Dollar Firm
May 29th, 2008 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar firmed for a second day against the euro. Late Wednesday, the euro was trading at $1.564 vs. $1.5696 on Tuesday.
Dollar traders were buoyed by economic news that—what else?—was not as bad as it might have been.
The Commerce Department reported that new orders for U.S.-made durable goods fell only 0.5% in April. While a second straight monthly decline in durables is not particularly good, that number was well below the 2.8% drop projected by economists.
And it had some analysts beaming.
“This was a decent report and seems to indicate that the economy has far from collapsed…there is a real chance we escape with maybe only one negative quarter of growth,” said Joel Naroff, president of Naroff Economic Advisors.
But others were less sanguine and urged a wait-and-see approach since durable goods orders are down 3.4% year-over-year, and the hit from higher oil prices is mostly yet to be felt. “We expect a much weaker report in May,” commented Ian Shepherdson, of High Frequency Economics.
Source: Dollar Firm
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.