Fed Hurts Dollar

Forex Morning Briefing : Prospects of more easing hurts yen What’s new: Forex: Yen falls on prospects of more stimulus by BOJ; Aussie recovers from 3-month low Global Markets: Global shares extend declines as Europe’s debt crisis seen worsening Euro zone: Bond yields rise sharply; Spain’s 10yr yields soar to highest since December 12th Euro zone: Italy scheduled to sell €11 bln bills today United States: Fed Vice-Chairman Yellen to speak today Rates in Asia and Indices: EUR/USD 1.3067 - 1.3116 0.24 % USD/CHF 0.9162 - 0.9195 0.22 % GBP/USD 1.5852 - 1.591 0.28 % USD/JPY 80.62 - 80.95 -0.30 % EUR/CHF 1.2012 - 1.2018 -0.01 % EUR/JPY 105.45 - 106.15 -0.54 % Dow Jones 12710.56 - 12929.59 -1.65 % Nasdaq 2688.21 - 2749.51 -1.63 % S&P 500 1357.38 - ...

(Reuters) - Since 2009, the city of Chesapeake, tucked up against the Great Dismal Swamp in southern Virginia, has cut its workforce twice. This summer, nearly three years after the recession ended, the city of 222,209 has plans for a third round of layoffs. "We're not seeing the recovery we want to see," said Budget Director Steven Jenkins, who is hoping many of the 20 people will move into other jobs. The city's revenues are still feeling the concussions from the housing market downturn, which started in 2006, even as overall growth in the United States has improved. "We are heavily reliant on the residential real estate market," said Jenkins. In a recent assessment the average property value dropped 3.7 percent, which hits property taxes, and hurts government budgets. "The ...

Dukascopy Technical Analysis EUR/USD "With concerns about global growth now weighing on sentiment, the single currency seems to behave like a proper funding currency should do—it rallies against risk-correlated currencies. We suspect that this should remain the case in the near term" - Citigroup (based on Reuters) The pair is attempting to advance further and it is likely to test the 7-month high at 1.3457. EUR/JPY "Over the short term, there appears to be little to jolt markets out of their stupor and if anything, is likely to continue to drift higher according to our short-term quantitative models" - Credit Agricole (based on MarketWatch) A fierce resistance lies ahead of EUR/JPY at 111.57 (intervention high). If EUR/USD fails to advance higher, it will commence a slide back towards ...

(Reuters) - U.S. consumer prices rose the most in 10 months in February as the cost of gasoline spiked, but there was little sign that underlying inflation pressures were building up. Surging gasoline prices put a small dent in consumer confidence early this month, other data showed on Friday. Still, Americans do not believe the sharp run-up in prices will last. The Labor Department said the Consumer Price Index rose 0.4 percent in February after advancing 0.2 percent in January. Gasoline accounted for more than 80 percent of the rise. Stripping out volatile food and energy costs, the so-called core CPI edged up just 0.1 percent. "Consumer purchasing power, at least for the next few months, is going to remain pressured by rising gasoline prices," said Sam Bullard, a senior economist at ...

(Reuters) - Gold edged up on Thursday, after shedding nearly 2 percent the day before and was set for its worst weekly performance in three months, as growing investor optimism on the outlook for the U.S. economy boosted the dollar and riskier assets like stocks. Investors have stuck with gold for now, pushing holdings of the metal in the world's largest exchange-traded products (ETPs) to record highs this week, while in Asia's purchasing hot-spots, the drop in price encouraged a strong revival in demand, particularly in top consumer India. The sharp rise in Treasury yields this week has also tempered gold, because of the knock-on effect on the dollar, which tends to gain in a rising rate-environment. Ten-year Treasury yields were set for their largest weekly rise since early July 2011 ...

What’s new: Forex: Euro headed for weekly decline against majors; Aussie struggles on Chinese data Forex: Dollar close to record low versus yen Global Markets: Markets muted ahead of US jobs data Japan: Finance minister Azumi warns on ‘one-sided’ moves in USD/JPY, traders wary of possible intervention Euro zone: Spain and France attract solid demand at bond auctions China: Non-manufacturing PMI declines sharply in January, hurts riskier currencies United States: US jobs report scheduled for 14:30 CET Forex rates in Asia and Indices: EUR/USD: 1.3156 - 1.3314 USD/CHF: 0.9189 – 0.9163 GBP/USD: 1.5841 - 1.5786 USD/JPY: 76.26 – 76.14 EUR/CHF: 1.2060 – 1.2047 EUR/JPY: 100.25 – 99.93 DowJones: 12'705.41 -0.09% NASDAQ: 2'859.68 +0.40% S & P 500: 1'325.54 +0.11% Nikkei: 8’831.93 -0.51% Shanghai: ...

(Reuters) - U.S. stocks sagged on Thursday as traders cashed in on red-hot bank and technology shares, while the Federal Reserve's commitment to easy money to help the U.S. economy rebound weakened the dollar. The statement by the Fed, which announced on Wednesday it would probably keep interest rates near zero until at least late 2014 - some 18 months later than the Fed had suggested last year - intensified buying of medium- and long-term U.S. government debt. The yield on five-year U.S. notes hit 0.7538 percent, a low going back at least 50 years. The pullback in bank and tech shares, which have posted double-digit percentage gains so far in January, emerged after a disappointing report on new home sales. Housing-related stocks were among the biggest losers. The sell-off raised ...

The argument for the Fed to begin another round of quantitative easing (QE3) is beginning to form. Economic News USD - Why the Fed will Start QE3 The release of the Fed's meeting minutes from their previous FOMC meeting on November 2nd show that “A few members indicated that they believed the economic outlook might warrant additional policy accommodation,” The meeting minutes also noted that any announcement would be more effective in a future communications initiative. Past comments from Fed Chairman Ben Bernanke have been supportive of additional monetary policy moves. On September 29th in Cleveland, Ohio, Bernanke said, “If inflation itself falls too low or inflation expectations fall too low, that would be something we'd have to respond to because we don't want deflation.” Given ...

Trading day on Wall last night locked rising after a dramatic day and volatile day. Last night investors were focused in the crisis in Italy, where Parliament convening took place and vote on new budget through narrow majority. However, more dramatic news announced - Italian president that Prime Minister Berlusconi is to resign after parliamentary approval of the 'austerity program' in the country. Notice of resignation was due to vote on the budget where the government of Berlusconi lost the absolute majority. Market seems slightly encouraged by the message and now waiting for new developments in the form of leveraging trillion euro to the alleged rescue fund. October's inflation figures were published this morning in China as it is true that the CPI rose by 0.1% last month. Yet, the ...