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Dollar Traded At ItsTitle:
The Euro and You
“Global regulators…have no real sense of what type of contagion effect would occur if Greece were to default,” observes Michael Lewitt in the June 16, 2011, edition of The Credit Strategist. “No doubt they believe it is significant enough that they are willing to do virtually anything humanly possible to prevent this scenario from unfolding.”
Lewitt is demonstrably correct. Since 2007, global bureaucrats have broken any law that has hindered their attempts to ward off our inevitable reckoning. Attempts to prevent a euro eruption have become preposterous. The European Central Bank (ECB) is clearly in extremis.
A week does not go by without the ECB reducing its standards of collateral. The cost is not only its credibility as a central bank, but in the composition of its deteriorating ...
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Loonie Declines vs. Greenback, Remains Strong vs. Majors
The Canadian dollar weakened versus its US counterpart as the problems in Europe and prospects of slower economic growth in China made the US currency more preferable to the Canadian one.
Italy is now yet another country that may require help from its European peers, while Greece still undermines confidence in the future of the Eurozone. In such an unfavorable environment growth-related currencies usually retreat, making safe currencies, like the US dollar and the yen, more attractive. Yet the loonie is holding relatively well and posted gains against 10 of 16 major currencies.
Tom Levinson, a foreign-exchange strategist at ING Bank NV, made comment about the loonie’s performance:
With Canada, they’re kind of brushing off this labor report in the US, whereas everywhere else seems to ...
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British Inflation under Review Today
British manufacturing and housing both appear to be offering solid signs of economic growth, though its industrial production data last week was mildly disappointing. Most speculators view the UK as only a slightly better investment option than the euro zone residing to its south and east. Markets may capitalize on this by holding their GBP positions longer, but the region's bearish move has some investors uneasy about such positions. Today's 9:30 GMT release of inflationary data will help fill in several of the missing data points.
Economic News
USD - USD Rising from European Debt Contagion Fear, EUR Decline
The US dollar was seen increasing yesterday as traders began to seek shelter following speculation that Italy was experiencing symptoms of a debt contagion caught as a byproduct ...
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The Green Benjamin is using the present conjuncture to gain strength
Present fears pulled down the high-yielding currencies today to permit the support the U.S. dollar to gain strength against the other major currencies except the Japanese low-yielding national money as it is strongly speculated that the region’s debt crisis will spread to Italy and China’s inflation surged to a three-year high.
Accordingly we can watch the dollar index; which measures the performance of the dollar against six major currencies including the euro and the Japanese yen and the pound sterling, risen on the chart for one day, currently trading at levels of 75.91, with the highest level during the day at 76.16 since the opening levels.
Whereas gold traded at levels 1$547.53 per ounce compared with the levels of the opening, which amounted to 1542.11 dollars an ounce, while U.S. ...
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U.S. wheat slips on harvest pressure, corn down
(Reuters) - Chicago corn and wheat futures slid on Monday as weak economic data from China and the United States weighed, following last week's gains that were led by strong physical demand.
Asian stocks were on the backfoot as the weak economic data renewed concerns about the health of the global economy while the euro looked vulnerable before an emergency meeting to stem a spreading debt crisis.
"In terms what we are seeing in wider markets, we have crude oil trading touch lower and U.S. dollar higher, which is continuation of risk aversion that swept through global markets on Friday," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.
"It is bearish outside influences and possibly some profit-taking after last week's rally."
The wheat market came under added ...
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YouTradeFX Daily Market Analysis : 11/07/2011
www.youtradefx.com
EUR/USD
The euro – dollar pair opened the week's trading with a downwards price gap against the background of fears regarding the spread of the European debt crisis in the direction of Italy. On the pair's short graph it is possible to identify the support level at 1.4180 that has successfully stopped the pair's deterioration – at least for the time being. The combination of a strong support level and the statistical fact that in 72% of cases, the price gap closes on the same day makes it possible that we have here an excellent buy opportunity with a price target, for the short term, close to the resistance level of 1.4335 and a medium term price target to be found at the resistance level of 1.4700.
In the case of the euro specifically, and also against the background ...
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Precious Metals Rising amid Risk Uncertainty
The price of precious metals like Gold, Silver, and Platinum found support this past week despite the rising strength of the US dollar, the currency in which such assets are valued. Gold has been trading with rather mild price action since this past April, but traders have been awaiting price resurgence due to the rampant increase in risk aversion due to rising tensions from Greece and dismal jobs reports out of the US. So far, this resurgence appears to be gaining momentum as these words are being written.
Economic News
CAD - CAD Losing Steam as US Recovery Outlook Weakened
The Canadian dollar was seen in decline last week as traders began to view the lackluster performance of the US economy these past several weeks as a sign that regional economic growth will be limited. The USD/CAD ...
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Euro slips on EU bank jitters, payrolls awaited
LONDON, July, 8 - The euro slipped to a session-low versus the dollar on Friday, dogged by concerns that European banks were struggling as the euro debt crisis festers, while investors braced for the possibility of strong U.S. employment data later in the day.
Some in the market said a European Union draft report outlining measures to deal with weak banks pushed the euro to the day's low around $1.4310.
Stop-loss orders triggered around $1.4330 added to the euro's selling momentum, but traders cited bids around $1.4300 and below, which stemmed a further move lower.
Few investors were keen to take aggressive positions in the euro ahead of U.S. non-farm payrolls at 1230 GMT, which are expected to show a strong reading following a big boost in private jobs on Thursday.
"The market is ...
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Euro gains, buoyed by ECB Trichet's Portugal comments
(Reuters) - The euro rose for the first time in three sessions against the dollar on Thursday after European Central Bank President Jean-Claude Trichet made comments about Portugal's debt that allayed concerns that the crisis could spread.
Trichet, at a news conference held after the central bank raised its benchmark interest rate by 25 basis points to 1.50 percent as expected, said the ECB had decided to suspend the application of the minimum credit rating threshold in Portuguese collateral.
Trichet did not use the term "strong vigilance" when speaking about monetary policy, wording historically used by the central bank to communicate another rate hike can be expected.
The euro last traded at $1.4326, up 0.1 percent on the day and far above the session low of $1.4219 hit immediately ...
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