The dollar fell to a record low against the Euro on Friday and was on track for its sixth straight weekly decline, weighed down by fears that losses in risky mortgage debt would hurt consumers and slow U.S. growth. The Dollar also tumbled against the yen as investors unwound bets on risky assets such as stocks and emerging market debt, prompting a slide in U.S. share prices and a broad bid for U.S. Treasury debt that sent yields near six-week lows. (more…)
The dollar edged higher against the euro on Monday, recovering from a record low as dealers awaited economic data later in the week to see if U.S. credit market turmoil has spread to other sectors. (more…)
The sharp fall in oil prices on Tuesday (Brent crude fell $3 per barrel to around $76) shows the lack of support at these high levels. the wobble in prices illustrates the vulnerability of prices when speculative long positions are close to record highs. Analysts continue to expect Brent crude to fall to around $65pb by year-end.The Bank of Japan is expected to raise interest rates at only a glacial pace this year, posing little threat to the carry trade. But worries that weakness in the US sub-prime mortgage market is spreading to the wider economy could cause a flight from risky assets — le (more…)
The Dollar was flat against the Euro on Friday, supported by a six-month high in US Consumer Sentiment and expectations for hawkish comments from the Fed Chairman in testimony this week. Analysts expect Ben Bernanke to tell the US Congress in monetary policy testimony on Wednesday and Thursday that the Federal Reserve is more worried about a flare up in inflation that it is that housing market turbulence may seriously damage the economy. The boost in Consumer Sentiment for July did little to improve the market?s perceptions of the Dollar, despite a surging US stock market. Many traders still e (more…)
