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U.S. Dollar Finishes Week on High Note

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Dec 11, 2009.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com

    Dollar bulls who wanted to see growth in the labor market and an increase in consumer spending received the latter in the form of a better than expected retail sales report and a jump in consumer sentiment. The bullish response by investors to the friendly retail and consumer confidence numbers is a sign that speculators believe the Fed has enough evidence to hike interest rates sooner than expected.

    The U.S. Dollar soared to the upside to finish the week sharply higher after the government reported better than expected retail sales in November. The increase was more than twice pre-report estimates. The Greenback received an additional boost after the University of Michigan reported a greater than expected uptick in consumer confidence.

    The EUR USD turned the weekly main trend down today when it crossed the main bottom at 1.4625. The current break has already tested 50% of the 1.4045 August bottom to the 1.5144 November top at 1.4594. A further break to 1.4465 is likely if downside momentum continues to build.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.
     
  2. Rider

    Rider New Member

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    The Dow closed at a 14-month high Friday after better-than-expected reports on retail sales and consumer sentiment, but broader gains were limited by tech weakness and a strong dollar.

    Citigroup: Citigroup said Monday that it will return $20 billion in bailout money to the government through a combination of stock and debt offerings.

    Citigroup (C, Fortune 500) said the bulk of the payment will be funded through a $17 billion common stock offering. The company also said Treasury will sell up to $5 billion of the $25 billion in Citigroup common stock it holds shortly, and sell the rest of it over the next year.

    Obama: President Obama met Monday with top executives of some of the nation's biggest banks, including JPMorgan Chase (JPM, Fortune 500), Bank of America (BAC, Fortune 500) and Wells Fargo (WFC, Fortune 500).

    He said his main message to bankers was that banks received extraordinary assistance during the crisis, and now that the industry is back on its feet, it needs to reciprocate. He is expected to urge bankers to provide greater lending, cut back on bonuses and support financial reform efforts.

    Exxon-XTO deal: Dow component Exxon Mobil (XOM, Fortune 500) said it will buy XTO Energy (XTO, Fortune 500) in a $41 billion stock and debt deal that values XTO shares at a 25% premium to its Friday closing price. The deal also includes the assumption of $10 billion in debt.

    Exxon shares fell 4% and limited any gains on the Dow. XTO shares rallied 17%.

    Dubai: Worries that Dubai might default on billions of dollars in debt rattled world markets at the end of last month. But some of those fears have eased over the last few weeks on signs that any fallout will be limited.

    Fears were further soothed Monday after the city-state received $10 billion in financing from Abu Dhabi, another of the United Arab Emirates.

    World markets: Overseas markets gained. In Europe, London's FTSE 100 rose 1%, the German DAX rose 0.8% and France's CAC 40 rose 0.7%. Asian markets rose, with the exception of Japan's Nikkei, which was little changed.

    Dollar: The dollar slipped versus the euro and the yen, turning lower after the recent rally.

    A weak dollar has added to the more than nine-month-old stock rally over the past nine months, giving a boost to dollar-traded commodities, as well as commodity shares and the stocks of companies that do business overseas. But so far in December, the dollar has been mixed or stronger, putting some pressure on stocks.

    Commodities: The weak dollar gave a lift to dollar-traded commodities. COMEX gold for February delivery rose $3.90 to settle at $1,123.80 an ounce. Gold closed at an all-time high of $1,218.30 an ounce earlier this month.

    U.S. light crude oil for January delivery fell 36 cents to settle at $69.51 a barrel on the New York Mercantile Exchange.

    Bonds: Treasury prices rose, lowering the yield on the 10-year note to 3.52% from 3.55% late Friday. Treasury prices and yields move in opposite directions.

    Market breadth was positive. On the New York Stock Exchange, winners topped losers seven to three on volume of 780 million shares. On the Nasdaq, advancers beat decliners eight to five on volume of 1.45 billion shares.
     
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