firm on flight-to-safety]]>http://www.bloggingstocks.com/2008/11/14/dollar-despite-deficit-recession-remains-firm-on-flight-to-sa/http://www.bloggingstocks.com/2008/11/14/dollar-despite-deficit-recession-remains-firm-on-flight-to-sa/http://www.bloggingstocks.com/2008/11/14/dollar-despite-deficit-recession-remains-firm-on-flight-to-sa/#commentsFiled under: , , ,

From fiscal and economic fundamental standpoints, this is something that shouldn't be happening. Or at least it wouldn't be happening in normal times.

But as investors know, and as currency traders will quickly point out, these are not normal times.

Safety is paramount

The dollar continues to hold its own, for the most part, versus the world's other major currencies, despite the fact that the United States is likely to bear the largest economic and fiscal costs stemming from the financial crisis and consequent recession. The dollar has held on to gains recorded earlier in the month against the euro and the British pound, at about $1.2670 and $1.4720, respectively, losing ground only against Japan's yen, at 96.60 yen.

Currency Trader Andrew Resnick said the dominant theme in the currency markets -- as in almost every market these days, it seems -- is risk aversion and a flight-to-safety.

"The dollar is clearly benefiting from the flight-to-safety. On an economic fundamentals basis, the dollar should not be this strong and U.S. interest rates should not be this low, but fundamentals are not ruling the day now," Resnick said. "Safety and the protection of capital is." Resnick added that he was presently flat, or had no open currency positions.


Continue reading Dollar, despite deficit, recession, remains firm on flight-to-safety

Dollar, despite deficit, recession, remains firm on flight-to-safety originally appeared on BloggingStocks on Fri, 14 Nov 2008 11:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British pounddollareuroflight to safetyforexgdpinterest ratesinthenewsmonetary policyyenFri, 14 Nov 2008 11:45:00 EST<![CDATA[Dollar, yen surge in flight-to-safety amid global recession concerns]]>http://www.bloggingstocks.com/2008/10/24/dollar-yen-surge-in-flight-to-safety-amid-global-recession-conc/http://www.bloggingstocks.com/2008/10/24/dollar-yen-surge-in-flight-to-safety-amid-global-recession-conc/http://www.bloggingstocks.com/2008/10/24/dollar-yen-surge-in-flight-to-safety-amid-global-recession-conc/#commentsFiled under: , ,

The dollar and yen surged Friday -- with the yen the clear winner head-to-head versus the dollar -- as traders and institutions added both currencies in a flight-to-safety on concern that all of the world's major economies will fall into a recession at the same time.

The dollar surged 3 cents versus the euro to $1.2642 and 6 cents versus the British pound to $1.5606.

The yen strengthened 4.7 yen to 92.64 versus the dollar and about 10 yen to 144.73 yen versus the British pound.

Institutions raise cash in dollars, yen

Currency Trader Andrew Resnick told BloggingStocks Friday, this morning's flight-to-safety is not solely due to economic fundamentals, which suggest slowing growth in the world's major economies, but also hedge fund / investment fund de-leveraging and closing out of losing stock positions.

"We're seeing many things happen at once, and that's producing these enormous moves. First, the carry trade [where traders borrow yen and invest it elsewhere] is unwinding. Leverage for investing purposes is declining as a trading strategy," Resnick said. "Second, major players are raising cash to cover redemptions, which is also causing stock markets globally to plunge."

"Third, we're seeing a re-pricing of risk to the higher, which is forcing some funds to raise even more cash, boosting the dollar," Resnick said. "Some of the moves are cash-necessary moves, but many are clearly panic-based, with traders exiting positions that have little chance of succeeding if the global economy continues to slow."

Continue reading Dollar, yen surge in flight-to-safety amid global recession concerns

Dollar, yen surge in flight-to-safety amid global recession concerns originally appeared on BloggingStocks on Fri, 24 Oct 2008 12:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorBankingSectorbanksBritish poundcarry tradeCarryTradecurrenciesdollareuroflight to safetyforexhedge fundsinthenewsinvestment fundsleverageyenFri, 24 Oct 2008 12:10:00 EST<![CDATA[What's the strongest currency in the world?]]>http://www.bloggingstocks.com/2008/10/22/whats-the-strongest-currency-in-the-world/http://www.bloggingstocks.com/2008/10/22/whats-the-strongest-currency-in-the-world/http://www.bloggingstocks.com/2008/10/22/whats-the-strongest-currency-in-the-world/#commentsFiled under: , ,

Here's an icebreaker for your next cocktail party or dinner party. (This one is sure to impress your friends and colleagues even more than explaining the market and economic significance of credit default swaps.)

Q: What's the strongest currency in the world?

Well, let's evaluate the world's major currencies and hone in on the answer.

  • The dollar -- For the last few decades, the dollar was the world's strongest currency. After all, it is the world's reserve currency. However, recent history has not been too kind to the dollar -- the dollar's value has declined throughout the decade -- and the near-term outlook does not look good, either. Massive government spending to both end the financial crisis and put the U.S. economy on a sustainable growth track means additional inflation, if not dollar devaluation, is likely. Nix the dollar as the world's strongest currency.
  • The British pound -- At one point in history, the sun never set on the British Empire, and the pound was the world's reserve currency. Although the pound has been strong this decade, likely additional interest rate cuts and fiscal stimulus to jump start the economy of Her Majesty's Kingdom, as John Lennon would refer to his native land, means the pound is likely to lose value in the year ahead. Nix the pound as the world's strongest currency.
  • The euro -- The euro has challenged the dollar for reserve currency status this decade, and has gained versus the buck for most of that time, but you guessed it: the heavy hand of the financial crisis is beginning to take a toll. For example, Germany alone has approved a 650 billion euro (or $500 billion) bank rescue plan. That's equivalent to the U.S. putting in place a $2.5 trillion plan. Wow. Let's hope Germany doesn't have to use most of it. Of course, the euro zone is more than Germany, but severe stagnation in Germany suggests several more interest rate cuts by the European Central Bank. Nix the euro as the world's strongest currency.

Continue reading What's the strongest currency in the world?

What's the strongest currency in the world? originally appeared on BloggingStocks on Wed, 22 Oct 2008 15:22:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorbanksBritish poundcurrenciesdollareurofeaturedforeign exchangeforexgdpinflationinterest ratesmortgage backed securitiesSwiss franctoxic assetsyenWed, 22 Oct 2008 15:22:00 EST<![CDATA[Dollar idles ahead of word of bailout bill's status ]]>http://www.bloggingstocks.com/2008/09/25/dollar-idles-ahead-of-word-of-bailout-bills-status/http://www.bloggingstocks.com/2008/09/25/dollar-idles-ahead-of-word-of-bailout-bills-status/http://www.bloggingstocks.com/2008/09/25/dollar-idles-ahead-of-word-of-bailout-bills-status/#commentsFiled under: ,

The stance of currency traders as the U.S. Treasury's $700 billion bailout enters a House/Senate conference committee before floors votes and a transmittal to President Bush's desk? Stand aside, for now.

True, the dollar was holding its own Thursday at mid-day against the world's other major currencies, and the Dow was up about 250 points to 11,077 in what some called a 'euphoria rally,' but caution remains the order of the day, regarding the dollar, so says currency trader Andrew Resnick.

"There are still too many unknowns regarding the bailout bill to make an informed conclusion regarding the dollar's prospects at this juncture, so the best stance is standing aside," Resnick said. He added that he was presently flat, or had no open currency trading positions.

For the record, the dollar was slightly higher, up about one-half cent to $1.8401 versus the British pound, but down a quarter-cent to $1.4645 versus the euro. The greenback was also up about one-half yen to 106.56 versus Japan's yen.

The above moves are "statistically insignificant," given the basket of fiscal, monetary, financial sector, and economic unknowns relating to the United States economy, Resnick said.

"We won't know the dollar's fate until we know how much money the U.S. Treasury will spend, in what increments, its primary method of funding, what assets it will buy and at what prices, and how much money the [U.S.] government will have left to deal with other issues," Resnick said. "These are enormous issues, so the situation will remain clouded until we know more."

Continue reading Dollar idles ahead of word of bailout bill's status

Dollar idles ahead of word of bailout bill's status originally appeared on BloggingStocks on Thu, 25 Sep 2008 14:17:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailout billbond marketBritish poundbudget deficitcredit marketscurrenciesdollareuroforexgdpinterest ratesinthenewsNationalDebtU.S. economyU.S. TreasuryyenThu, 25 Sep 2008 14:17:00 EST<![CDATA[Dollar hits one-year high vs euro on European growth concerns]]>http://www.bloggingstocks.com/2008/09/11/dollar-hits-one-year-high-vs-euro-on-european-growth-concerns/http://www.bloggingstocks.com/2008/09/11/dollar-hits-one-year-high-vs-euro-on-european-growth-concerns/http://www.bloggingstocks.com/2008/09/11/dollar-hits-one-year-high-vs-euro-on-european-growth-concerns/#commentsFiled under: ,

The initial analysis regarding the dollar's latest move suggests this dollar rally has legs, but don't write or e-mail home just yet. "We have to take things one day at a time with this dollar move," currency trader Andrew Resnick told BloggingStocks Thursday.

Discretion -- yes, the better part of valor -- is advised because the dollar's rally "is not being driven by robust U.S. economic data or by a conviction that all is well financially in the United States, but by sentiment that Europe's economy is trending toward a recession," Resnick said.

That sentiment propelled the dollar to a 1-year high versus the euro Thursday, good for a 1 cent improvement to $1.3911. The dollar also strengthened about a quarter-cent to $1.7515 versus the British pound.

Resnick added that the market "is basically factoring-in an interest rate cut by the ECB at its next meeting in October." The European Central Bank kept its key, short-term rate, the refinance rate, the same at 4.25% at its September meeting.

Continue reading Dollar hits one-year high vs euro on European growth concerns

Dollar hits one-year high vs euro on European growth concerns originally appeared on BloggingStocks on Thu, 11 Sep 2008 10:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundcurrenciesdollarECBeuroEuropean Central BankFedforeign exchangeforexinterest ratesinthenewsmonetary policyU.S. Federal ReserveyenThu, 11 Sep 2008 10:15:00 EST<![CDATA[This dollar rally may have legs]]>http://www.bloggingstocks.com/2008/09/02/sentiment-building-that-dollar-rally-has-legs/http://www.bloggingstocks.com/2008/09/02/sentiment-building-that-dollar-rally-has-legs/http://www.bloggingstocks.com/2008/09/02/sentiment-building-that-dollar-rally-has-legs/#commentsFiled under: , , ,

The comeback of the beleaguered dollar continues.

The dollar strengthened to a six-month high versus the euro Tuesday, and also rose against the world's other major currencies on a growing consensus in foreign exchange circles that global economic fundamentals are shifting in favor of the greenback.

The dollar strengthened about 1.5 cents to $1.4465 versus the euro, and about 1.4 cents to $1.7877 versus the British pound Tuesday at mid-day. The buck also gained one-half yen to 108.62 versus Japan's yen.

Pivotal for dollar: Europe, Asia GDP

Further, although Tuesday's dollar catalyst was the realization that Hurricane Gustav would cause considerably less-than-forecast damage to Southeast U.S. oil production and the refinery infrastructure, trader Andrew Resnick told BloggingStocks the longer-term focus remains regional GDP growth.

"With Hurricane Gustav out of the way, sentiment's building that this dollar rally has legs. European growth has slowed to recession levels, and China's economy has slowed as well. For Europe, lower interest rates are likely to follow, and that's dollar bullish," Resnick said. Resnick added that he expects the Bank of England to cut its benchmark interest rate by a quarter-point to 4.75% when it meets September 4. He doesn't expect the European Central Bank to lower its 4.25% refinance rate on September 4, but that stand-pat policy may change to accommodation, later this fall.

Continue reading This dollar rally may have legs

This dollar rally may have legs originally appeared on BloggingStocks on Tue, 02 Sep 2008 13:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AsiaBritish poundbudget deficitcurrenciesdollaremerging marketseuroeuro zoneEuropeEuroZoneexportsFannie MaefeaturedFNMforeign exchangeforexFREFreddie Macimportsoil pricestradetrade deficityenTue, 02 Sep 2008 13:55:00 EST<![CDATA[Unwinding of carry trade seen as bearish signal for markets, economy]]>http://www.bloggingstocks.com/2008/08/16/unwinding-of-carry-trade-seen-as-bearish-signal-for-markets-eco/http://www.bloggingstocks.com/2008/08/16/unwinding-of-carry-trade-seen-as-bearish-signal-for-markets-eco/http://www.bloggingstocks.com/2008/08/16/unwinding-of-carry-trade-seen-as-bearish-signal-for-markets-eco/#commentsFiled under: ,

Some market signals are well-known and easily understood. Others are arcane and more-complex, but just as telling.

There's mounting evidence that the "carry trade" is ending, or that at least institutional investors are decreasing their use of it as an investment tactic.

In a carry trade, investors, especially institutional investors, borrow funds in a country with a low interest rate (or borrowing cost) and buy assets in a country where returns are higher. The investment can take many forms, including stocks, bonds, funds, or even the higher-interest currency itself.

Carry trade: A growth confidence indicator

Now, investors/readers may legitimately ask, Why is it important to know what's happening to the carry trade?

Economist Peter Dawson told BloggingStocks that it's important to monitor carry trade flows and data because it's one indicator of investor confidence in a market's ability to produce a return on equity, and by extension, in its economy to grow.

In other words, the carry trade abounds when investors are confident; it wanes when they're not, he said.

Continue reading Unwinding of carry trade seen as bearish signal for markets, economy

Unwinding of carry trade seen as bearish signal for markets, economy originally appeared on BloggingStocks on Sat, 16 Aug 2008 15:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Australian dollarBritish poundcarry tradecurrenciesdollarEUeuroeuro zoneEuropean Unionforeign exchangeforexFrancegdpGermanyglobal economyglobal growthhedge fundsinstitutional investorsinterest ratesNew Zealand dollarU.S. economyUnited KingdomyenSat, 16 Aug 2008 15:40:00 EST<![CDATA[Dollar registers another strong week, but will the rally last?]]>http://www.bloggingstocks.com/2008/08/15/dollar-registers-another-strong-week-but-will-the-rally-last/http://www.bloggingstocks.com/2008/08/15/dollar-registers-another-strong-week-but-will-the-rally-last/http://www.bloggingstocks.com/2008/08/15/dollar-registers-another-strong-week-but-will-the-rally-last/#commentsFiled under: ,

The dollar Friday was on course to record its fifth consecutive weekly gain, propelled higher by the prospect that economies in Europe may be later in the recession/expansion economic cycle than the United States.

The above suggests the Bank of England and the European Central Bank will have to cut interest rates -- itself a bullish factor for the dollar -- with the U.S. economy recovering sooner than the economies in the United Kingdom and euro-zone -- another dollar-bullish circumstance.

On Friday, the dollar strengthened 1.5 cents to $1.4675 versus the euro, and about seven-tenths of a cent to $1.8632 versus the British pound. The dollar also rose about 1 yen to 110.61 versus Japan's yen and about one-half cent to $1.0988 versus the Swiss franc.

From dollar-bear to dollar-skeptic

Currency Trader Andrew Resnick said he's not a dollar bull yet, but the changing global economic landscape has moved him from the dollar-bear category to "the dollar-skeptic category."

"Clearly, fundamentals are shifting in favor of the dollar. Global growth is slowing, taking pressure off commodity prices. Export gains are lowering the U.S. trade deficit, and there's now a better than 60% chance Europe [including the U.K.] will have to cut interest rates," Resnick said. "Those are the best fundamentals for the dollar in about three years." Resnick added that he's presently flat, or had no open currency trading positions.

Continue reading Dollar registers another strong week, but will the rally last?

Dollar registers another strong week, but will the rally last? originally appeared on BloggingStocks on Fri, 15 Aug 2008 15:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of EnglandBOEBritish poundcurrenciesdollarECBeuroeuro zoneEuropean Central BankEuropean UnionFedforexgdpinterest ratesinthenewsoil pricesoil shockSwiss franctradeU.S. economyU.S. Federal ReserveyenFri, 15 Aug 2008 15:50:00 EST<![CDATA[Dollar heads for weekly decline as traders debate next action for Fannie, Freddie]]>http://www.bloggingstocks.com/2008/07/11/dollar-heads-for-weekly-decline-as-traders-debate-next-action-fo/http://www.bloggingstocks.com/2008/07/11/dollar-heads-for-weekly-decline-as-traders-debate-next-action-fo/http://www.bloggingstocks.com/2008/07/11/dollar-heads-for-weekly-decline-as-traders-debate-next-action-fo/#commentsFiled under: , , , ,

The dollar was on-pace to record another weekly decline Friday - - undoing the gains against the euro and pound earlier this summer- - as traders and analysts debated the likely next step for the U.S. Congress and/or the U.S. Federal Reserve on the heels of possible additional massive, mortgage-asset-related write-downs by Fannie Mae and Freddie Mac.

The dollar traded at about $1.5888 to the euro Friday at mid-day, down about 1 cent, and also within about 1 cent of an all-time low versus the euro. The dollar also traded at $1.9878 to the British pound, also down about 1 cent, and off about 1 yen to 106.09 versus Japan's yen.

Currency trader Andrew Resnick said that given the dollar's decade-long slide versus the world's other major currencies, it's difficult to fathom further dollar declines, but that's what the economic fundamentals suggest.

"From one perspective, you have to ask, at what point do central bankers say the dollar's slide poses serious risks of commodity prices rises and inflation, with negative consequences for global growth?" Resnick. "On the scale of competing demands, you can make a strong argument that the dollar can not be permitted to slide much further."

However, Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), which face additional losses, Bloomberg News reported Friday, could come under full control, also called conservatorship, of government regulators, or receive bridge loans from the U.S. Congress or the Fed, Resnick said, absent a private equity investment. In any event, if Fannie's and Freddie's additional losses hit key levels, "we're looking at another enormous government obligation, and that's not good news for the dollar," Resnick said. "It means more dollars in circulation, which combined with the weak U.S. economy, will drive the dollar lower."

Resnick added that he presently is short with the dollar in the euro / dollar, British pound / dollar, and yen / dollar currency pairings.

Continue reading Dollar heads for weekly decline as traders debate next action for Fannie, Freddie

Dollar heads for weekly decline as traders debate next action for Fannie, Freddie originally appeared on BloggingStocks on Fri, 11 Jul 2008 16:19:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British pounddollareuroFannie MaeFedFNMforexFREFreddie Macgdpinflationinterest ratesinthenewsmonetary policyU.S. economyU.S. Federal ReserveyenFri, 11 Jul 2008 16:19:00 EST<![CDATA[Foreign markets round-up: European indexes down; Asia Pacific mixed]]>http://www.bloggingstocks.com/2008/07/11/foreign-markets-round-up-european-indexes-down-asia-pacific-mi/http://www.bloggingstocks.com/2008/07/11/foreign-markets-round-up-european-indexes-down-asia-pacific-mi/http://www.bloggingstocks.com/2008/07/11/foreign-markets-round-up-european-indexes-down-asia-pacific-mi/#commentsFiled under: ,

Citigroup decided to sell its German retail banking division to France's Credit Mutuel for $7.7 billion as the financial behemoth continues reeling from the mortgage loan mess. In addition, analysts speculated that the European-region probably shrank for the first time since the single-currency Euro was formed almost 10 years ago.

In Japan, Shinsei Bank agreed to buy General Electric's consumer financing arm for $5.4 billion as GE continues to seek the sale of non-core operating units, such as its global appliance business months ago.

Below is a foreign market review for this morning:

European markets:
  • The Dow Jones Euro Stoxx 50: at 2,819.21, down -14.51 (-0.51%)
  • The FTSE 100 Index: at 5,391.40, down -15.40 (-0.28%)
  • The DAX 30: at 6,234.31, down -70.69 (-1.12%)
  • The S&P/MIB Index: at 28,590.00, down -181.00 (-0.63%)
Asia/Pacific markets:
  • Singapore Straits Times: closed at 2,926.84, up 25.26 (0.87%)
  • Nikkei 225 Average: closed at 13,039.69, down 27.52 (0.21%)
  • The S&P/ASX 200 Index: closed at 4,979.90, up 42.50 (0.86%)
  • Hang Seng Index: closed at 22,184.25, up 362.77 (1.66%)

Foreign markets round-up: European indexes down; Asia Pacific mixed originally appeared on BloggingStocks on Fri, 11 Jul 2008 08:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>DJIAForexHang SengHangSengMSCINikkeiFri, 11 Jul 2008 08:10:00 EST<![CDATA[ECB increases key interest rate a quarter point; will the Fed follow?]]>http://www.bloggingstocks.com/2008/07/03/ecb-increases-key-interest-rate-a-quarter-point-will-the-fed-fo/http://www.bloggingstocks.com/2008/07/03/ecb-increases-key-interest-rate-a-quarter-point-will-the-fed-fo/http://www.bloggingstocks.com/2008/07/03/ecb-increases-key-interest-rate-a-quarter-point-will-the-fed-fo/#commentsFiled under: , , , ,

In a move that surprised almost no one, the European Central Bank increased its key interest rate, the refinance rate, a quarter point to 4.25%. The increase brings the refinance rate to its highest level in seven years.

The currency market, which for the most part had already factored-in the ECB rate increase, did not react initially following the decision. The euro was virtually unchanged versus the dollar at $1.5882.

The other major currency pairings also held their ground. The dollar was unchanged against the pound at $1.9884 and the dollar rose slightly, up 0.10 yen to 106.25 yen, versus Japan's yen.

Economist: Trichet 'jumped the gun'

London-based economist Mark Chandler told BloggingStocks Thursday the ECB's decision was no surprise, but that doesn't decrease his disappointment with the ECB's stance.

"I afraid I'm going to really disagree with this one. I understand where [ECB President Jean-Claude] Trichet is coming from, but he's jumped the gun from my perspective. He could have waited another quarter," Chandler said. "There's a real concern now he's going to throw Europe into a recession like America, and if the dollar continues to fall against the euro, his rate increase won't lower inflation all that much. I don't like that bargain at all."

Continue reading ECB increases key interest rate a quarter point; will the Fed follow?

ECB increases key interest rate a quarter point; will the Fed follow? originally appeared on BloggingStocks on Thu, 03 Jul 2008 09:13:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BernankeBritish pounddollarECBeuroEuropean Central BankFedforexinflationinterest ratesinthenewsmonetary policyoil pricesTrichetU.S. Federal ReserveyenThu, 03 Jul 2008 09:13:00 EST<![CDATA[Dollar set to record biggest weekly gain vs euro in three years]]>http://www.bloggingstocks.com/2008/06/13/dollar-set-to-record-biggest-weekly-gain-vs-euro-in-three-years/http://www.bloggingstocks.com/2008/06/13/dollar-set-to-record-biggest-weekly-gain-vs-euro-in-three-years/http://www.bloggingstocks.com/2008/06/13/dollar-set-to-record-biggest-weekly-gain-vs-euro-in-three-years/#commentsFiled under: , , ,

The dollar Friday was poised to record its largest weekly gain versus the euro in three years, on a growing consensus that the U.S. Federal Reserve will increase interest rates soon to check rising U.S. inflation.

The dollar traded up about one-half cent to $1.5372 versus the euro early Friday afternoon - - a level that if sustained at the New York close at 5 p.m. EDT would give the greenback its biggest weekly gain since early 2005, Bloomberg News reported Friday.

The dollar also rose Friday against the other major currencies. The dollar increased about one-half cent to $1.9494 versus the British pound, and about sixth-tenths of a cent to $1.0476 versus the Swiss franc. The dollar was unchanged versus Japan's yen at 107.90 yen.

Continue reading Dollar set to record biggest weekly gain vs euro in three years

Dollar set to record biggest weekly gain vs euro in three years originally appeared on BloggingStocks on Fri, 13 Jun 2008 15:36:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BernankeBritish poundcurrenciesdollarECBeuroEuropean Central BankFedforexinterest ratesinthenewsmonetary policySwiss francTrichetU.S. Federal ReserveyenFri, 13 Jun 2008 15:36:00 EST<![CDATA[Dollar slumps again; so much for the rally]]>http://www.bloggingstocks.com/2008/05/20/dollar-slumps-again-so-much-for-the-rally/http://www.bloggingstocks.com/2008/05/20/dollar-slumps-again-so-much-for-the-rally/http://www.bloggingstocks.com/2008/05/20/dollar-slumps-again-so-much-for-the-rally/#commentsFiled under: , ,

So much for that nascent dollar rally.

The dollar fell against the world's other major currencies Tuesday after the International Monetary Fund cautioned that the U.S. housing slump still poses "serious risks" to financial markets and ZEW President Wolfgang Franz said he thought the ECB would increase interest rates in the near future, Reuters reported Tuesday.

The dollar fell 1.2 cents to $1.5649 versus the euro, about 1.5 cents versus the British pound to $1.9642, and about one-quarter yen to 104.10 versus Japan's yen.

Earlier in the day, IMF First Deputy Managing Director John Lipksy, in prepared remarks, said the IMF still sees "serious risks" to the financial market from the U.S. housing slump -- the U.S.'s worst housing decline in more than 15 years. Lipsky said the housing slump in the world's largest economy is yet to run its course.

Meanwhile, ZEW President Wolfgang Franz jolted the currency market Tuesday by saying he thought the European Central Bank would increase interest rates in the near future.

Continue reading Dollar slumps again; so much for the rally

Dollar slumps again; so much for the rally originally appeared on BloggingStocks on Tue, 20 May 2008 10:10:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>British poundcurrenciesdollarECBeuroEuropean Central BankFedforexIMFinterest ratesInternational Monetary FundinthenewsU.S. Federal ReserveyenTue, 20 May 2008 10:10:00 EST<![CDATA[ECB's Trichet warns about euro-zone inflation...but the dollar still rises]]>http://www.bloggingstocks.com/2008/05/19/ecbs-trichet-warns-about-euro-zone-inflation-but-the-dollar-s/http://www.bloggingstocks.com/2008/05/19/ecbs-trichet-warns-about-euro-zone-inflation-but-the-dollar-s/http://www.bloggingstocks.com/2008/05/19/ecbs-trichet-warns-about-euro-zone-inflation-but-the-dollar-s/#commentsFiled under: , ,

The dollar rose Monday against the world's other major currencies, despite the fact the European Central Bank's president reiterated his concern about rising euro-zone inflation, which suggests there's little chance for an interest rate cut soon on the continent.

The dollar rose about 1 cent to $1.5511 versus the euro and about 1.2 cents versus the British pound to $1.9455. The dollar also gained about one-half yen to 104.68 versus Japan's yen.

The dollar rally occurred despite the fact that ECB President Jean-Claude Trichet reiterated to BBC Radio his concern about rising inflation, and its structural impact on Europe's economy, saying that "price stability ... is the best way to have a high level of sustainable growth and sustainable job creation."

Trichet's intransigence

Despite the U.S. economic slump, which has slowed economic growth both in Europe and in other developed-world markets, the ECB, unlike the U.S. Federal Reserve, hasn't budged regarding short-term interest rates, and kept its key rate at 4%. The ECB has cited the threat to inflation posed by rising oil prices, among other factors, as the primary reason for its stand-pat policy.

Continue reading ECB's Trichet warns about euro-zone inflation...but the dollar still rises

ECB's Trichet warns about euro-zone inflation...but the dollar still rises originally appeared on BloggingStocks on Mon, 19 May 2008 13:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BernankeBritish poundcurrenciesdollarECBeuroEuropean Central BankFedforexinflationinterest ratesinthenewsmonetary policyproducer price indexTrichetU.S. Federal ReserveyenMon, 19 May 2008 13:57:00 EST