Home > Boards > Forex > General > FX

Foreign Exchange Market Daily Update

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
nostinkinc Member Profile
 
Followed By 22
Posts 7,913
Boards Moderated 0
Alias Born 03/15/04
160x600 placeholder
Belgium Business Confidence Falls in September
Business sentiment in Belgium declined in September for the second consecutive month, after reaching a record high level in July.
Top Company News of the Day
Wheat Climbs on Indications of Tighter Supply -- Daily Grain Highlights
Front Month Nymex Natural Gas Rose 0.69% This Week to Settle at $5.1400 -- Data Talk
Front Month Nymex RBOB Gasoline Rose 0.75% This Week to Settle at $2.1875 -- Data Talk
Costco On Pace for Record High Close -- Data Talk
United Airlines Fined $1.9 Million for Violating Transportation Department's Tarmac-Delay Rule
California Attorney General Appeals Purdue Pharma's Sackler Settlement
2Q GDP Still Seen +6.6% -- Data Week Ahead
Italy to Launch Three New Government Bonds in 4Q
DAX Ends the Week 0.27% Higher at 15531.75 -- Data Talk
CAC 40 Index Ends the Week 1.04% Higher at 6638.46 -- Data Talk
STOXX Europe 50 Index Ends the Week 0.82% Higher at 3550.35 -- Data Talk
EURO STOXX 50 Index Ends the Week 0.67% Higher at 4158.51 -- Data Talk
STOXX Europe 600 Index Ends the Week 0.31% Higher at 463.29 -- Data Talk
FTSE 100 Index Ends the Week 1.26% Higher at 7051.48 -- Data Talk
Nike Down After Revenue Miss, Supply Chain Issues
Kansas City Fed Services Activity Index Slips But Stays Positive in September
VC Daily: Question: What to Make of Efforts in Congress to Lower Drug Prices?
Turkish Lira Falls Near Record Lows After Rate Cut; Norges Bank Raises Rates; Purchasing Managers Point to Slowing in U.S. and Europe
U.S. New Home Sales Rose in August
Rite Aid Expands Partnership With Uber
Salesforce.com on Track for Record High Close -- Data Talk
Nike Down Over 6%, on Pace For Largest Percent Decrease Since June 2020 -- Data Talk
Walgreens Rolls Out More Pfizer Booster Shots
Moderna to Supply Covid-19 Vaccine Doses in Peru
Petrofac Shares Rise on Guilty Plea to Seven Counts of Bribery
WPP to Pay $19 Million to Resolve SEC Charges of Anti-Bribery, Accounting Provisions
nostinkinc   Wednesday, 10/24/07 12:05:35 PM
Re: None
Post # of 81 
Foreign Exchange Market Daily Update

Despite initially gaining ground in early morning trading, the U.S. dollar weakened against the Euro and Yen after weaker-than-expected U.S. existing home sales released for the month of September. U.S. home sales fell 8.0 percent in September to a record low of 5.04 million homes.

In other news Merrill Lynch announced a 2.3 billion dollar third-quarter loss with write downs totaling $7.9 billion due to investments in subprime mortgages. The weaker housing report coupled with Merrill Lynch's announcement will all but cement a Fed. rate cut of 25 basis points at next Wednesday's meeting.

The Euro initially weakened against the dollar, yen and pound as traders moved to safer haven investments, but managed to gain some ground on the weak housing data. Also releasing out of the Euro Zone was Manufacturing PMI figures which fell to 51.5 in October, while the services number strengthened to 55.6. Look for the Euro to push higher as fundamentals take focus, with the Euro Zone/U.S. interest rate differential moving in favor of Europe's single currency.

Sterling weakened against both the yen and the dollar as stock markets tumbled and investors pulled money out of the carry trade. With little UK data due out, look for the pound to remain range bound as the market digests a likely rate cut from the Fed. next week.

The Japanese yen strengthened against its U.S. counterpart as the yen-funded carry trade unwound. Also releasing was Japan's merchandise trade surplus which climbed to its highest level at 1,638 billion. Look for the yen to hold on to its gains as investors continue to side line the carry trade.

The Canadian dollar weakened against the greenback as oil dropped. Oil prices fell to $85 a barrel off of Friday's record $90 a barrel. The market will start to look towards Canada's October Business Conditions Survey which is due out on Friday. Look for the loonie to remain range bound ahead of Friday's report.

The Australian and New Zealand dollars initially strengthened on strong Aussie inflation data, but couldn't hold on to their gains against the dollar as carry trades unwound. Australia's consumer price index rose 0.9 percent and was 2.9 percent higher year to date, cementing a rate hike from the Reserve Bank of Australia next month. With a rate hike priced into the market next month in Australia and the Reserve Bank of New Zealand expected to hold overnight rates at 8.25 percent, look for both currencies to track higher.

The Mexican peso weakened after consumer price data came in lower-than-expected at 0.32 percent, while core inflation rose higher-than-expected to 0.21 percent. The market will look towards Friday's Banxico meeting where expectations are that overnight rates will remain on hold at 7.25 percent.


BECAUSE YOU CAN READ THIS, THANK A TEACHER. BECAUSE IT'S IN ENGLISH, THANK A SOLDIER.
Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences