Financial Firms Affect US Dollar

Investors hunt Yen and Swiss Franc on renewed US Financial worries.

News and Events:

The Dollar fell broadly on Thursday as worries of wider credit-related losses at some US financial firms made investors abandon risky trades, starting a rally in the Yen and Swiss Franc. They tend to attract flows during periods of uncertainty as the low interest rates reflect the capital surplus of their respective countries.

Worries over the US financial sector were back on investors' radar screen, with Citigroup cutting its Q3 earnings estimates for Lehman Brothers. It also lowered estimates for Goldman Sachs Group, Merrill Lynch & Co Inc, and Morgan Stanley, citing expected losses on hard-to-sell assets and lower client trading volumes.

ECB policymaker Klaus Liebscher said on Thursday that euro zone growth was expected to come in at the bottom end of expectations this year but an all-out recession in the region was highly unlikely.

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US Financial Turmoil

US financial turmoil is worsening but FX market await data later this week

News and Events:

The Dollar eased on Monday, amid concern losses at US financial companies will continue to weigh on the slowing economy, after Merrill Lynch said Lehman Brothers may post a loss in the Q3 and take an additional $2.5 bio write-down on home loans for the period.

Negative sentiment was completed by comments from Minneapolis Fed President Gary Stern saying that the next two to three quarters could be disappointing.

British house prices fell for a tenth straight month in July causing the EurGbp to rise to a session high of 0.7933 before retreating to last trade at 0.7894. Unexpectedly strong New Zealand trade data lifted NzdUsd 0.54% to 0.7459. But it stayed near the six-month low of 0.7388 traded last Thursday.

Market focus this week will shift to a deluge of data, particularly Q2 US GDP on Thursday and Friday's US jobs figures.

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ForexGen services are all controlled by the international banking and financial regulatory standards.
ForexGen is continuously providing the Forex market's safest trading terms & conditions. Providing professional currency trading services that meet our client's expectations is our first priority.

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Forex News | Dollar VS Oil

Dollar rallies to one-month high on Oil drop and Confidence rise

News and Events:

The Dollar soared to a one-month high against a basket of currencies on Tuesday, benefiting from a steep drop in oil prices and an unexpected rise in US consumer confidence.

Analysts said Merrill Lynch's announcement late on Monday of yet another write-down and capital-raising exercise also helped support the Dollar, as they raised hopes the turning point in the yearlong credit crisis was close.

Oil fell as low as 120.42 yesterday before ending only $2.5 down at 122.19. A decline in oil prices tends to benefit the Dollar, as it eases some of the growth concerns.

Second-quarter US GDP on Thursday and Friday's US non-farm payrolls figures for July will be the market's main focus later this week.

Throughout our partnership with the industrial leaders, we are capable of delivering incomparable quality of online currency trading service.
ForexGen services are all controlled by the international banking and financial regulatory standards.
ForexGen is continuously providing the Forex market's safest trading terms & conditions. Providing professional currency trading services that meet our client's expectations is our first priority.

ForexGen principals:

ForexGen customer satisfaction is our major objective. To reach our business goals, we strive to put our client's goals in focus. We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.

The Forex Market Overview

The Forex Market Overview 10 July 2008

The Usd was stable in Asian session as a lack of real news provided no real impetus for a directional move. EurUsd traded in a 1.5700 - 1.5750 range while UsdJpy slipped from 107.50 to 106.90. Strong Jpy buying spilled over into select carry trades with GbpJpy the hardest hit dropping from 212.30 to 211.40 while AudJpy was able to rally back from early selling to 102.70. Oil was trading at $136.50 barrel after rising above $138 after a sharp fall in U.S. stocks. Gold closed with strong gains, amid geopolitical tensions thus increasing the metals attractiveness as a safe-haven instrument; the most active Aug '08 contract up $5.30 to $928.60. Sep '08 silver +22.0 ¢ at $18.175/oz.

Wall Street fell over 2% as rumours abound that investment banks still have large write-downs to declare. Merrill Lynch fell over 9% after Fitch Ratings indicated that it may cut the banks debt rating. Merrill's along with other U.S. banks report earnings next week. Asian markets are mostly trading mixed this morning in a directionless session. Lenders lost ground in Australia on worries about the US financial sector, but financials came off early lows in volatile trading in Japan and Korea as the markets reversed early declines. European stocks are coming under significant selling pressure, but so far ,US index futures are still in the positive.

With the Aud looking a little vulnerable ( due to deteriorating fundamentals) today’s better then expected employment figure 29.5k vs. 25k exp (prior -19.7k) help give the currency some support.

The highlight of this data devoid day will be the BoE's interest rate announcement. It is universally expected that the MPC will hold rates at 5.00% due to worrying inflationary pressures. Economic activity in the recent month has shown clear deterioration. In addition, negative data from the housing market, industrial sector that has probably fallen into a recession and a consumer spending ready to decelerate significantly. But the BoE members at this point are still leaning to the inflation side of the story which means a strong chance of a technical recession in the UK. With economic indicators well in the region which historically the BoE would be cutting rates, we believe its just a matter of time before rates come down.

Ex Fed President William Poole in a conference yesterday stated he believes that the government-sponsored mortgage companies, Fannie Mae and Freddie Mac, are insolvent. Interesting questions maybe asked of Fed Chairman Bernanke and Treasury Secretary Paulson when they testify on the health of the financial system later today.

17.45gmt - ECB's Trichet speaks
19.30gmt - Fed's Yellen speaks

Daily Forex Pivot Points
AUDUSD
R 3: 0.9670
R 2: 0.9642
R 1: 0.9618
CURRENT: 0.9590
S 1: 0.9545
S 2: 0.9477
S 3: 0.9459

EURJPY
R 3: 169.46
R 2: 169.14
R 1: 168.90
CURRENT: 168.54
S 1: 167.83
S 2: 167.13
S 3: 166.10

USDSGD
R 3: 1.3850
R 2: 1.3827
R 1: 1.3730
CURRENT: 1.3606
S 1: 1.3565
S 2: 1.3505
S 3: 1.3470

The ForexGen's provided services are all restricted and regulated by the international banking and financial regulatory standards. All our provided activities are supported by creativeness and modernization. Ambitious & motivated employees are working simultaneously to protect the customer's confidentiality. ForexGen is continuously providing the market's most competitive conditions.

ForexGen complies with the trade commissions in the USA, EU and Australia. Being registered by the commercial authorities in 18+ countries, we adhere to the United Nations Commission on International Trade Law (UNCITRAL).

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ForexGen is complying with all applicable international laws and all financial regulations and procedures governing its industry in order to sustain the security standards in the financial services world.

Forex News | BoE Rate

Middle-east tensions undermine US Dollar. BoE rate decision due today.

News and Events:

Dollar fall Wednesdays following a rise in oil prices and continued concerns over the financial health of banks and mortgage lenders. Wall Street fell over 2% as rumours abound that investment banks still have large write-downs to declare. Merrill Lynch fell over 9% after Fitch Ratings indicated that it may cut the banks debt rating.

An apparent attack on the US consulate in Istanbul also added to negative global sentiment toward the Dollar.

Oil was trading at $136.50 barrel after rising above $138 after a sharp fall in US stocks and growing middle-east tensions. Gold was up 0.89% to 928.40, amid geopolitical tensions thus increasing the metals attractiveness as a safe-haven instrument.
The BoE will decide interest rate policy later today with little chance of a shift in rates. Recent indicators show the UK heading towards a possible recession. The ForexGen's provided services are all restricted and regulated by the international banking and financial regulatory standards. All our provided activities are supported by creativeness and modernization. Ambitious & motivated employees are working simultaneously to protect the customer's confidentiality. ForexGen is continuously providing the market's most competitive conditions.

ForexGen complies with the trade commissions in the USA, EU and Australia. Being registered by the commercial authorities in 18+ countries, we adhere to the United Nations Commission on International Trade Law (UNCITRAL).

Profile regulatory information:

ForexGen is complying with all applicable international laws and all financial regulations and procedures governing its industry in order to sustain the security standards in the financial services world.

Forex Market Overview

Forex Market Overview 27 June 2008

Usd was slightly stronger in the Asian session after yesterday surging oil prices and worries over growth punished the greenback. EurUsd pulled back from 1.5763 to 1.5724 while GbpUsd followed as 1.9897 to 1.9857. However, the easing of pressure goes against the bearish feel the Usd attracted over recent days and we expect further dollar weakness. US stock markets took a massive dive while crude push to it highest levels ever. Asian stock markets followed the US lower and European equities futures are pointing to a negative open.

Thursday was a red day for US equity markets, as it was for markets in Europe. The S&P500 was lower by nearly 3%, while the DJIA was off by just over 3%, and the NASDAQ by 3.3%. The S&P500 broke through the 1300 level, while crude was moving in the opposite direction crossing the $140 mark, before closing at a record of just under $140. US Economic news out on the day was decent, but was completely overlooked. The summer looks like it's going to be a long one...Oil prices shot up over $140 barrel after the head of OPEC stated that prices could hit $170 barrel this year. Goldman Sachs forecasted more write-downs for Citigroup and they also recommended selling auto shares, this news sent shivers through financial stocks.

Asian markets are unsurprisingly lower this morning, as the Nikkei declines 2.7%, the Hang Seng is down 1.8% and the MSCI A-P is lower by 2.4%. The region is set to return its worst H1 since 1992, as the credit crunch hits home.

In our view Japan's economic data was decidedly negative. Retail sales exceeded market expectations reaching 0.2% but has slowed since February's peak and when you carve out fuel consumption was -0.1% yoy. Household survey's showed real spending was down -3.2% vs. -2.1% exp and Auto sales slowed to 0.2%. In our mind just more evidence that Japan is facing significant headwind on both the domestic & international front and we expect Jpy to suffer.

In the European session markets will be watching EC Economic Sentiment Indicator. This indicator has recently been optimistic regarding economic activity in the euro zone but should fall further today. With the euro at elevated levels and global demand soft industrial confidence should also weaken. However with markets trading off commodity prices and stock markets we don't expect a soft figure will have significant effect on EurUsd strength. In addition, since we are expecting the ECB to hike and NFP to shed over 100k jobs 1.6000 doesn't seem impossible.

Daily Forex Pivot Point
AUDUSD
R 3: 0.9655
R 2: 0.9648
R 1: 0.9604
CURRENT: 0.9582
S 1: 0.9490
S 2: 0.9448
S 3: 0.9405

EURJPY
R 3: 171.00
R 2: 170.00
R 1: 169.15
CURRENT: 168.17
S 1: 166.77
S 2: 166.00
S 3: 165.51

USDSGD
R 3: 1.3850
R 2: 1.3827
R 1: 1.3730
CURRENT: 1.3645
S 1: 1.3635
S 2: 1.3580
S 3: 1.3554

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