US Treasury Secretary change could lead to weaker dollar.
The USD weakened further today as the market continued to be rattled by a report speculating that a possible replacement for US Treasury Secretary John Snow could favor a weaker greenback, dealers said.
Dealers pinned the blame for the currency’s weakness on an opinion piece in the Times in the UK, which said that President [...]
Forex – Dollar Rally – Short Lived?
Most currency watchers think that any USD rally is likely to prove temporary, given the market’s mounting concerns over the US current account deficit, which stands at around 6 pct of GDP, and expectations of a narrowing in the yield differential between the US and its major competitors.
Read more »Forex – Dollar rises sharply on stronger-than-expected US new homes sales data
The USD rose sharply against major currencies after US new homes sales data came in well above expectations, suggesting that US interest rates could be heading higher.
US new home sales rose by 4.9 pct in April to 1.20 mln units, the highest level so far this year and well above analysts’ expectations for a [...]
The US Current Account Deficit
Is the USD at risk because of America’s enormous current account deficit? Many “experts” are spreading information that is confusing, outdated or simply not applicable. Yes, the current account deficit puts the dollar at risk; at the same time, however, a lower dollar will provide no long-term solution to the current account deficit.
Read more »EUR/USD & GBP/USD in Consolidation Phase?
In the past few days we have seen a bearish scenario develop slowly in the EUR/USD and GBP/USD pairs. The USD rallied mostly on Wednesday as both French and Germany’s economy ministry agreed that an ongoing rise in the euro could harm exports. French Finance Minister Thierry Breton even went further by saying that “everything” [...]
Read more »Aussie Dollar pressured by commodities correction
The Australian dollar (AUD) fell off it’s 2 week low today as the USD gained against major currencies. However the Australian dollar upside was limited due the fall in commodity prices during the few last sessions.
Read more »Markets eye data for clues on USD
The prevailing explanation for the sudden, precipitous fall by the USD is that the Fed is nearing the end of its current monetary tightening cycle, at which point interest rate differentials between the US and the rest of the world will begin to narrow. In this vein, Ben Bernanke’s hint that the Fed might end [...]
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