Forex News
Aug 03 2007, 15:25 - 0 Comments
While stock markets were on the up in the United States on Thursday, the embattled dollar continued to struggle through Friday.
The euro broke through the 1.3700 usd mark again as news from the United States that job growth there grew by just 92,000 in July, significantly lower than expected, shook the dollar.
Aug 03 2007, 15:23 - 0 Comments
Oil prices slipped back towards the 75 usd per barrel mark in New York on Friday after reaching record highs midweek.
News from the United States that job growth there grew by just 92,000 in July, significantly lower than expected, prompted fears about the health of the economy there.
The price of a barrel of crude in New York dropped a significant 1.07 usd to 75.77, while in London the price of a barrel dipped 98 cents to 74.78.
If the drop in oil prices continues next week it will ease growing pressure on OPEC to increase production levels when it meets in Vienna on September 11.
This week, head of the International Energy Agency Claude Mandil reiterated calls for a hike in production.
He said that oil price levels will depend on the “reaction of producer companies” in coming weeks and warned of a high possibility of limited stocks.
However, there are indications that such action might not be needed on the part of OPEC.
Aug 02 2007, 15:28 - 0 Comments
The US dollar held fast against the euro on Thursday despite rising expectations that the European Central Bank will raise interest rates by quarter of a percent next month.
The ECB held its key refi interest rate at 4 percent but governor Claude Trichet hinted strongly at an interest rate hike in September.
The news caused a brief bounce against the dollar but any significant gains were written off as the day progressed.
However, this could be a brief respite for the dollar as a rate rise next month would almost certainly weaken it against the euro.
By mid afternoon in London the euro was worth 1.3667 usd compared to 1.3659 late on Wednesday.
The euro was also up against the yen at 162.80 compared to 161.90 a day earlier.
The US dollar weakened against the yen Thursday, down to 118.15 to 118.53.
The British pound, however, strengthened against the dollar despite the Bank of England’s decision to leave interest rates unchanged at 5.75 percent.
Aug 02 2007, 15:28 - 0 Comments
Oil prices fell back from Wednesday’s record breaking highs on Thurdays as news of increased US refinery utilisation helped keep the price of crude in check.
Despite indications from the United States on Wednesday that refinery utilisation rates there are on the up, the price of a barrel of crude in New York rocketed to record highs of 78.77 usd.
Aug 02 2007, 15:27 - 0 Comments
The European Central Bank opted to leave its main refi interest rate unchanged at 4 percent on Thursday.
However, European interest rates are expected to continue higher next month, by at least a quarter of a percent, having risen from 2 percent in December 2005 and by 1 percent in the last year.
However, if September’s interest rate goes ahead as expected, they are expected to remain unchanged thereafter, at least in the short term.
Governor of the European Central Bank, Jean Claude Trichet today raises speculation that rates will rise next month as he warned that “strong vigilance” is needed to keep inflation in the euro-zone under control.
He said it was the ECB’s aim that “risks to price stability over the medium term do not materialize”.
Although inflation rates within the euro-zone are still within the ECB’s targets, and Trichet refused to comment on the future movement of interest rates, a hike next month is still widely expected.
Trichet this week echoed messages coming from the ECB recently that the European economy is in a very healthy position and is likely to continue growing.
Last week he told German daily Die Zeit that he is not overly concerned by the crisis in the sub-prime mortgage market in the United States and the strength of the Euro against the US dollar.
He added that he is pleased with current state of credit markets in the euro-zone, saying the last few weeks have seen a correction of the under appreciation of risks in certain areas of the global finance system.
Meanwhile, the Bank of England followed suit on Thursday as it kept its key interest rate unchanged at 5.75 percent.
Aug 02 2007, 15:26 - 0 Comments
The Dow Jones ended a seesaw day on the up on Wednesday as the United States’ housing crisis and home loan fears continued to influence the market.
The Dow rose 150.38, or 1.14 percent, to 13,362.37 after an eventful day on Wall Street.
The turmoil came as the US government released data that pointed towards a potential shortfall in supplies of oil, and the price of a barrel of crude in New York rocketed to a record high of 78.77 usd.
Other indices were also on the up as the Nasdaq composite index rose 7.60 to 2,553.87 and the Standard & Poor’s 500 index was up 10.54 points to 1,465.81.
Although news from the National Association or Realtors that pending sales of existing homes rose 5 percent in June from a month earlier figures lifted the market, fears over subprime lending and high oil prices will likely offset much of the benefit.
It is thought unlikely that the Dow will regain last month’s record highs, when the market went over 14,000 for the first time, any time soon.
Wednesday’s volatile market reflected the trend of the last week as the Dow continues to alternate between dramatic gains and losses.
Aug 01 2007, 15:33 - 0 Comments
After weeks of threatening to break records, oil prices in New York hit new highs on Wednesday.
As the US government released data that pointed towards a potential shortfall in supply, the price of a barrel of crude in New York rocketed to 78.77 usd.
There had been hope that refinery restarts and the end of the summer driving season in the United States would drag prices lower.
Aug 01 2007, 15:32 - 0 Comments
New French President Nicolas Sarkozy’s election promises began to materialize on Wednesday as the French parliament gave the nod to new fiscal measures.
Sarkozy’s election campaign promised a number of measures to boost the French economy, which has indeed been showing positive signs in recent weeks.
Many of the measures passed Wednesday will benefit the taxpayer and the homeowner.
