The US currency snapped a four-day losing streak against the euro, rising from a 14-month low, as investors cautioned their risk activity following further corporate earnings reports. The dollar strengthened as Bank of America earnings fell short of expectations, sparking profit taking in the euro, as well as higher-yielding currencies. The Bank reported losses of $1 billion in the third quarter, which sent equity markets down having rallied on the more positive earnings of other major US banks and corporations earlier in the week. This report aided the dollar, strengthening haven appeal and bringing the US currency up from multi-month lows against the euro.
Posts Tagged ‘Losses’
The single currency slipped back on Friday following weak Bank of America earnings
Posted by admin on October 19th, 2009
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Euphoria over the corporate reporting continues
Posted by admin on October 15th, 2009
Currently scheduled reports earnings Citigroup, Goldman Sachs and Google. If the results exceed expectations, stock markets continue to rise.Bank “JPMorgan” yesterday issued a strong quarterly report, which, together with the report “Intel” has become the main acting force growth on the stock exchanges. Income Statement JPM consisted of two parts: the investment bank recorded record revenue, but the strongest credit division had suffered losses and signaled a possible new losses.The current strengthening of equity markets was strong enough, but the lack of internal corporate customers and increased demand for funds with fixed income indicate that the rally outliving itself; until the 2009 fixed-income funds have attracted 18 times more investment than stocks.Results of the printed record of the Federal Committee on Peacekeeping Operations on the open market in the U.S. triggered selling of the dollar, as the majority of committee members were in favor of an increase in purchase of assets to stimulate economic recovery.Saxo Bank
Sterling has picked itself up from multi-year lows against the kiwi, buoyed by improving economic sentiment
Posted by admin on October 15th, 2009
The pound was able to reverse a four day slide against the kiwi yesterday, following positive data in the UK labour market. Figures showed that fewer than expected Britons claimed for unemployment benefit month-on-month in September, and the overall unemployment rate held steady at 7.9%, beating market expectations of a rise to 8.0%. The kiwi also suffered after some investors turned bearish following weak US retail sales, which fell in September by the largest amount in 2009, driven by a fall in car sales at the end of the country’s scrappage scheme.
Sterling is making strong headway against a weakened dollar, advancing towards 1.62
Posted by admin on October 15th, 2009
Sterling made strong gains in early trading yesterday following better-than-expected employment data, but the price pulled back to close up 0.4% at $1.5980. The number of UK jobless claiming unemployment benefit rose by 20.8K in September, less than the forecast figure of 25.1K, and the smallest rise since May 2008, enabling the pound to post an intra-week high of $1.6022. The greenback also suffered from comments made on Tuesday evening from Fed Vice Chairman Donald Kohn, which supported speculation that the dollar downtrend will be broad and continuous for some time to come.However, the dollar trimmed its losses in the afternoon following a drop in sales figures.
Bearish sentiment towards the pound prevailed yesterday, but the sterling is rallying strongly against the euro today
Posted by admin on October 15th, 2009
The pound relinquished early gains against the single currency, closing marginally down at 1.0704 as rising risk appetite benefited the euro. Sterling initially rose against the single currency yesterday after data showed a smaller than expected rise in the number of UK jobless claiming benefits, and the overall unemployment rate unexpectedly held at 7.9%. This data prompted investors to further pare back some of the heavy bets built up against sterling in recent weeks, which have pushed the price to multi-month lows. In addition, some analysts have said that speculation over an extension of quantitative easing could be overdone, and that the pound / euro price could have correction potential.
Data on retail sales have supported the dollar
Posted by admin on October 14th, 2009
The report on retail sales drop in September, which turned out to be weaker than analysts expected has had a positive impact on the dollar, which currently continues to demonstrate the desire to recover some losses . However, dealers noted that interest in selling the U.S. currency is still strong enough to keep her from the more active correction. Currency strategists RBS, meanwhile, see the risks of further dollar decline, given the continuing concerns that the situation in the economy for some time will not allow the Fed to start raising rates.
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The pound/US dollar price is slowly rising as investors broadly sell the greenback
Posted by admin on October 14th, 2009
Having made early losses, the pound recovered ground in afternoon trading following positive comments from the BoE Deputy Governor, Charles Bean.The pound initially fell against the dollar after consumer prices last month rose 1.1%, down from 1.6% in August according to the Office for National Statistics, which was below the 1.3% prediction. Prime Minister Gordon Brown also said that government had to ensure that the recovery is not going to be derailed, suggesting that stimulus measures would not be removed anytime soon.However, in the afternoon, the pound rebounded strongly, following the words of Deputy Governor Bean who stated in a speech that the British economy has hit rock bottom and the worst fears of earlier in the year are unfounded. In addition there was a substantial return to dollar selling in the market, spurred by persistent expectations for low US interest rates, and investor appetite for high-yielding currencies.Sterling has continued to edge upwards in trading this morning, though unemployment data, which is released at 09:30BST and is forecast to reveal a higher claimant count, could hamper demand.
Bollinger Bandwidth MT4 Indicator
Posted by admin on October 12th, 2009
An investigation of the Bollinger band has shown that when the bandwidth (distance between the top and bottom bands) is below 4, the market is compressed and about to break out. When the bandwidth reaches 11, there is a strong wave for scalp trading.Between these numbers the currency pair is weak or compressed and has limited movement which might result in taking more losses than earnings. This indicator allows you to quickly see the value of the bandwidth and utilize it to your advantage. This is simply modified code of the original Bands.mq4 indicator.Tested on EUR/USD.
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Exchange Rate Risk
Posted by Tushar Mathur on October 8th, 2009
Exchange rate risk is one of the four risks associated with the worldwide foreign exchange market. The market supply and demand for currencies shifts continuously and its consequences lead to the exchange rate risk on an outstanding forex position. An outstanding position is always subject to the changes in the prices of currencies thereby leading to exchange rate risk. These positions can be managed so that the losses can be cut short and profitable positions can be carried forward. The main dealers in the currency markets i.e., the Banks and traders use their analysis, skills and experiences to employ certain limits for the said purposes.
A rise in risk aversion weighed on the pound on Friday, supporting dollar gains
Posted by admin on October 5th, 2009
The pound slid against the dollar on Friday, completing its third straight weekly decline, as demand for the haven currency found support from weak US employment data.In early trading, risk appetite was down, with investors taking up defensive positions ahead of an expected rise in US unemployment figures. However with weak data already priced into the market, the pound avoided a further sell off after data confirmed an increase in jobless figures that brought overall unemployment in the US to 9.8%. The data did trigger a sharp fall in major stock indices, with traders concerned that the global recovery is struggling to find momentum.
Weak US data yesterday afternoon strengthened dollar appeal, trimming sterling’s gains
Posted by admin on October 1st, 2009
A mixed bag of data in the US prevented the pound from sustaining early gains yesterday, eventually closing just 0.1% up on the day at $1.5980. The pound shot up against the dollar in early trading, posting an intra-day high of 1.6123, after an industry report showed consumer confidence in the U.K. jumped by the most in 14 years. But the greenback trimmed its losses after the ADP Non-farms employment data revealed a worse-than-expected change in US employment which eased risk appetite and returned investors to the haven currency. The sharp dip, was initially offset as more data revealed an upward revision in the US GDP figure to just a 0.7% contraction from a previous -1.0%, and beating forecasts of a downward revision.
Positve UK data enabled the pound to reverse losses against the aussie yesterday
Posted by admin on September 30th, 2009
The pound reversed recent losses to gain 0.75% on the aussie yesterday in the wake of some positive economic data, which spurred investor demand. A GDP revision showed that British output contracted 0.6% in the second quarter compared with activity in the first three months of 2009, better than the previous estimate of -0.7%, according to the Office for National Statistics This data was supported by higher realised sales and an increase in net lending to individuals, which, together, underlined hopes that the UK should pull out of recession in the 3 rd quarter.
Pound fell lower against the dollar yesterday, but found some support to ease its rate of decline
Posted by admin on September 29th, 2009
Sterling fell as persistent bearish sentiment pushed it to an intra-day four-month low of $1.5796 against the dollar, before closing at $1.5882.The pound managed to pull back slightly from early losses after Chancellor Alistair Darling made a speech in which he reiterated the need to curb “reckless” bonuses. His comments suggested that the government would be taking forceful steps to firm up the fragile banking system which returned a certain amount of confidence to investors and prevented the pound from falling further. The pound also benefited from slight profit taking and rising stocks, but analysts said that despite expectations for improving economic data, the sterling / dollar price looks vulnerable to a further downside push with strong resistance materialising around 1.5750.
Bearish sentiment towards the pound on Friday allowed the kiwi to make substantial gains
Posted by admin on September 28th, 2009
The kiwi dollar climbed another 1.2% on Friday, as demand for the high yield currency remained strong in the wake of positive economic data. Investors continued to move their funds into the riskier currency on Friday as data in the US revealed a strengthening economic recovery. Selling pressure on the pound was also high on Friday as comments from the BoE revealed their willingness to see the currency remain weak, undermining investor confidence. The kiwi also received support from a slight rise in oil prices. The New Zealand dollar tends to fair well when commodity prices are on the up owing to the nature of the economy.
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Sterling is currently trading higher against the aussie following upbeat comments and a move to cash profits
Sterling recovered some of its recent extensive losses against the aussie dollar yesterday, climbing over two cents, to close up at 1.7668. Bank of England member, Paul Fisher, said yesterday that policy makers would be more likely to pause asset purchases in their upcoming meeting in November, giving themselves the option of “doing more later,” rather than stopping them. His comments were taken to read that the MPC is unlikely to extend their quantitative easing programme, supporting a slight rise in confidence in the UK economy, strengthening the pound. In broad terms, the aussie traded strongly against most currencies yesterday as positive economic data in the US led to investors adding to their long positions in the higher-yielding currency.
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