Mid-Day Report: Dollar Weakens as Consolidation Continues, FOMC Minutes Next
Dollar is sharply lower against European majors in early US session as consolidation continues. Technically speaking, as discussed in our technical outlook reports, more upside is still expected in EUR/USD and GBP/USD. Meanwhile, USD/CHF retreats sharply after edging higher to 1.2082 earlier today. Dollar index’s dip below 4 hours 55 EMA argues that some more pull back should be seen before resuming recent rally. Elsewhere, Crude oil, rides on dollar’s retreat and rebounds strongly from intraday low of 53.66 to above 55.6. Focus will now turn to FOMC minutes for inspirations on further volatility. Though, ,markets are pricing in 90% chance of another 50bps cut from Fed on Dec 16 and the minutes will likely have little impact to this view based on current economic and inflation outlook. Read the rest of this entry »
October 17 2008
Markets Stay in Tight Range after Poor US Data
Mid-Day Report: Markets Stay in Tight Range after Poor US Data
Dollar continues to stay in tight range in early US session as poor economic data from US fails to trigger much price action in the financial markets. New residential construction data showed housing market is still in deep recession. Housing starts dropped by -6.3% to 26 years low of 0.82m annualized rate in Sep. Building permits dropped by -8.3% to 27 years low of 0.786m annualized rate. Preliminary reading of U of Michigan consumer sentiments tumbled sharply to 57.5 in Sep. But after all, dollar index remains in tight range above 82 level while most forex pairs are bounded in sideway consolidation. DOW opens lower of lack follow though selling. Crude continues to struggle around above 70 as consolidation continues too even though gold dropped below 800 level again and reached as low as 779.
By : ActionForex
Tagged Under : Building Permits, Consolidation, Construction Data, Dollar Index, Dow, Financial Markets, Forex, Gold, Housing Market, Michigan Consumer, Mid Day, New Construction, New Residential Construction, Pairs, Poor Economic Data, Recession, Sentiments, Tight Range, U Of Michigan
September 08 2008
Economists Pleased with Government Takeover of Fannie Mae, Freddie Mac
(CEP News) - Economists are reacting positively to the largest-ever financial rescue by the U.S. government - the takeover of mortgage giants Fannie Mae and Freddie Mac announced on Sunday. The deal should help to soften mortgage rates and make it easier for Americans to finance a home, which will contribute positively to the troubled housing market, economists say.
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