The United States and other major industrial nations will join Japan in a highly unusual effort to stabilize the value of the yen by intervening in currency markets, the Group of 7 nations announced Thursday night.
The U.S. Dollar is called to open slightly better against most major currency markets this morning in a continuation of the move which began Sunday night. At that time traders pinned the start of the rally on the potential economic rift between the U.S. and China. With China accusing the U.S.
The U.S. Dollar is expected to open higher against most majors this morning as demand for risk dropped overnight after European stock markets weakened. Economic news released last night and early this morning also contributed to movement in the foreign currency markets.
The U.S. Dollar is trading mixed overnight following a strong rise yesterday. Yesterday’s much anticipated break in the equity markets triggered a risk aversion rally in the foreign currency markets encouraging investors to seek the safety of the Dollar.
The theme this morning in the currency markets is risk aversion as Chinese stocks fell nearly 7% overnight triggering a move into the safety of the U.S. Dollar. Sentiment continues to build that the Chinese government will attempt to curb over capacity in the economy by restricting the practice of reckless lending.
The theme this morning in the currency markets is risk aversion as Chinese stocks fell nearly 7% overnight triggering a move into the safety of the U.S. Dollar. Sentiment continues to build that the Chinese government will attempt to curb over capacity in the economy by restricting the practice of reckless lending.
This week’s action in the foreign currency markets has been dominated by choppy, two-sided trading. Traders seem to be looking for improved risk appetite but can’t find the catalyst that will propel the markets to new highs for the year.
The U.S. Dollar is expected to open lower this morning as speculators brace for the U.S. Gross Domestic Product Report which is expected to show that the recession eased during the second quarter. Today’s report is expected to show a second quarter decline of 1.5% versus a drop of 5.5% in the first quarter.
