21 May U.S. Dollar Trading (USD)

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U.S. Dollar Trading (USD)-May

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21 May-U.S. Dollar Trading (USD) was mixed on Friday as despite robust economic data released in the form of the Michigan Survey. A method of measuring consumer sentiment, markets were awaiting a figure of 86.5% (Prior: 87.1%), yet investors were surprised to see the figure released at 88.7% for the month of May. Nonetheless, markets chose to shrug of the boisterous data as investors continued to pair off recent dollar gains. In U.S. share markets, the NASDAQ rose by 19.07 points (+0.75%) whilst the Dow Jones also rose by a further 79.81 points (+0.59%). Crude oil eased ever so slightly by US$0.05 a barrel to US$64.81.

 

[dekac]

23 May U.S. Dollar Trading

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23 May-U.S. Dollar Trading (USD) continued to rebound against a basket of currencies on Tuesday, rallying to a six-week high as traders continued to pare back expectations of a Fed interest rate cut this year. In data specific news the Richmond Fed index was released at -10 (Previous: -11). Investors focused on the first day of a two-day meeting between US Treasury Secretary Henry Paulson and China Vice-Premier Wu Yi in Washington. In early remarks, Paulson warned that Washington was growing increasingly impatient for Beijing to speed up policy changes that would help narrow the record US trade deficit. The US argues that an undervalued Yuan gives China an unfair trade advantage and is a key driver of the deficit. In U.S. share markets the NASDAQ rose by 9.23 points (+0.36%) whilst the Dow Jones fell by 2.93 (-0.02%). Crude oil fell by US$1.30 a barrel to US$64.97 as expectations that supplies would show an increase in tomorrow’s weekly inventories report. Looking ahead, Wednesday’s Mortgage Index and MBA purchase could give an early indication to tier one housing data out on Thursday.

 

[dekac]

24 May U.S. Dollar Trading

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24 May-U.S. Dollar Trading (USD) fell against a basket of majors as positive data from other markets weighed heavy on the USD. Despite mortgage data coming in better than expected for the USD, markets chose to shrug it off cautiously ahead of Thursday’s key housing data release. In other news, US Treasury Secretary Henry Paulson said Chinese officials agreed on the need for more flexibility in the Yuan currency, but he suggested differences remain over the pace of appreciation. In U.S. share markets, the NASDAQ was down 10.97 points (-0.42%) whilst the Dow Jones was also down by -14.30 points (-0.11%). Crude oil rose by US$0.26 a barrel to US$65.77 as stocks rose by more than the forecasted figure yet remained below average supplies. Looking ahead a heavy data day is expected out of the U.S. starting with the release of Durable Goods Orders for the month of April (Forecast: 1%; Prior: 3.7%). In other data out of the U.S. Jobless Claims will also be released be made public with analysts awaiting a figure of 305k worse than the previous 293k. Finally on the data front Home Sales for the month of April will also be released (Forecast: 0.86 mio; Prior: 0.858 mio), with markets paying key attention due recent focus on the housing sector

 

[dekac]

29 May- U.S. Dollar Trading(USD)

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29 May-U.S. Dollar Trading (USD) was closed on Monday for Memorial Day. That being said, tight ranges were experienced across the board with the absence of market volatility. U.S. share markets were also closed for trading to begin the week and remained unchanged from Friday’s close. Crude oil fell by US$0.65 a barrel to US$64.55 as Nigerian oil unions ceased there two day strike. Looking ahead, Consumer Confidence for the month of May will be made public on Tuesday. Markets are expecting a figure of 105 up on the previous 104. In other data Midwest manufacturing (April) data is will also be paid attention to with expectations with the previous figure released 104.3

 

[dekac]

30 May U.S. Dollar Trading (USD)

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30-May U.S. Dollar Trading (USD) slid against most majors before Consumer Confidence came in better than expectations. With markets forecasting a figure of 105 for the month of May, the figure surprised at 108 with the previous revised higher 106.3. In other data releases, Midwest Manufacturing for April was out higher than the previous 104.3 at 104.9. Both pieces of data gave significant support to the USD as earlier losses were paired. In U.S. share markets, the NASDAQ was up by 14.87 points (+0.58%), whilst the Dow Jones was also up by 14.06 points (+0.10%). Crude oil continued to drop in wake of the end to Nigeria strike activity. Crude fell by US$2.05 a barrel to US$63.15. Looking ahead the FOMC minutes of the May 9 meeting is scheduled for release today.

 

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6 June- U.S. Dollar Trading(USD)

6 June-U.S. Dollar Trading (USD) continued to dip below key support levels as comments made by Federal Reserve Chairman Bernanke referred to the U.S. Housing Sector continuing to weigh heavy on the broader economy. In data releases, the non-manufacturing ISM supported the USD as the figure was released at its highest level since April 2006 at 59.7 (Forecast: 55.3) provided some support to the USD capping losses. In other news, US Treasury Secretary Paulson said that some agreements made in recent talks with China will help create the basis for moving towards a market-determined currency exchange rate, but stressed the effort was a long path of small steps. In U.S. share markets, the NASDAQ fell by -7 points (-0.26%), whilst the Dow Jones fell by -80 points (-0.59%). Crude oil fell by US$0.60 to US$65.61 a barrel.

 

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11 June- U.S. Dollar Trading (USD)

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11 June- U.S. Dollar Trading (USD) rebounded broadly against a basket of majors as US treasury yields widened their advantage over other major government bonds amid reduced expectations for interest rate cuts by the Federal Reserve. Futures markets are now anticipating rates to remain unchanged for 2007 and much of 2008. Added to this a sell off in global stocks and bonds, saw liquidation support the dollar. In data specific news, the greenback was also supported by a better than expected Trade Balance figure which indicated that the deficit had indeed narrowed to -58.5 bln than previous -62.39 bln (revised higher). The USD climbed to a two-month high against the Euro, up 0.5%. In U.S. share markets the NASDAQ rose by 32.16 points (+1.27%) whilst the Dow Jones also rose by 157.66 points (+1.19%). Crude oil was sold off to end Friday, dropping by US$2.16 a barrel to US$64.77

 

[dekac]

18 June-U.S. Dollar Trading (USD)

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18 June-U.S. Dollar Trading (USD) eased against a basket of majors, dropping 0.4% against the Euro. The USD suffered on the back of Core CPI data showing a rise at the slowest pace in May since March 2006. Markets had expected a figure of 0.2% for the month, yet the data came in worse at 0.1%. Further more, Factory output had slowed and Consumer confidence declined sharply ceasing recent dollar rallies on the back of U.S. Treasury Yields climbing to five year highs. In other data news, the U.S. current account deficit widened in the first quarter but by less than expected to $192.58 billion from $187.94 billion in the fourth quarter of last year. However, the drop in the USD was somewhat capped as a separate report showed long-term net capital flows into the United States rose in April to $84.1 billion, the highest since January, driven by record net foreign purchases of U.S. stocks by private investors. However, the March numbers were revised down by 16.4Bln. In U.S. share markets, the NASDAQ rose by 27.30 points (+1.05%) whilst the Dow Jones was also up by 85.76 points (+0.63%). Crude oil rose by US$0.35 a barrel to US$68.00 further boosted by tensions in the Middle-east.

 

[dekac]

21 June-U.S. Dollar Trading (USD)

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21 June-U.S. Dollar Trading (USD) was mixed against a basket of currencies as markets leaned towards Fed easing being unlikely. With a lack of data, the USD was essentially flat against the Euro, as the dollar eased from a two month long rally supported by buoyant economic data. In U.S. share markets, the NASDAQ was down 26.8 points (-1.02%) whilst the Dow Jones also fell 146 points (-1.07%). Crude oil eased last night by US$0.91 a barrel to US$68.19 on news that inventories had soared to their highest levels in nine years. Looking ahead, the Philly Fed survey is scheduled for release. Market expectations are that US growth will be confirmed nullifying any rate cut from the central bank, with the figure for June expected to climb from 4.2 to 7.

 

[dekac]

22 June- U.S. Dollar Trading (USD)

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22 June-U.S. Dollar Trading (USD) was mixed across the board as an unexpectedly large gain in Philadelphia area factory output in June provided a momentary boost to the dollar, which has closely tracked bond yields in recent weeks, but the greenback eased as U.S. Treasury yields failed to hold gains. The dollar did end the session relatively unchanged as it surrendered its gains following the highest reading of growth on a regional U.S. economic indicator since April 2005. In U.S. share markets the NASDAQ was up 17 points (+0.65%) whilst the Dow Jones was also up by 56.42 points (+0.42%). Crude oil fell by US$0.26 a barrel to $68.60.

 

[dekac]

28 June- U.S. Dollar Trading (USD)

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28 June-U.S. Dollar Trading (USD) rallied against a basket of currencies in the early part of the European session, before any further rallying was capped with reports showing new orders for durable goods tumbled more than expected in May, the first decline since January. Cautiousness remained ahead of the conclusion of the two day FOMC meeting on Thursday. In U.S. share markets the NASDAQ was up 31.19 points (+1.21%) whilst the Dow Jones was also up by 90.07 points (+0.68%). Crude oil rose by US$1.20 a barrel to US$68.97. Looking ahead, the biggest piece of economic data out of the US to day will be the FOMC announcement, with markets forecasting an unchanged rate of 5.25%. That said, investors will eagerly await accompanying statements made by officials. The Fed rate will be accompanied by GDP for the first quarter will be confirmed at 0.8% (Previous: 0.6%). Other data will be released in the form of Core PCE for the first quarter will also round of the week as forecasts are at 2.2%, unchanged from the previous.