Greenback Continues to Get Pounded; Fed, Treasury Remain Quiet about Weakness
Japanese Yen Trading Firmer but Traders Cautious about Intervention
Worries about Economy Losing Steam Drives U.S. Dollar Lower
The U.S. Dollar is under pressure against most majors as investor concern that the U.S. economy’s recovery is losing steam drove traders into higher yielding assets. The overnight weakness in the Dollar was triggered by a better than expected economic report in Australia and a strong surge in Asian equities.
Trichet Softens Concerns about Stress Tests; Euro Takes Direction from U.S. Equities
The Euro rallied early, traded in a range then made a move to the upside in a lifeless trade on Thursday. Volume appeared to drop off throughout the day following the European Central Bank’s policy statement announcement shortly before the start of the New York session. For the most part, the Euro seemed to be taking its direction from the U.S. equity markets.
Stocks Fail to Hold Gains; Traders Still Worried about Risk
U.S. stock markets failed to hold onto earlier gains and finished lower for the session. At the midsession, equities were trading higher as speculation that a new U.K. government had been formed helped draw buyers into the market while triggering liquidation by weaker shorts. The news out of the U.K.
Stock Traders Still Concerned about Risk; Focus May Shift to U.S. Economy
Stock investors will have on their radar this week key U.S. economic reports, an alleged Goldman Sachs criminal investigation and continued Euro Zone worries.
U.S. investors will be keying in on several economic reports this week, starting with Monday’s Personal Income and Outlays, ISM Manufacturing, and Construction Spending and ending with Friday’s Non-Farm Payrolls.
Worries about Greece, Economic Slowdown Drive Up U.S. Dollar
The U.S. Dollar was up sharply against all major currencies as investors flocked to safer assets following a poor housing report and concerns about Greece’s ability to shore up its budget deficit. More the most part, it was a quiet trade on Thursday as many big Forex players stood on the sidelines ahead of Friday’s U.S. Non-Farm Payrolls Report.
G-7 Fails to Assure Investors about Euro Zone Risks
The U.S. Dollar had a volatile trade overnight with a slight bias to the downside. Profit-taking was highlighted last night as traders turned a little positive that a solution was going to be reached regarding the escalating deficit issue in Greece. Overbought technical factors even helped to weaken the Dollar.
Week Ends with Forex Traders Still Concerned about Greece Debt Situation
The trading week ended with traders still fearing a widening and deepening debt situation in the Euro Region. Optimistic traders are looking for some solution to be reached by either a “pseudo-bailout” by the European Central Bank or European Union. Legally, the ECB or EU cannot offer an outright bailout package so they may have to figure out a way to get around this restriction.
Bank of Canada Warns about Canadian Dollar’s “persistent strength”
The USD CAD closed higher on Tuesday after the Bank of Canada left interest rates unchanged but warned about the Canadian Dollar’s “persistent strength” and its possible negative impact on the economy. Since October the BoC has been issuing statements regarding the rapid rise in the Canadian Dollar and its potential detrimental effect on the recovering Canadian Dollar.