US Durable Goods Orders come out worse than expected. The British Pound has been under pressure as the Bank of England released its credit conditions survey yesterday. Swedish manufacturing numbers and consumer confidence came out weaker than expected. (more…)
High-yielding currencies which include the Australian and New Zealand dollars, Euro-Yen and Pound-Yen all posted gains while the US Dollar index hit a new low of 78.16. Norway posted a low unemployment figure of 1.8%, down 0.2% from August (2.0%). Gold spot hit $739 this morning on continued demand/supply imbalances. (more…)
The Dollar hit a record low against the Euro for the third straight session on Monday amid fears that a deepening housing slump could pressure on economic growth and trigger more cuts in US interest rates. Investors are worried that weak economic reports will push the Federal Reserve to follow last week’s half-percentage-point rate cut with more policy easing, further eroding the dollar’s yield advantage over other currencies, particularly the Euro. Several Wall Street firms have downgraded their outlook on US Gross Domestic Product over the next several quarters; French presidential aide who (more…)
The Dollar hit a new record low against the euro on Tuesday as a surprise plunge in US consumer confidence to nearly two-year lows raised expectations of another Federal Reserve interest rate cut next month. That view gained more traction on another report on Tuesday showing sales of existing US homes slipped by 4.3% in August, a sign of yet more weakness in the housing market. Interest rate futures are pricing in a 95% chance of a quarter point cut in October, up from 72% on Monday. Some analysts say the prospect of a future euro-zone rate cut or a nearer-term technical rebound mean the Euro’ (more…)