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[Iceland is now open for business once more]]>http://www.bloggingstocks.com/2009/11/01/iceland-is-now-open-for-business-once-more/http://www.bloggingstocks.com/2009/11/01/iceland-is-now-open-for-business-once-more/http://www.bloggingstocks.com/2009/11/01/iceland-is-now-open-for-business-once-more/#commentsFiled under: , ,

You're now free to invest in Iceland ... should you be so inclined. On Sunday, the country will begin lifting its post-financial disaster capital controls, giving investors a bit more elbow room. Foreign currency investments coming in won't be subject to the existing controls.

According to a statement released by Iceland's central bank, "Investors are authorized, without restrictions, to convert into foreign currency the sales proceeds from assets in which they invest after Nov.1." The statement also said, "Previously, non-residents were fully authorized to transfer foreign currency deriving from interest and dividends on investments in Iceland."

Continue reading Iceland is now open for business once more

Iceland is now open for business once more originally appeared on BloggingStocks on Sun, 01 Nov 2009 12:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bailoutbankruptcydenmarkeconomyfinlandforeign currencyforeign exchangeicelandicelandic banksimfinternational monetary fundinthenewskronanorwaypolandreykjavikSun, 01 Nov 2009 12:00:00 EST<![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[Dollar, despite budget deficit, quantitative easing, is still holding its own]]>http://www.bloggingstocks.com/2009/01/13/dollar-despite-budget-deficit-quantitative-easing-is-still-ho/http://www.bloggingstocks.com/2009/01/13/dollar-despite-budget-deficit-quantitative-easing-is-still-ho/http://www.bloggingstocks.com/2009/01/13/dollar-despite-budget-deficit-quantitative-easing-is-still-ho/#commentsFiled under: ,

The U.S. Federal Reserve continues to expand its balance sheet. Further, the U.S. government is piling on debt and public borrowing at almost a faster rate than Mexico and Argentina did during "the bad old days" decades ago.

And yet the dollar continues to hold its own against most of the world's other major currencies. The dollar strengthened about 2 cents against the euro and British pound Tuesday at mid-day, to $1.3190 and $1.4538, respectively. Just as significant, the dollar has strengthened about 11% versus the euro and about 22% versus the pound since October 2008.

Big factor: first in, first out

What's going on here? BloggingStocks asked economist Peter Dawson to provide some clarity.

"Three factors are at work. Most important is the economic cycle. The U.S. was the first to enter a recession and it will likely come out of it sooner than Europe and the U.K., so that's supporting the dollar," Dawson said. "Second, there's still considerable flight-to-safety by stock-shy investors, which almost always increases purchases of U.S. Treasuries, another dollar plus."

Continue reading Dollar, despite budget deficit, quantitative easing, is still holding its own

Dollar, despite budget deficit, quantitative easing, is still holding its own originally appeared on BloggingStocks on Tue, 13 Jan 2009 16:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>British poundcurrenciesdollareuroforeign exchangeyenTue, 13 Jan 2009 16:40:00 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[Major central banks seen tolerating gradual dollar decline, but no 'brutal' moves]]>http://www.bloggingstocks.com/2008/10/05/major-central-banks-seen-tolerating-gradual-dollar-decline-but/http://www.bloggingstocks.com/2008/10/05/major-central-banks-seen-tolerating-gradual-dollar-decline-but/http://www.bloggingstocks.com/2008/10/05/major-central-banks-seen-tolerating-gradual-dollar-decline-but/#commentsFiled under: , , ,

With passage of the rescue bill, and the U.S. Treasury's upcoming actions to stabilize credit markets through a variety of tools/mechanisms, one area that is likely to experience negative consequences is the dollar.

Simply, more dollars borrowed (or more dollars printed) almost always means each dollar is worth less. Economist Richard Felson said a gradual, orderly decline in the dollar "would be expected, and is almost considered the default response, given increased U.S. government borrowing." The dollar closed Friday down about one-half cent to $1.3775 and $1.7713 versus the euro and the British pound, respectively.

Central banks monitoring dollar's level

However, leaders of the world's major industrialized economies will not, in Felson's interpretation, accept a sudden and/or inordinate decline in the dollar. "Along with increased stress on the financial system, 'brutal' currency movements, as [European Central Bank President Jean-Claude] Trichet has said, throws everything out of whack by making it hard for companies to project costs of foreign operations," Felson said. "For these reason and others I believe the major central banks will intervene to support the dollar, should the U.S. Treasury's extra borrowing or the U.S. Federal Reserve's extra lending for the bailout lead to too large or too quick of a decline in the dollar."

Continue reading Major central banks seen tolerating gradual dollar decline, but no 'brutal' moves

Major central banks seen tolerating gradual dollar decline, but no 'brutal' moves originally appeared on BloggingStocks on Sun, 05 Oct 2008 09:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailout billBank of EngandBank of JapanBOEBOJBritish poundcurrenciesdollarECBeurofeaturedFedforeign exchangemonetary policyrescue billU.S. TreasuryyenSun, 05 Oct 2008 09:10:00 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[Investor confidence in global growth continues to decline]]>http://www.bloggingstocks.com/2008/08/21/investor-confidence-in-global-growth-continues-to-decline/http://www.bloggingstocks.com/2008/08/21/investor-confidence-in-global-growth-continues-to-decline/http://www.bloggingstocks.com/2008/08/21/investor-confidence-in-global-growth-continues-to-decline/#commentsFiled under: , , , ,

Japan's yen resumed its rise against higher-interest currencies Thursday, suggesting that the prospect of additional credit market losses continues to lower investors' confidence in global growth and performing assets.

The yen rose as institutional investors continued to decrease their use of the carry trade.

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.

The yen strengthened about 1.6 yen to 160.71 versus euro, about 3 yen to 201.95 versus the British pound, and about 1 yen to 108.20 versus the dollar.

Another big mortgage write-off ahead?

Currency trader Andrew Resnick told BloggingStocks Thursday sentiment is building in the foreign exchange and other markets that there will be "another, major housing-related write-off by a bank or series of banks in the U.S. or U.K, or possibly Fannie Mae (NYSE: FNM) or Freddie Mac (NYSE: FRE) problems."

Continue reading Investor confidence in global growth continues to decline

Investor confidence in global growth continues to decline originally appeared on BloggingStocks on Thu, 21 Aug 2008 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundcarry tradecurrenciesdollareuroFannie MaefeaturedFNMforeign exchangeFREFreddie MacGeorgiainstitutional investorsoil pricesoil shockRussiayenThu, 21 Aug 2008 12:30:00 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[Suddenly, everyone is buying the dollar]]>http://www.bloggingstocks.com/2008/08/09/suddenly-everyone-is-buying-the-dollar/http://www.bloggingstocks.com/2008/08/09/suddenly-everyone-is-buying-the-dollar/http://www.bloggingstocks.com/2008/08/09/suddenly-everyone-is-buying-the-dollar/#commentsFiled under: , , , ,

The much-maligned, beleaguered dollar -- driven lower for nearly a decade by series of unconscionable mistakes by United States' policy makers, may be poised to make a comeback.

But don't try to put those words into the mouth of currency trader Andrew Resnick. No sir. Dollar what? Resnick remains the skeptic of skeptics. There have been too many false break-outs and weak rallies that proved to be mere corrections in the euro's decade-long rise, in Resnick's view, to conclude at this juncture that the worst for the dollar -- and, by extension, for the United States -- is over.

A strong week for the greenback

That said, the week's data points are compelling. The dollar registered its biggest gain in two months against the euro, strengthening to $1.5006 -- or an improvement of almost 3.7% -- an enormous move in the currency market for one week. The dollar also strengthened about 2.1% versus the British pound to $1.9208, and about 2% versus Japan's yen to 110.08 yen.

What has caused the sudden turn of events in the currency market? (We don't want to use more-positive adjectives just yet.) Not the health of the U.S. economy, according to Resnick.

Continue reading Suddenly, everyone is buying the dollar

Suddenly, everyone is buying the dollar originally appeared on BloggingStocks on Sat, 09 Aug 2008 14:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of EnglandBank of JapanBritish poundcurrenciesdollarECBEUeuroeuro zoneEuropean Central BankEuropean UnionFedforeign exchangegdpinterest ratesinthenewsmonetary policyoil pricesU.S. economyU.S. Federal ReserveyenSat, 09 Aug 2008 14:10:00 EST<![CDATA[Dollar rises on U.S. Treasury plan to stabilize Fannie, Freddie]]>http://www.bloggingstocks.com/2008/07/14/dollar-rises-on-u-s-treasury-plan-to-stabilize-fannie-freddie/http://www.bloggingstocks.com/2008/07/14/dollar-rises-on-u-s-treasury-plan-to-stabilize-fannie-freddie/http://www.bloggingstocks.com/2008/07/14/dollar-rises-on-u-s-treasury-plan-to-stabilize-fannie-freddie/#commentsFiled under: , , , ,

Traders on the long side of dollar trades cheered the U.S. Treasury's plan to shore-up Fannie Mae and Freddie Mac, as the dollar rose against the world's other major currencies.

The dollar strengthened about one-half cent to $1.5874 versus the euro and two-tenths of a yen to 106.46 versus Japan's yen in Monday morning trading. The dollar was virtually unchanged against the British pound at $1.9877.

On Sunday night, U.S. Treasury Secretary announced a sweeping rescue package and asked Congress for the authority to buy unlimited stakes in and lend to Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), aiming to head-off a collapse in confidence, Bloomberg News reported Monday. Separately, the U.S. Federal Reserve approved Fannie's and Freddie's ability to borrow directly from the central bank.

'Wait and see approach'

Currency Trader Andrew Resnick told BloggingStocks Monday even though the currency and stock markets have initially reacted favorably to the Treasury's / Fed's measures, many currency traders are taking a "wait and see approach" until they know what financial form the assistance to Fannie and Freddie is likely to take.

Continue reading Dollar rises on U.S. Treasury plan to stabilize Fannie, Freddie

Dollar rises on U.S. Treasury plan to stabilize Fannie, Freddie originally appeared on BloggingStocks on Mon, 14 Jul 2008 11:11:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bond marketBritish poundcredit marketsdollareuroFannie MaeFannieMaeFNMforeign exchangeFREFreddie MacinthenewsmortgagesU.S. TreasuryyenMon, 14 Jul 2008 11:11:00 EST<![CDATA[Dollar rises amid belief May retail sales will boost interest rate hike case]]>http://www.bloggingstocks.com/2008/06/12/dollar-rises-amid-belief-may-retail-sales-will-boost-interest-ra/http://www.bloggingstocks.com/2008/06/12/dollar-rises-amid-belief-may-retail-sales-will-boost-interest-ra/http://www.bloggingstocks.com/2008/06/12/dollar-rises-amid-belief-may-retail-sales-will-boost-interest-ra/#commentsFiled under: ,

The dollar rose more than 1.4 cents against the world's other, major currencies Thursday -- its third large gain in four days -- after traders calculated that better-than-expected May retail sales will prompt the U.S. Federal Reserve to increase interest rates soon, possibly by late summer.

The dollar strengthened 1.4 cents to $1.5400 versus the euro, 1.7 cents to $1.9444 versus the British pound and about 1 yen to 107.92 versus Japan's yen on Thursday at mid-day.

Dollar bulls, subject to numerous false-breakouts during 2008, were encouraged by the most recent U.S. retail sales data. The U.S. Commerce Department Thursday announced that May retail sales rose 1%, double the consensus estimate of economists surveyed by Bloomberg News.

May retail sales surprises traders

Currency trader Andrew Resnick told BloggingStocks Thursday the surprisingly upbeat May retail sales report has not made him a dollar bull, but he's inching closer to it. "It's tough to form a meaningful conclusion with just one data point, but retail sales did take the dollar bears by surprise," Resnick said. "Most were expecting a sort of neutral number, but the May number was not neutral. If anything, it suggests the consumer, while cutting back, has not disappeared from the stage completely."

Still, the favorable May retail sales report was not enough to push Resnick decisively into the dollar bull camp, Fed rate increase this summer or not, and he remains flat, with no open currency positions presently. "We've been led down this dollar recovery road too many times, so for the sake of avoiding a red screen [trading losses], I'm flat," Resnick said. "What's that old saying? 'fool me once, shame on you, fool me twice, shame on me.' "

Continue reading Dollar rises amid belief May retail sales will boost interest rate hike case

Dollar rises amid belief May retail sales will boost interest rate hike case originally appeared on BloggingStocks on Thu, 12 Jun 2008 14:14:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British pounddollareurofeaturedFedforeign exchangeinterest ratesmonetary policyretail salesU.S. Federal ReserveyenThu, 12 Jun 2008 14:14:00 EST<![CDATA[Dollar rallies after U.S. productivity gain, talk of Europe slowdown]]>http://www.bloggingstocks.com/2008/05/07/dollar-rallies-after-u-s-productivity-gain-talk-of-europe-slow/http://www.bloggingstocks.com/2008/05/07/dollar-rallies-after-u-s-productivity-gain-talk-of-europe-slow/http://www.bloggingstocks.com/2008/05/07/dollar-rallies-after-u-s-productivity-gain-talk-of-europe-slow/#commentsFiled under: , ,

The dollar rallied to a six-week high Wednesday after U.S. productivity increased at a larger-than-expected rate and sentiment surfaced that Europe's economy may have slowed considerably.

The dollar rose about 2 cents versus the euro -- a large move in the currency market -- to $1.5370 on Wednesday afternoon. The dollar also gained against the world's other major currencies, rising about 2 cents to $1.9530 versus the British pound? about 0.5 cents to $1.0555 versus the Swiss franc and about one-half yen to 104.85 yen versus Japan's yen.

U.S. productivity gives dollar a lift

Earlier in the day, the U.S. Labor Department announced that U.S. worker productivity increased at a 2.2% annual pace in Q1 2008, well above the 1.7% Bloomberg News survey consensus estimate.

Independent currency trader Andrew Resnick told BloggingStocks Wednesday the Q1 2008 productivity data, combined with a sense that the European Central Bank is behind-the-curve concerning interest rate cuts to deal with slowing economic growth, put traders in dollar-buy mode.

Continue reading Dollar rallies after U.S. productivity gain, talk of Europe slowdown

Dollar rallies after U.S. productivity gain, talk of Europe slowdown originally appeared on BloggingStocks on Wed, 07 May 2008 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundcurrenciescurrency ratesdollarECBeuroEuropeEuropean Central BankfeaturedFedforeign exchangeforexGDPproductivityrecessionSwiss francU.S. Federal ReserveUnited StatesyenWed, 07 May 2008 16:40:00 EST<![CDATA[Dollar rallies on belief Fed is done lowering interest rates]]>http://www.bloggingstocks.com/2008/05/01/dollar-rallies-on-belief-fed-is-done-lowering-interest-rates/http://www.bloggingstocks.com/2008/05/01/dollar-rallies-on-belief-fed-is-done-lowering-interest-rates/http://www.bloggingstocks.com/2008/05/01/dollar-rallies-on-belief-fed-is-done-lowering-interest-rates/#commentsFiled under: , , ,

The dollar rallied to a 5-week high Thursday on the belief the U.S. Federal Reserve will at least pause in its interest rate cutting cycle, as it evaluates the impact of both monetary and fiscal policy stimulus on the sluggish U.S. economy.

The dollar rose more than 2 cents versus the euro -- a large move in the currency market -- to $1.5440 on Thursday at mid-day. The dollar also gained against the world's other major currencies, rising about 2 cents to $1.9730 versus the British pound, about 1.7 cents to $1.0510 versus the Swiss franc, and about 1 yen to 104.50 yen versus Japan's yen.

Dollar rally 'may have legs'

Further, unlike previous fits-and-starts regarding earlier dollar moves higher, independent currency trader Andrew Resnick told BloggingStocks Thursday this dollar rally "may have legs" due to a potential change in fundamentals, in the dollar's favor.

Continue reading Dollar rallies on belief Fed is done lowering interest rates

Dollar rallies on belief Fed is done lowering interest rates originally appeared on BloggingStocks on Thu, 01 May 2008 15:14:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of EnglandBOEBritish poundcurrenciescurrency ratesdollarECBEuopean Central Bankeuroforeign exchangeinflationinterest ratesmonetary policySwiss FrancU.S. Federal ReserveyenThu, 01 May 2008 15:14:00 EST<![CDATA[Dollar rises most vs. euro since 2004 as German confidence tumbles]]>http://www.bloggingstocks.com/2008/04/24/dollar-rises-most-vs-euro-since-2004-as-german-confidence-tumbl/http://www.bloggingstocks.com/2008/04/24/dollar-rises-most-vs-euro-since-2004-as-german-confidence-tumbl/http://www.bloggingstocks.com/2008/04/24/dollar-rises-most-vs-euro-since-2004-as-german-confidence-tumbl/#commentsFiled under: , , ,

A European Central Bank interest rate cut may be up ahead.

At least that was the verdict expressed by currency traders Thursday, who drove the dollar to its largest gain in almost four years after a report indicated that German business confidence dropped in April 2008.

The dollar rallied 2 cents - - an enormous move in the currency market - - to $1.5665 versus the euro Thursday. The dollar also rallied about 1 cent versus the British pound to $1.9705 and about 1 yen to 104.37 yen versus Japan's yen.

Continue reading Dollar rises most vs. euro since 2004 as German confidence tumbles

Dollar rises most vs. euro since 2004 as German confidence tumbles originally appeared on BloggingStocks on Thu, 24 Apr 2008 16:04:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundcurrenciescurrency ratesdollarECBeuroEuropean Central BankFedforeign exchangeinterest ratesmonetary policyU.S. Federal ReserveyenThu, 24 Apr 2008 16:04:00 EST<![CDATA[Dollar falls to record low versus euro after EU inflation accelerates]]>http://www.bloggingstocks.com/2008/04/16/dollar-falls-to-record-low-versus-euro-after-eu-inflation-accele/http://www.bloggingstocks.com/2008/04/16/dollar-falls-to-record-low-versus-euro-after-eu-inflation-accele/http://www.bloggingstocks.com/2008/04/16/dollar-falls-to-record-low-versus-euro-after-eu-inflation-accele/#commentsFiled under: , ,

The battle of psychologies regarding the dollar continues in the currency market.

The dollar fell to an all-time low of $1.5979 versus the euro Wednesday, after an E.U. inflation report indicated accelerating inflation on the continent, reducing the likelihood of a European Central Bank interest rank cut at its next meeting.

Further, a below-consensus, March 2008 U.S. housing stats report and an in-line March 2008 U.S. inflation report also weighed on the dollar: each means that the U.S Federal Reserve will not feel inordinate pressure to pause in its interest-rate-reduction cycle to stimulate the anemic U.S. economy. That's dollar bearish, because, all other factors being equal, money tends to flow to higher-interest-rate currencies and away from lower-interest currencies.

Continue reading Dollar falls to record low versus euro after EU inflation accelerates

Dollar falls to record low versus euro after EU inflation accelerates originally appeared on BloggingStocks on Wed, 16 Apr 2008 17:07:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of EnglandBritish poundbudget deficitcurrencies ratesdollarECBeuroFedforeign exchangemonetary policytrade deficityenWed, 16 Apr 2008 17:07:00 EST<![CDATA[China lets yuan rise versus dollar to help contain inflation]]>http://www.bloggingstocks.com/2008/04/10/china-lets-yuan-rise-versus-dollar-to-help-contain-inflation/http://www.bloggingstocks.com/2008/04/10/china-lets-yuan-rise-versus-dollar-to-help-contain-inflation/http://www.bloggingstocks.com/2008/04/10/china-lets-yuan-rise-versus-dollar-to-help-contain-inflation/#commentsFiled under: , , , , , ,

China let the yuan rise to a record level versus the dollar Friday, Bloomberg News reported, in a sign Beijing may be modifying its currency stance in order to regain control of inflation.

The yuan strengthened to 6.9907 yuan versus the dollar Friday, its strongest level since the Chinese Government moved from a fixed or "dollar pegged" currency rate to a system that limits the yuan's currency appreciation to about 5% per year.

China has kept the yuan artificially low -- or not set by free-market, foreign exchange forces -- in order to stimulate economic growth and protect its young economy. The low yuan keeps the cost of Chinese exports low -- a major factor in both China's record trade surplus with the United States and its surging manufacturing export revenue. Critics charge that the low yuan gives China an unfair advantage versus foreign manufacturers: many of these producers, among others, argue that the yuan would appreciate to 5 or even 4.5 yuan to the dollar if allowed to float freely.

Continue reading China lets yuan rise versus dollar to help contain inflation

China lets yuan rise versus dollar to help contain inflation originally appeared on BloggingStocks on Thu, 10 Apr 2008 16:11:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Chinacommoditiescurrency ratesdollarEUeuroEuropeexportsforeign exchangeglobal economyimportsinflationinthenewstradeUnited StatesyenyuanThu, 10 Apr 2008 16:11:00 EST<![CDATA[Euro hits record $1.59 versus dollar, then falters]]>http://www.bloggingstocks.com/2008/04/10/euro-hits-record-1-59-versus-dollar-then-falters/http://www.bloggingstocks.com/2008/04/10/euro-hits-record-1-59-versus-dollar-then-falters/http://www.bloggingstocks.com/2008/04/10/euro-hits-record-1-59-versus-dollar-then-falters/#commentsFiled under: , ,

The euro hit an all-time of $1.5915 versus the dollar Thursday, only to become subject to an increasingly rare event in currency markets these days - - a dollar rally.

That's right: you read correctly. The dollar rallied, getting off the deck, as it were, from its record-low versus the euro to gain more than 1 cent for the day to trade at $1.5741 late Thursday.

Trading is likely to be calm to inert heading into Friday, due to the G-7 meeting in Washington of the world's major central bankers and finance ministers.

What inspired the dollar's rally? Independent currency trader Andrew Resnick told BloggingStocks the currency markets interpreted Thursday's lower-than-expected 357,000 U.S. initial weekly unemployment claims as a strong point for the ailing U.S. economy. That fact, combined with the belief that the previous week's claims may have been inflated, due to the earlier Easter holiday, sent traders into buy-dollar mode.

Continue reading Euro hits record $1.59 versus dollar, then falters

Euro hits record $1.59 versus dollar, then falters originally appeared on BloggingStocks on Thu, 10 Apr 2008 09:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundcurrency ratesdollareconomic growtheuroforeign exchangeG-7interest ratesmonetary policySwiss francyenThu, 10 Apr 2008 09:15:00 EST<![CDATA[Dollar falls below 100 yen to lowest level since 1995]]>http://www.bloggingstocks.com/2008/03/13/dollar-falls-below-100-yen-to-lowest-level-since-1995/http://www.bloggingstocks.com/2008/03/13/dollar-falls-below-100-yen-to-lowest-level-since-1995/http://www.bloggingstocks.com/2008/03/13/dollar-falls-below-100-yen-to-lowest-level-since-1995/#commentsFiled under: ,

The dollar plunged to a 13-year low versus Japan's yen Thursday, falling below 100 yen to 99.77 yen before recovering somewhat, after the markets received work that the a Carlyle Group fund had moved closer to collapse, Bloomberg News reported Thursday.

The dollar also fell against the world's other, major currencies. The dollar fell about one-half cent to $1.5587 versus the euro, about 1 cent to $2.0350 versus the British pound, and about one-half cent to $1.0088 versus the Swiss franc.

The dollar did recover slightly against the yen to 100.12 yen later in the Asia session, but the plunge to 99.77 represented the dollar's lowest level against the yen since October 1995. During that period of dollar depreciation, the Bank of Japan, Japan's central bank, intervened to support the dollar. Thus far, there's little indication the central bank will do the same today, independent currency trader Andrew Resnick told BloggingStocks Thursday.

Continue reading Dollar falls below 100 yen to lowest level since 1995

Dollar falls below 100 yen to lowest level since 1995 originally appeared on BloggingStocks on Thu, 13 Mar 2008 10:48:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bank of JapanBritish poundcurrenciesdollarforeign exchangeforexinthenewsSwiss franctradeU.S. Federal ReserveyenThu, 13 Mar 2008 10:48:00 EST<![CDATA[ECB's Trichet says he's 'concerned' about euro's rise]]>http://www.bloggingstocks.com/2008/03/10/ecbs-trichet-says-hes-concerned-about-euros-rise/http://www.bloggingstocks.com/2008/03/10/ecbs-trichet-says-hes-concerned-about-euros-rise/http://www.bloggingstocks.com/2008/03/10/ecbs-trichet-says-hes-concerned-about-euros-rise/#commentsFiled under: ,

European Central Bank President Jean-Claude Trichet said he's "concerned" about the euro's appreciation - - his most direct comments since the euro's rise to record levels above $1.50 versus the dollar, Bloomberg News reported Monday.

The euro rose about one-half cent to $1.5407 versus the dollar before retreating to $1.5351 in Monday afternoon trading.

``We're concerned about excessive exchange-rate moves in the present circumstances,'' Trichet told Bloomberg News in Basel, Switzerland Monday. It's the first time Trichet has specifically expressed worry about the currency since November 2007, when he said he opposed "brutal" moves.

Amid a U.S. economic slowdown and U.S. Federal Reserve efforts to stimulate the world's largest economy with interest rate cuts, the ECB has maintained a status-quo monetary policy, keeping its benchmark refinance rate a 4%. That sand-pat policy has contributed to a flight out of the dollar and into the euro, which increases the cost of euro-zone exports to the U.S., if European companies raise prices to compensate for the dollar's depreciation. The euro has risen more than 5% versus the dollar this year, and is up more than 90% since 2001.

Forex Analysis: Trichet's comments came as a surprise. A hawk, Trichet has heretofore underscored the need for monetary policy discipline to contain euro-zone inflation. Further, Trichet has sided with the monetarists' school that argues that foreign exchange rate changes should be market-determined, so long as they are gradual. In addition, the ECB has never intervened in the currency markets to weaken the euro, and last intervened to strengthen it in 2000. No change is expected in that policy given Monday's comments, barring a sudden, large fall in the dollar / rise in the euro.

ECB's Trichet says he's 'concerned' about euro's rise originally appeared on BloggingStocks on Mon, 10 Mar 2008 16:02:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>currenciesdollarECBeuroEuropean Central Bankexchange rateFedforeign exchangeinthenewsmonetary policyTrichetU.S. Federal ReserveMon, 10 Mar 2008 16:02:00 EST