All Posts Tagged With: "euro"
Dollar Rushes Higher, Treasury and the Fed Make Support Talk
In the currency market, the dollar moved sharply higher against the euro. Late Tuesday, the euro was trading at $1.5784 vs. $1.5923 on Monday.
Top officials were out jawboning to beat the band in an effort to talk up the buck yesterday.
Philadelphia Federal Reserve Bank President Charles Plosser said in a speech that the accommodative monetary policy is coming to an end and that rate hikes are on the way.
Plosser, a voting member of the Federal Open Market Committee this year, said that, “We will need to reverse course — the exact timing depends on how the economy evolves, but I anticipate the reversal will need to be started sooner rather than later.”
Treasury Secretary Paulson chipped in, saying that a strong dollar is “very important.”
He also said that, “I believe that the United States is on the right path to resolving market disruptions and building a stronger financial system,” but that “working through the current turmoil will take additional time,” and there will be more “bumps in the road.”
Paulson called on Congress to pass this week his proposal to back stop Fannie Mae (FNM) and Freddie Mac (FRE). The two companies need a world-class regulator, he said, adding that Federal Reserve must have a role in setting their capital standards.
Source: Dollar Rushes Higher, Treasury and the Fed Make Support Talk
Taking On Risk Again!
Inflation in Zimbabwe is so bad… (That’s when you say, ‘How bad is it?’)… It’s so bad that they are going to introduce a new 100 billion dollar note, that’s only worth $125!
Gold Is Approaching Its Finest Hour Since January 1980
This is a strong recommendation from Commodity Trend Alert editor Eric Roseman.
Gold spot prices are still roughly 55 percent below their inflation-adjusted January 1980 high. And Eric reckons gold prices are heading much higher before this bull lays to rest.
That’s because this marks the first time in history that every facet supporting the bull market in gold is riding on steroids…
Dollar Edges up on Euro
In the currency market, the dollar edged higher against the euro. Late Friday, the euro was trading at $1.5841 vs. $1.5859 on Thursday.
Dollar Edges Up
In the currency market, the dollar edged marginally higher against the euro. Late Thursday, the euro was trading at $1.5812 vs. $1.5823 on Wednesday.
Dollar Shows Strength, Traders Banking on Fed Reversing Rate Policy
In the currency market, the dollar rallied against the euro. Late Wednesday, the euro was trading at $1.5823 vs. $1.5899 on Tuesday.
Traders were scrutinizing the release of the minutes from the last Fed meeting, searching for the future direction of interest rates, and apparently decided from the mixed signals that the Fed is about to turn hawkish on inflation.
As Dow Jones Marketwatch reported: “Some members said the Fed had aggressively cut rates to 2% to guard against downside risks to growth and now that these risks had ‘diminished’ that ‘some firming in policy would be appropriate very soon.’
“But other FOMC members said financial conditions were still too fragile and borrowing costs were higher for consumers than before the Fed starting cutting rates last fall.
“The minutes show a clear divide and intense debate between one camp that favored rate hikes sooner rather than later and others who believed the outlook was still uncertain at best.”
Those who think the Fed will have to raise rates got support from the day’s most important numbers. The Labor Department reported that the consumer price index rose by 1.1% in June. It was the biggest monthly increase since Hurricane Katrina nearly three years ago, and well above economists’ expectations for a 0.8% gain.
CPI was led higher by a 6.6% jump in energy prices and a 0.8% increase in food prices.
“The Fed will face an ongoing inflation threat that will eventually require a policy response that we continue to expect before year-end,” wrote Michael Englund, chief economist for Action Economics.
Source: Dollar Shows Strength, Traders Banking on Fed Reversing Rate Policy
Dollar Hits All-time low vs Euro before Rallying; Bernanke gives Ambivalent Testimony to Congress
In the currency market, the dollar rallied from $1.6036, a new alltime low against the euro, clawing its way just back into positive territory. Late Tuesday, the euro was trading at $1.5899 vs. $1.5904 on Monday. Traders were carefully watching Fed Chair Ben Bernanke’s testimony to Congress on the state of the economy.
Weak Data Will Send Dollar To New Depths
The Daily Reckoning’s currency expert Chuck Butler says the dollar is being taken to the woodshed. The greenback is losing ground against all major currencies as the credit crisis continues to wreak havoc in the U.S economy. Chuck says disappointing inflation or retail sales data this week will send the dollar to new depths…
Chuck Butler’s Currency Round Up
Bond king backs the dollar… Hawkish ECB will support euro… Euro-wannabies follow the euro… Aussie dollar heading for parity… Canadian loonie looking good…
Dollar Gets a Slight Bounce, but Optimism over Fannie/Freddie Quickly Wears Off
In the currency market, the dollar lost much of its early gains against the euro, but managed to hang on in positive territory. Late Monday, the euro was trading at $1.5904 vs. $1.5931 on Friday.
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