Dollar Debate Misses at G8, but Criticism is still there

[Pinalli]

So the Dollar was spared yesterday, spared by a seemingly minor situation in an obscure city in an insignificant province of a very relevant state. The Uighur uprising in China took the debate about the value of the dollar as a global reserve unit off the table at the G8 (due to the fact the Chinese president, Hu Jintao, was forced to leave the summit), however it did not stop the show of concern that America’s counterparts in the G8 had.

Germany, one of the US’s staunchest supporters during the Bush years, have chilled that relationship and have become more openly critical of the Obama administration. In the past, when the German government had a problem with the US’s policies, you read about it weeks after it had been sorted out, George W. Bush had a great relationship with the German Chancellor Merkel, and it showed.

The Dollar is volatile, more than ever before, because traders as well as the long-term investors are unsure of which way to go. Sentiment keeps us in the Dollar, but reality forces us to look away.

I believe the next three months are vital to determining which way the pendulum will swing for the Dollar – and it starts with the criticism of a European leader that an American policy is too liberal. Go figure.

[Pinalli]

The Dollar gained on Friday, after US corporate earnings brought about some concerns over the economy. The corporate numbers brought back the Dollar's safe-haven appeal as the higher yielding currencies retreated from two days of moderate gains.

While corporate earnings were mixed, US economic data helped temper the doomsday mood as home construction numbers came in better than expected.

[Sofia]

Dollar index is still a range bound with slight downward pressure . We strongly feel that a constant hold below 79.35 support will only turn the outlook short term bearish till 77.70 levels.

[Pinalli]

What can one say when the world seems to be coming together nicely? President Obama gave a wonderful speech yesterday about how the US in on the road to recovery. His stimulus packages have helped turn the corner, the stock market is up, thousands of new jobs have been created, and as Hillary Clinton cynically said during the Election “the sky opened up, the sun rose brightly, famine and poverty were erased, as the savior has come.”

[Sofia]

The US Dollar dropped to its lowest of the year against a basket of currencies on Friday. The Fall was spurred on by a rise in the price of oil, a rising stock market prices and data showing an unexpectedly small contraction in the US economy.

Data released on Friday showed that the US gross domestic product (GDP) fell at a slower pace than was originally expected for the second quarter, though the report also showed a steep drop in consumer spending.

[Pinalli]

Originally Posted by Sofia

The US Dollar dropped to its lowest of the year against a basket of currencies on Friday. The Fall was spurred on by a rise in the price of oil, a rising stock market prices and data showing an unexpectedly small contraction in the US economy.

Data released on Friday showed that the US gross domestic product (GDP) fell at a slower pace than was originally expected for the second quarter, though the report also showed a steep drop in consumer spending.

Thanks for the update, the US Dollar had a third consecutive day of gains versus a basket of major currencies on the Monday opening session, as Forex investors continued their trade on better than expected job numbers and in anticipation of the Federal Reserve meeting in the middle of the week.

The key for the Dollar now is determining if the latest trading pattern signaled a breakdown of the recent connection between the currency and general demand for risk.

[Sofia]

The Dollar was mixed on Friday on profit taking versus the high yielding currencies and risk aversion against the Yen, after a data release showed US consumer confidence contracted in August.

The latest in a string of surprisingly bad numbers for the US added to concerns about the overall outlook for the US economy.

The report came on the heels of another piece of data that showed that consumer prices fell year over year by the largest margin since 1950.

[mikey109021]

Germany, one of the US’s best supporters during the george presidents years, have chilled that relationship and have become more critical of the Obama Presidentship. In the past, when the German government had a problem with the US’s policies, you read about it weeks after it had been sorted out, George W. Bush had a great relationship with the German Chancellor Merkel, and it showed.