What's happening with USD

[andy003]

The JPY slipped against major currencies, which follows strong gains in Tokyo share prices; where as GBP jumped after Brighter British housing data gave investors the opportunity to test higher ground for the currency.

On Wednesday, GBP hit a three-months high against the USD because of Forex updates the rate of decline in the house prices in England and Wales moderated to more slow in this year and sale amount raised up from record low levels.

Higher yielding currencies like the AUD and GBP were also getting a pick up against the JPY.

A trader at Japanese banks said that the crosses versus the yen are being bought by temporary players, mostly foreign hedge funds.

US data presented consumer prices posted their first 12-months fall in almost 54 years in March and industrial production fell down further. But the Federal Reserve said that economic activity is some parts of economy seem to be stabilizing.

 

[andy003]

Overall, the Sunday session began with traders looking to drop risk and buy the protection of the USD. It looks this has been the tendency over the last some days of trading and the market seems pretty happy to take it through. The US and the European calendar remain silent, as there are no significant reports planned.

 

[Sinnerman]

Higher yielding currencies like the AUD and GBP were also getting a pick up against the JPY.

You know the world is in trouble when a 0.50% target rate currency is considered a high yielder...

I'm sorry to be the one to have to tell you this, but the interest rate to currency valuation correlation has been dead as long as Lehman Bros.

 

[andy003]

The market traded diverse during the Asian session, regaining a breath after a very strong trading day felled on Monday. According to Forex updates it seems that US futures led the USD index higher, as it has been the case over the last session of trading. Ahead, the European calendar is filled with vital release, something that will maybe influence the currency market.

 

[andy003]

You know the world is in trouble when a 0.50% target rate currency is considered a high yielder...

I'm sorry to be the one to have to tell you this, but the interest rate to currency valuation correlation has been dead as long as Lehman Bros.

Yes, I agree with you...

 

[andy003]

According to Forex updates the USD end the day weaker against all the major currencies, excluding the Pound, which lost ground after it was reported the UK economy contracted much more than predicted in the first quarter of 2009. US goods orders fell down by 0.8% while the core number fell down by 0.6%.

 

[andy003]

The USD jumped down to its lowest in a month against the JPY but rose against the NZD and AUD and edged higher against the Euro.

 

[andy003]

the USD dropped, hitting 7-month downs against the AUD as investor confidence about the worlds economy encouraged purchasing of commodities and riskier currencies.

 

[Pinalli]

As investors bought up European and American stocks the US Dollar suffered on Monday as risk appetite returned with a loud bang. Part of the reason for the lack of demand for the safe haven Dollar was a report out of China that showed a 9 month high in manufacturing activity and a 3.2% rise in US home sales. The theme of Monday seemed to be a fundamental shift in investor attitude as fears of a deepening recession retreated and the bulls came back – if only for a short while. Thursday the US government will release the results of the bank stress tests and already there is speculation that the results will not be received well. Wells Fargo and Citigroup, it is rumored, will require additional funding and Bank of America is denying that they will. In all, of the 18 banks surveyed, it is thought that nearly half of the banks will require more capitalization. Forex online experts says if this turns out to be accurate, it is a sign that things might not be as rosy as investors feel they are today.

 

[JEAN]

The Usd was stronger in the Asian session, as the focus on the US bank stress test results intensified.
The EurUsd traded down to 1.3247 from 1.3320, while the UsdJpy fell to 97.95 from 98.97..Yen's crosses were sold off after the newswires suggested a large US bank would need additional capital…

 

[andy003]

The USD jumped back from a 4 month low against major currencies, after investors gained profits from increase in other riskier currencies that lifted up by good hopes about the U.S. banking system.

 

[Pinalli]

The US Dollar gained broadly on Monday after several down sessions towards the end of last week. Investors were digesting the US unemployment report which initially were seen to have come in better than expected, and the results of the stress test which showed that 10 major banks need to raise more capital in order to stave off insolvency. The risk rally that resulted from the seemingly positive numbers last week stalled after HSBC Bank said that while their first quarter profits were up, they would have been down had it not been for new reporting rules which allowed them to exclude certain investments. This brought a reality check to investors who were celebrating the end the recession.

At 11:00PM GMT, the Dollar was up .39% to the Euro to 1.358, down 1.12% to the Japanese Yen to 97.35, up .77% to the British Pound to 1.5114, up 1.4% to the Canadian Dollar to 1.1656, up 1.25% to the Australian Dollar to .7588 and up .4% to the Swiss Franc to 1.1091.

 

[JEAN]

Dollar's reaction to the retail sales

The dollar is climbing given the rise in risk aversion.
The EurUsd just broke the support at 1.3600. If the trend continues, the next target is found at 1.3550.

 

[andy003]

According to latest Forex updates on Friday the USD strengthened as economic releases were positive, the equity markets lowered on the comments of FDIC Chairman Sheila Bair that the heads of some banks may be replaced.

 

[andy003]

Stocks were off lows, though, having previous traded in excess of 1 percent lower. This assisted take a few of the shine off the U.S. currency, at the same time as apprehension over the flaw of the Japanese financial system also took the JPY which characteristically increases as well when stocks drop off an prior two-month tall versus the USD.

 

[Pinalli]

A sharp rise in stocks, particularly in US markets and crude oil prices gave investors the feeling that the global economic crisis might be easing. This sentiment helped the commodity currencies such as the Australian, Canadian and New Zealand Dollars as they all saw increase recently.

 

[JEAN]

"Memorial Day"

US stocks will be closed today since it’s "Memorial Day" holiday, which will reduce the investors' commercial activity…

 

[Pinalli]

US stocks will be closed today since it’s "Memorial Day" holiday, which will reduce the investors' commercial activity…

You are right!!! its a national holiday!!! 😉

 

[JEAN]

US GDP

The US GDP was worse than expected to a -5, 5%. Usd is falling against the eur, gbp &jpy

 

[Pinalli]

The US GDP was worse than expected to a -5, 5%. Usd is falling against the eur, gbp &jpy

The Dollars problems were heightened late in the trading session after word emerged that US automaker General Motors will file for bankruptcy on Monday after it failed to negotiate a settlement with bondholders. Based on its commitments, the US government will take a 70% stake in the carmaker having already invested 20 Billion Dollars.