Forex News: August 2007

Wednesday, August 29, 2007

Copper Prices Rebound To Close Up For The Session, Wednesday, August 29, 2007 4:20:26 PM

Copper was back up in U.S. trading on Wednesday in U.S. trading. Copper for September delivery closed up $0.0385 at $3.35 a pound, more than offsetting a significant decline Tuesday, its first drop in eight sessions. Copper was pushed on Wednesday by a strong day for U.S. stocks, easing general concerns about the economy.

Prices fell early amid the release of data revealing stockpiles monitored by the London Metal Exchange moved to 138,650 metric tons. This is an increase of 3,025 tons, or 2.2%, the highest since late May. Copper began to rise sharply about 11:30 a.m. to erase those losses as well as the drop from Tuesday`s session. The U.S. stock market enjoyed a strong day, pushed by energy and technology stocks.

Meanwhile, after closing lower in the two previous sessions, the price of gold regained some ground during trading on Wednesday. Gold for December delivery closed up $1.90 at $675.40 an ounce, although it was well off its best level of the day. The price of gold showed a notable upward move in early trading, reaching a high of $678.20 an ounce after falling $3 an ounce over the past two days. The rebound was partly due to bargain hunting along with some strength in the stock markets.

The U.S. dollar continued to see weakness throughout the morning against both the euro and sterling. Gold usually moves in the opposite direction as the dollar. The greenback`s weakness also helped the price of silver, which gained 8 cents to move at $11.845. Overall, silver has been range-bound for 12 days.

The economic calendar was light in the U.S. on Wednesday. Traders are looking ahead to several key reports on Thursday. Included on the schedule will be GDP price index data for the second quarter as well as weekly jobless claims figures. Friday will bring the release of PCE deflator data.

Crude oil prices surged after the Energy Information Administration released its report on U.S. oil inventories in the week ended August 24 on Wednesday, showing that crude oil and gasoline inventories fell by much more than analysts had expected. Crude for October delivery closed up $1.78 at $73.51 a barrel, more than offsetting the modest price decrease that was seen in the previous session. The rally helped oil erase the losses it saw on Tuesday when it snapped a streak of four straight winning sessions.

The EIA`s weekly inventory report showed that crude oil inventories fell by 3.49 million barrels following an unexpected increase of 1.89 million barrels in the previous week. Analysts had been expecting a much more modest decline of about 1 million barrels. Gasoline inventories also showed a notable decrease, falling by 3.67 million barrels after falling by 5.71 million barrels in the week ended August 17. The decrease far exceeded analyst estimates of a drop of less than 1 million barrels.

Meanwhile, the price of natural gas ended the session in negative territory after posting a notable gain in the previous session. Natural gas for September delivery closed down $0.163 at $5.43 per million BTUs.

Among agriculture commodities, corn, soybeans and rough rice moved lower. While wheat and ethanol moved higher. On the New York Board of Trade, cocoa, cotton and orange juice gained for the day, while sugar and coffee prices fell.

Pound Rises Against Major Counterparts, Wednesday, August 29, 2007 4:07:23 PM

The British pound saw strength against the other majors on Wednesday in New York. The pound reached its highest level in a few days against the dollar, euro and yen and was rising in the afternoon looking to extend those highs. There was no major economic news planned for the UK on Wednesday.

The sterling rose towards resistance marking a 19-day high on Wednesday in New York. The pound rose starting on Tuesday night to pull away from a five-day low and got as high as 2.0179 in the late morning. It bounced off of that but the rallied again to test the resistance again in the later afternoon. If the sterling can get past the 2.0188 mark it would reach its highest level since August 10.

Meanwhile, the sterling touched a six-day high of 0.6768 at 5:45 a.m. ET. It cooled slightly for the rest of the morning before leveling off in the afternoon. The sterling also posted sharp gains against the yen in the late afternoon and reached a three-day high of 234.27. It began to rally on Tuesday night, moving away from a weekly low.

There was no major economic news out of the UK on Wednesday, but several reports are due Thursday. Scheduled for release will be the M4 money supply for July, mortgage approvals for July, CBI industrial product prices for July and Nationwide House price data for August. On Friday, the GfK consumer confidence survey results will be revealed.

Yen investors are looking ahead to the release of Japanese retail sales figures late Wednesday evening. Traders are also looking ahead Thursday, which will bring the release of retail PMI data in the Euro zone and GDP data in the U.S.

Australian Currency Mostly Uncertain On Wednesday [AUD/USD], Wednesday, August 29, 2007 3:30:52 PM

The Australian currency was mostly choppy against its counterpart in trading on Wednesday afternoon in New York. However, the aussie showed strength against the yen. The Australian dollar as some home sale data was released from the area.

The Australian currency was choppy against its American counterpart on Wednesday. By the afternoon, the aussie had bounced between a high of 0.8205 and a low of 0.8124 against the buck. The pair traded ahead of the US` announcement tomorrow regarding CPI data as well as jobless claims.

In trading against the pound on Wednesday, the Australian currency saw little direction into the afternoon action. The aussie kept in a range between a high of 2.4523 and a low of 2.4771 as trading progressed. The pair traded as the U.K. reported house prices in England and Wales recorded a monthly growth of 0.1% in July. This was the lowest growth rate since June 2006. Average house prices amounted to 181,460 pounds in July.

The Australian currency moved little against its European counterpart on Wednesday. By the mid afternoon, the Australian dollar had bounced between a high of 1.6602 and a low of 1.6829. On the whole, the Australian currency remains within the range of the past month against its European counterpart.

The Australian currency rose steadily against its Japanese counterpart in trading on Wednesday afternoon. The aussie climbed to a mark of 94.64 as action moved past 3:30 PM EST. Traders moved ahead of Japanese data due out later in the day regarding Retail Trade and Sales for July.

New home sales in Australia showed a 1.5% growth in July, after recording a fall of 0.8% in June. The sale of new homes and units totaled 8,441 in July. The report said sales for volatile multi-units sector increased 13.5%, while sales of detached houses dropped 0.1%.

Clifford Bennett, chief economist at St. Helens Investors, told Bloomberg that, “The yen carry trade is over.” He stated, “There might be occasional bounces but the Australian and New Zealand dollars will continue to fall against the yen.”

Soybean Prices Rise Amid Weather Concern, Wednesday, August 29, 2007 2:51:38 PM

Soybean prices moved higher in U.S. trading on Wednesday as traders expressed concern that adverse weather in the southern U.S. will hinder the crop size. Soybean prices for September delivery was at $8.505, up 3.25 cents on the session. Higher than normal temperatures and rainfall as much as 25% lower than normal throughout the southern United States has led experts to worry about the upcoming yields.

According to the U.S. Department of Agriculture`s website, rust was found in a soybean plot in Madison County, Florida, bringing the total of counties with rust issues to 74. In Texas, 25 counties have been impacted, compared to 14 in Louisiana.

Also among agriculture commodities, corn and rough rice moved lower. While wheat and ethanol moved higher. On the New York Board of Trade, cocoa, cotton and orange juice gained for the day, while sugar and coffee prices fell.

Crude oil prices surged after the Energy Information Administration released its report on U.S. oil inventories in the week ended August 24 on Wednesday, showing that crude oil and gasoline inventories fell by much more than analysts had expected. Light sweet crude for October settlement was up $1.58 to $73.31. Oil reached as high as $73.39, its highest mark in two weeks in afternoon trading. The rally helped oil erase the losses it saw on Tuesday when it snapped a streak of four straight winning sessions.

The EIA`s weekly inventory report showed that crude oil inventories fell by 3.49 million barrels following an unexpected increase of 1.89 million barrels in the previous week. Analysts had been expecting a much more modest decline of about 1 million barrels. Gasoline inventories also showed a notable decrease, falling by 3.67 million barrels after falling by 5.71 million barrels in the week ended August 17. The decrease far exceeded analyst estimates of a drop of less than 1 million barrels.

The inventory report also pushed the prices of RBOB gasoline, which added 3.96 to trade at $2.055. Gasoline for September delivery touched a 26-day high of $2.0608 earlier in the morning. Heating oil also rose, adding 7.96 cents to move at $2.0950. September-dated heating oil touched a two-week high of $2.0426 in morning activity.

After closing lower in the two previous sessions, the price of gold regained some ground during trading on Wednesday. Gold for December delivery closed up $1.90 at $675.40 an ounce, although it was well off its best level of the day. The price of gold showed a notable upward move in early trading, reaching a high of $678.20 an ounce after falling $3 an ounce over the past two days. The rebound was partly due to bargain hunting along with some strength in the stock markets. The U.S. dollar continued to see weakness throughout the morning against both the euro and sterling. Gold usually moves in the opposite direction as the dollar. The greenback`s weakness also helped the price of silver, which gained 8 cents to move at $11.845. Overall, silver has been range-bound for 12 days. Copper for September delivery closed up $0.0385 at $3.35 a pound, more than offsetting a significant decline in the previous session.

The economic calendar was light in the U.S. on Wednesday. Traders are looking ahead to several key reports on Thursday. Included on the schedule will be GDP price index data for the second quarter as well as weekly jobless claims figures. Friday will bring the release of PCE deflator data.

Yen Sees Weakness Ahead Of Release Of Retail Data [USD/JPY], Wednesday, August 29, 2007 2:24:53 PM

The yen saw weakness versus its major counterparts on Wednesday in New York with traders looking ahead to the release of Japanese retail sales figures late Wednesday evening. Analysts are predicting that retail sales fell 2.5 percent in the month of July. Meanwhile, the benchmark Nikkei 225 Stock Average closed down 274.66 points or 1.7% at 16,012.83.

The yen dropped in afternoon trading against the dollar to extend its daily low on Wednesday in New York. The Japanese currency has seen weakness throughout the day and has fallen as low as 115.60. The losses erased most of the gains the yen gathers on Tuesday when it climbed to a two-week high.

The Japanese currency also moved away from a weekly-low against the euro. The yen reached as high as 154.52 late Tuesday night but has fallen throughout most of Wednesday. The pair moved at 157.82 at 2:15 p.m. ET.

The yen also saw weakness against the British pound. The Japanese currency moved lower through the morning before bouncing back in mid-day trading. It rallied again at around 2 p.m. ET to test support.

The economic calendar was light in the regions of the four biggest currencies. Traders are looking ahead Thursday, which will bring the release of retail PMI data in the Euro zone, GDP data in the U.S. and Nationwide house price data in the UK.

Sugar Prices Move Lower, Wednesday, August 29, 2007 2:05:53 PM

Sugar prices were down on Wednesday in U.S. trading amid further speculation that the Indian government will step in to help the country`s producers of the commodity. Sugar for October delivery traded at 9.42 cents a pound, down 3 cents for the session, on the New York Board of Trade. Prices have been falling for the last three weeks.

According to the International Sugar Organization, India is expected to bypass Brazil as the world`s leading sugar producer. On Tuesday, the Indian government said it might help pay sugar-cane producers. This would allow exporters to take lower prices. A surplus of 10.8 million tons is expected for the sugar market is reportedly expected.

Also on the NYBOT, cocoa, cotton and orange juice are up for the day. Coffee prices are down. Among agriculture products, corn prices have also moved lower, but soybeans, wheat, milk, cattle and cotton all saw a rise.

Crude oil prices surged after the Energy Information Administration released its report on U.S. oil inventories in the week ended August 24 on Wednesday, showing that crude oil and gasoline inventories fell by much more than analysts had expected. Light sweet crude for October settlement was up $1.58 to $73.31. Oil reached as high as $73.39, its highest mark in two weeks in afternoon trading. The rally helped oil erase the losses it saw on Tuesday when it snapped a streak of four straight winning sessions.

The EIA`s weekly inventory report showed that crude oil inventories fell by 3.49 million barrels following an unexpected increase of 1.89 million barrels in the previous week. Analysts had been expecting a much more modest decline of about 1 million barrels. Gasoline inventories also showed a notable decrease, falling by 3.67 million barrels after falling by 5.71 million barrels in the week ended August 17. The decrease far exceeded analyst estimates of a drop of less than 1 million barrels.

Gold prices gained in early U.S. trading Wednesday, after falling in its two previous sessions. December-dated gold was at $675.40, up $1.90. The U.S. dollar continued to see weakness throughout the morning against both the euro and sterling. The greenback`s weakness also helped the price of silver, which gained 9 cents to move at $11.85. Overall, silver has been range-bound for 12 days.

The inventory report also pushed the prices of RBOB gasoline, which added 3.96 to trade at $2.055. Gasoline for September delivery touched a 26-day high of $2.0608 earlier in the morning. Heating oil also rose, adding 7.96 cents to move at $2.0950. September-dated heating oil touched a two-week high of $2.0426in morning activity.

The economic calendar was light in the U.S. on Wednesday. Traders are looking ahead to several key reports on Thursday. Included on the schedule will be GDP price index data for the second quarter as well as weekly jobless claims figures. Friday will bring the release of PCE deflator data.

New Zealand Currency Shows Strength Versus Majors [NZD/USD], Wednesday, August 29, 2007 12:55:30 PM

The New Zealand currency showed strength against its counterpart in trading on Wednesday afternoon in New York. The New Zealand dollar moved with little economical news from the area. While the currency was strong in today`s trading, it has declined 19% from last month`s 21 year high against the yen.

The New Zealand currency rose steadily against its American counterpart in trading on Wednesday afternoon. The kiwi advanced to a mark of 0.7026 in the early afternoon. The currencies remain within the range of the past month. Tomorrow, the US is set to announce CPI data as well as jobless claims.

In trading against the pound on Wednesday, the New Zealand currency saw some advancement in the afternoon action. The kiwi edged up to a mark of 2.87 by 12:30PM EST. The pair traded as the U.K. reported house prices in England and Wales recorded a monthly growth of 0.1% in July. This was the lowest growth rate since June 2006. Average house prices amounted to 181,460 pounds in July.

The New Zealand dollar showed strength versus its European counterpart in action on Wednesday afternoon. The kiwi rose steadily to a mark of 1.94 against the euro by 12:30PM EST. Generally, the New Zealand currency remains near its recent 11 month low against the euro.

Versus its Japanese counterpart, the New Zealand currency saw strength on Wednesday. By the early afternoon, the currency had advanced to a mark of 80.95 against the yen. Traders moved ahead of Japanese data due out later in the day regarding Retail Trade and Sales for July.

Clifford Bennett, chief economist at St. Helens Investors, told Bloomberg that, “The yen carry trade is over.” He stated, “There might be occasional bounces but the Australian and New Zealand dollars will continue to fall against the yen.”

Crude Oil Up After EIA Inventory Report, Wednesday, August 29, 2007 11:33:55 AM

Crude oil prices surged after the Energy Information Administration released its report on U.S. oil inventories in the week ended August 24 on Wednesday, showing that crude oil and gasoline inventories fell by much more than analysts had expected. Light sweet crude for October settlement was up 98 cents to $72.71. Oil reached as high as $72.87, its highest mark in nearly two weeks, shortly after the EIA`s report. The rally helped oil erase the losses it saw on Tuesday when it snapped a streak of four straight winning sessions.

The inventory report showed that crude oil inventories fell by 3.49 million barrels following an unexpected increase of 1.89 million barrels in the previous week. Analysts had been expecting a much more modest decline of about 1 million barrels. Gasoline inventories also showed a notable decrease, falling by 3.67 million barrels after falling by 5.71 million barrels in the week ended August 17. The decrease far exceeded analyst estimates of a drop of less than 1 million barrels.

With the decrease, gasoline inventories fell for the fourth straight week, falling to their lowest level in almost two years. The EIA, a statistical agency of the Department of Energy, also said that inventories of distillate fuel, which include diesel and heating oil, increased by 889,000 barrels following a 1.36 million barrel increase in the previous week. The increase came roughly in line with analyst estimates.

Oil finished down 24 cents on Tuesday on a choppy day of trading after moving as high as $72.25, a 12-day high, in early trading. Crude was pushed lower as the Conference Board revealed that consumer confidence for August plunged to 105, the largest drop since Hurricane Katrina in 2005. This renewed general economic concerns in the U.S., raising the prospect of reduced demand in the U.S.

The inventory report also pushed the prices of RBOB gasoline, which added 3.96 to trade at $2.055. Gasoline for September delivery touched a 26-day high of $2.0608 earlier in the morning. Heating oil also jumped up, adding 3.02 cents to move at $2.0265. September-stamped heating oil touched a two-week high of $2.0328 in morning activity.

Meanwhile, natural gas prices declined in morning trading. September-dated natural gas was at $5.53, down 4.3 cents. Prices gained on Tuesday, breaking a streak of five straight losing sessions that cut natural gas by more than $2.00.

Gold prices gained in U.S. trading Wednesday, after falling in its two previous sessions. December-dated gold was at $675.00, up $1.50 on the session. Prices were pushed higher as the U.S. dollar saw weakness in trading against the euro and dollar throughout the morning. Silver gained 10.5 cents to move at $11.87 on Tuesday morning in the U.S. The metal has gained in two of its previous three sessions as the U.S. dollar declined. Overall, silver has been range-bound for 12 days. Copper pared its losses in later morning trading. The red metal dropped 1.35 cents to trade at $3.298. Copper had reached as low as $2.2535 following a global inventory report that showed stockpiles rose by 8%.

The economic calendar is light in the U.S. on Wednesday. Traders are looking ahead to several key reports on Thursday. Included on the schedule will be GDP price index data for the second quarter as well as weekly jobless claims figures. Friday will bring the release of PCE deflator data.

High Yielding Currencies Poised For A Rebound, Wednesday, August 29, 2007 4:14:21 AM

The high yielding currencies such as the Australian and the New Zealand dollars are set for a reversal of their recent losses against the dollar and the yen.

Decreased investor confidence led to unwinding of carry trade positions, which in turn resulted in the weakening of the Aussie and the kiwi.

Reversing the upward trend that was in place for about five days from 21st August, the currencies were moving steadily downward for the past few days.

The Aussie-dollar, Aussie-yen, kiwi-dollar and kiwi-yen pairs have thus reached 1-week lows in early Asian deals on Wednesday.

Tuesday`s Conference Board data showed a decline in U.S. consumer confidence for August.

Also, the FOMC minutes of its August 7 meeting offered no clue to a time frame for a reduction in the benchmark interest rate. Therefore, investors sold riskier currencies.

The Australian and New Zealand currencies have now formed medium term lows versus their US and Japanese counterparts. With the Relative Strength Index in the oversold zone, both Aussie and kiwi are poised for a rebound.

Against the dollar and the yen, the NZ currency is likely heading toward 61.8% retracement levels from 21st August lows, while the Australian dollar is aiming its near term resistance levels around 38.2% retracement.

The recent fall pushed the aussie-dollar to a low of 0.8050 in early Asian deals on Wednesday, but it has moved up to 0.8146 lately. On the upside, 0.8205, which is a 38.2% retracement from its August 21st low, is seen as a near term level of resistance for the Australian currency. The RSI on the hourly chart is at 47.35.

Against the yen, the Aussie fell to 91.71 in Wednesday`s Asian deals, marking an 11-day low for the pair. However, the pair started ticking up lately and is now worth 93.3. If the pair strengthens further, 94.64 can likely be the next level of resistance, which is 38.2% a retracement from August 21st low. The RSI on the hourly chart is at 47.16.

The New Zealand dollar fetched as low as 0.6868 of a US dollar in early Wednesday Asian deals, but it gained ground thereafter. The pair is now trading near 0.6969. If the kiwi strengthens further, a near term resistance around 0.7043 may be tested, which is a 61.8% retracement from its August 21st low. The RSI on the hourly chart is at 44.6.

The kiwi also gained ground recently against the Japanese currency after hitting an 8-day low of 78.24 in early Asian deals, today. Of late, the pair is worth 79.88 and is likely targeting 81.24 in the near term, which is 61.8% retracement from its August 21st low. RSI on hourly chart is at 45.75.

Dollar Reversing Gains, Wednesday, August 29, 2007 1:04:35 AM

After rallying for the past three days, the US dollar has recently reached multi-day highs against the euro and the pound, but is now at an 8-day low versus the Japanese yen. The Relative Strength Index on the hourly charts shows that the greenback has been overbought against the euro and the pound. The greenback is oversold against the yen, which suggests that the currency is ripe for a rebound.

Fundamentally, the unwinding of carry trades resulted in the strengthening of the US currency against risk-friendly currencies such as the euro and the sterling recently. The Australian and New Zealand dollars are the other majors, which declined sharply versus the US currency on declining investor confidence.

The dollar was down against the euro and the pound during early deals yesterday, while holding steady against the yen. However, the greenback gained ground in New York deals amid a slightly softer August U.S. consumer confidence data from the Conference Board.

The report showed that the consumer confidence index fell to 105.0 in August from a downwardly revised 111.9 in July. Economists had expected the index to drop to 104.5 compared to the 112.6 originally reported for the previous month.

Lynn Franco, Director of the Conference Board Consumer Research Center said, `A softening in business conditions and labor market conditions has curbed consumers` confidence this month.” Franco also said the recent financial market volatility and continued sub-prime woes may also have played a role in the drop in consumer confidence.

Later, the Federal Open Market Committee released the minutes of its August 7 meeting, which reiterated the committee`s concern over upside risks on inflation. The minutes did not offer any clue on the time frame for a widely anticipated interest rate reduction.

A less optimistic market continued the unwinding of carry trade positions all through late trading on Tuesday, which has lifted the dollar to its near-term resistance levels against the European common currency and the British pound. On the other hand, the buck is now at a near-term support level versus its Japanese counterpart.

Against the euro, the dollar rallied on Tuesday, and is up from its previous day`s close of 1.3645. The pair hit a high of 1.3561 by about 9:20 pm ET. Of late, the pair has dropped a few pips and is now trading near the 1.3592 level. On the upside, the 1.3616 level is seen as a near-term target for the dollar. The RSI on the hourly chart is at the 40.3 level.

The greenback also strengthened against the sterling on Tuesday. As of 9:20 pm ET, the pair was worth 1.9960, up from its Monday`s close of 2.0119. Of late, the greenback has shed a few pips and is being quoted around the 2.0021 level. If the pair weakens further, 2.0050 is likely be a near term level of support for the buck. The RSI on the hourly chart is at 43.98.

On the other hand, against the Japanese yen, the greenback declined on Tuesday and has hit a new multi-day low of 113.85 in early Asian deals on Wednesday. Thereafter, the pair moved sideways, but has started to drift higher lately. As of now, the pair is worth 114.38 with a near-term upside target likely around 115.35. The RSI on the dollar-yen hourly chart has moved up from 19.5 level and is now near 40.0.

Thursday, August 16, 2007

Death Toll Rises To 115 In Peruvian Quake, Hundreds Injured, Thursday, August 16, 2007 5:01:45 AM

The death toll in the earthquake that hit Peru at 1840 or 2340 GMT Wednesday has reached 115 with more than a thousand injured, the country`s health minister, Carlos Vallejos said early Thursday.

The 7.9 magnitude quake with epicenter 160 km from the capital Lima hit near the town of Chincha Alta, and was located 40 km below the earth`s surface, the US Geological Survey reported. At least three aftershocks also struck off the central coast of Peru, sending workers running out of shaking buildings in the capital, Lima.

The force of the quake shook buildings in the capital in two bursts of about 20 seconds each, followed by several aftershocks ranging from magnitudes of 5.4 to 5.9 that caused some power outages, witnesses said.

President Alan Garcia ordered all police personnel to the streets of Lima to keep order and said he was sending the country`s health minister and two other Cabinet members to Ica.

Speaking on radio stations Radioprogramas and CPN, Health Minister Carlos Vallejos said he was trying to reach the city of Ica, the hardest hit by the quake.

Earlier, Deputy Health Minister Jose Calderon called the situation `dramatic` in Ica, a city of 650,000 people located 165 miles southeast of the capital. The city was also without electricity as firefighters and other rescue workers dug through the rubble in the dark for survivors.

Calderon called upon Peruvians to donate blood for the injured and said a convoy of doctors and nurses were headed for Ica. News reports said dozens of people were thronging hospitals in the city seeking treatment even though the hospitals had suffered cracks and other structural damage.

Meanwhile, state doctors called off a national strike that began on Wednesday to handle the emergency arising out of the earthquake.

Peru`s America TV reported 48 people were killed and 350 injured, citing officials. It showed footage of traffic lights in the capital, Lima, swaying with the quake.

Cable news station Canal N reported that the bell tower of an 18th-century church collapsed in the city of Ica south of Lima, killing 17 people and injuring 70.

Firefighters quoted in radio reports said that many streetlights and windows were shattered in Lima but did not specify if there were any injuries. Hundreds of workers were evacuated from office buildings in Lima after the quake struck and remained outside, fearing aftershocks.

The coastal town of Pisco, about 257 kilometers south of Lima, also appeared to be badly hit and there was no electricity in the town, Gen. Luis Palomino, head of Peru`s national civil defense institute said.

Fernando Calderon, an American visiting Peru said it was chaos everywhere. Everybody started crying. Everybody started running toward any empty space. Everybody was afraid the buildings were going to collapse.

Cristyane Marusiak, a 31-year-old resident said people here hugging and crying in fear on the streets.

The Pacific Tsunami Warning Center in Hawaii had issued a tsunami alert for Peru, Chile, Ecuador and Colombia late on Wednesday after the 7.9-strong quake struck Peru. The center canceled all the alerts after about two hours, but it said the quake had caused an estimated 10-inch tsunami near the epicenter. `It wasn`t big enough to be destructive,` said Stuart Weinstein, the center`s assistant director.

Yen Surges To New Highs, Thursday, August 16, 2007 4:16:28 AM

The Japanese currency extended its Wednesday intra-day gains in late New York trading, but largely remained sideways through early Asian deals on Thursday.

However, the yen-pairs gained ground around 9:30 pm ET Wednesday. The Japanese currency resumed its upward momentum as traders seemed keen on unwinding carry trade positions again. The spike made the currency hit a 5-month high versus the greenback and 4Ѕ-month highs versus the European majors.

The pairs are now moving sideways as investors await the British retail sales and euro-zone inflation data for July. Deals later in New York session are likely to be influenced by the US July housing starts numbers.

Technically, the major currencies are now testing key support levels slightly above their early March lows versus the Japanese currency. Also, RSI study on daily charts shows that the yen is in overbought positions against all the major currencies.

And, if the yen bounces back from the overbought zone, its 50-day simple moving average of 120.0 could act as a key support level against the dollar. However, if the Japanese currency strengthens further, it could face resistance around the 115.14 level.

The Japanese yen moved up against its US counterpart in the Asian session on Thursday. The pair remained sideways in early Tokyo deals but gained ground towards the end of the session. Up from an Asian low of 116.76, the pair moved to 115.69 by about 11:40 pm ET. This set a 5-month high for the yen, which is a little below the early March high of 115.15. The pair has been now moving sideways around 116.0

Extending the recent gains, the Japanese Yen trended higher against its European counterpart in the Asian deals on Thursday. After moving a little up from yesterday`s intra-day high of 156.68, the pair remained sideways, but it strengthened again and hit 154.98 by about 11:40 pm ET. This set a new multi-month high for the pair. Of late, the yen has dropped a few pips and the pair is now trading near 156.2.

After adding to Wednesday`s intra-day gains through late New York deals the yen remained range-bound against its British counterpart in Thursday`s early-Asian deals. However, the pair gained ground towards the end of the session and it hit a 4 Ѕ -month high of 229.28 by about 11.40 pm ET. Since then, the pair moved sideways and is now trading near 230.2.

Extending the recent gains, the Japanese yen traded higher versus the Swiss currency in the Asian deals on Thursday. The pair was sideways in the early Tokyo deals, but it moved to a new multi-month high of 94.81 by about 11:40 pm ET. This compares to yesterday`s intra-day high of 95.61.Of late, the yen has shed a few pips and the pair is now trading around 95.3.

Wednesday, August 15, 2007

Pound Extends Losses On Tame U.K. Inflation Data, Wednesday, August 15, 2007 1:19:04 AM

After seeing some strength for most of June and through the third week of July, The British pound is on a retreat against most majors. The across the board weakness has pushed the sterling down to multi-week lows against the dollar and the yen. The pound has also lost ground against the euro and the franc.

A report that showed that the annual rate of consumer price inflation dropped below the central bank`s target level exerted downward pressure on the pound.

The consumer price index rose 1.9% on a monthly basis in July, while analysts had expected a 2.3% increase. Annually, the CPI inflation stood at 1.7% versus market expectation of 2.0%. It was for the first time since March 2006 that the inflation fell below the BoE target of 2%.

Slower inflation reduced the possibility of further monetary policy tightening, despite the central bank signaling an interest rate increase in its quarterly inflation report.

Unwinding in carry trades is also considered as a reason for the pound`s weakness. Following the recent downtrend, the upward bound channel, the pound has been forming against the dollar since April 2006, was violated to the downside. If the downward momentum is sustained, the currency pair could find support around the 1.9800 level.

Among the key economic reports the markets look forward to are the results of the Royal Institute of Chartered Surveyors house prices survey and the British Jobless Claims data for July. Additionally, traders are also likely to focus on the minutes of Bank of England`s August rate setting meeting.

The British currency fell heavily versus the US dollar on Tuesday amid July inflation data for the U.K. The pair hit a 1 Ѕ month low 0f 1.9962 yesterday and the losses have been extended in early Asian deals on Wednesday. As of now, the pair is trading near 1.991 with 1.9800 seen as a key support level for the sterling.

Extending the losses incurred on Tuesday, the pound trended lower against its Japanese counterpart in the early Asian deals on Wednesday. The pair has refreshed its 4-month low hit yesterday and is now trading near 233.17. If the sterling weakens further, 230.0 can likely be the next target level for the pair.

Extending Tuesday`s New York evening weakness, the sterling remained lower against its British counterpart in the early Asian deals on Wednesday. Loosing ground at about 3:30 pm ET Tuesday, the pair has lately hit 0.6792. Downside, the pair is likely targeting 0.682.

The British pound trended down against its Swiss counterpart in Tuesday`s late New York trading and early Asian deals on Wednesday. Compared to Tuesday`s intra-day low of 2.4138, the pair has lately touched as low as 2.4120. The market now turns toward the Swiss adjusted retail sales data for the month of July, which has been slated for release at 3.15 am ET.

India Celebrates 60 Years Of Independence, Wednesday, August 15, 2007 12:14:45 AM

India is celebrating on Wednesday, it`s 60th anniversary of independence from British colonial rule. The independence of India declared on August 15 1947, divided people of the sub-continent into two separate states, India and Pakistan.

President Pratibha Patil, the first woman to be elected president of the republic, in an address to the nation on Tuesday called for `inclusive economic growth` that would benefit all sections of India`s billion-plus population.

India`s Prime Minister Manmohan Singh will carry on that tradition to address the nation from the ramparts of the 17th century historic Red Fort, the massive sandstone structure built by the Mughal emperors who ruled much of modern-day India before the British arrived.

Six decades earlier, on the midnight of Aug 14, 1947, the country`s first Prime Minister Jawaharlal Nehru made a soul-stirring speech when he spoke about the rare moment when `soul of a nation, long suppressed, finds utterance`.

The event also marked one of the most violent communal upheavals of the 20th century in the sub-continent. More than a million people were killed in communal violence that followed the partition. Some 10 million people also moved across borders in one of history`s largest mass migrations as the princely states under the British rule were split into Muslim Pakistan, which celebrated its independence on Tuesday, and Hindu-majority India.

Six decades later, a resurgent and confident India is set to observe a significant milestone in its `tryst with destiny, with the country finally asserting its rightful place as a major global player,` a democratically vibrant secular fabric, a robust economy that is attracting the global attention and a rising power set to dominate world politics in the coming decades.

India is racing to become an economic powerhouse and lightning growth has transformed the country and fueled a consumer boom. Economic freedom has improved dramatically since the reforms of 1991. Some controls continue, but a large portion of the task of restoring economic freedom is complete.

But behind the euphoria of India`s magnificent economic growth is stark realization that a significant portion of the country`s one billion population is not benefiting from that growth. Indian children are more likely to be malnourished than African ones, and the country is home to about a third of the people across the world who lives on less than $1 a day.

The people who have really benefited from India`s economic growth are the rich and the upper middle classes. The big cities and urban areas are witnessing the impact of this economic growth. However, a visit to the rural areas where India`s vast majority of population lives brings out the stark reality. Things have not changed much for them since independence. Basic necessities like healthcare, shelter, electricity, clean drinking water, educational opportunities are lacking.

As India has grown over 60 years, so have security fears and terror threats. As secessionists and Islamic militants continue their terror attacks; the celebrations Wednesday will see unprecedented security deployment across the country.

Relations between India and Pakistan have improved since the start of a peace process in 2004, although mutual distrust still lingers across the subcontinent.

US President George Bush on Tuesday evening called on PM Manmohan Singh to convey the greetings of the government and people of the United States on the 60th Anniversary of India`s Independence.

Queen Elizabeth II and Prime Minister Gordon Brown congratulated India on the 60th anniversary of its independence from Britain.

In a statement released by the foreign ministry, Britain`s monarch told Indian President that she had `much pleasure in sending you and the people of the Republic of India. My very best wishes on the occasion of your 60th anniversary of independence`.

Brown, meanwhile, told his counterpart Manmohan Singh: `I celebrate the strength of the UK-India relationship. Our history, values and hopes are, and will remain, permanently intertwined.`

Monday, August 13, 2007

Yen Climbs In Trading With Major Counterparts, Monday, August 13, 2007 5:28:22 PM

The yen moved higher against the other majors on Monday in New York. The yen advanced amid choppy morning trading and then leveled off in the afternoon. Traders looked ahead to Japan tertiary industry index data, expected later tonight.

The yen was little-changed against the dollar on Monday morning in New York. The yen rose as high as 117.73 at 6 a.m. ET, but then fell back later in the morning and got as low as 118.55 at 11:30 a.m. ET. It moved back higher in the afternoon and the pair reached 118.25 at 5:15 p.m. ET. Traders mulled data showing U.S. retail sales increased modestly in July. Greenback traders looked ahead to a slew of news coming on Tuesday, including trade balance data and producer price index data.

The yen advanced against the euro on Monday in New York amid choppy trading. The Japanese currency climbed as high as 160.61 at 6:15 a.m. ET. It edged back lower for the next three hours to give back most of its gains before rallying again. The pair traded was level in the afternoon and moved at 160.92 at 5:20 p.m. ET. Traders looked ahead to German GDP data and French CPI data, expected Tuesday.

The yen advanced against the sterling on Monday in New York. The currency rallied beginning at around 2:30 a.m. ET and got as high as 236.51 at 6:15 a.m. It fell back for the next few hours before leveling off. The pair traded at 239.91 at 5:20 p.m. ET. Traders looked ahead to Japan tertiary industry index data, expected later tonight.

Sterling Bounces Back After Early Drops Against Majors, Monday, August 13, 2007 5:09:45 PM

The British pound experienced some early-morning weakness against the other majors on Monday in New York, but bounced back later in the day. The sterling reached a six-week low against the dollar and also fell against the euro and yen. It was able to rally to make up significant ground in the later morning and into the afternoon. Trading took place as investors considered data showing the UK factory-gate inflation as well as input price growth slowed in the month of July.

The sterling moved to a six-week low against the dollar Monday in New York. The pound fell in the early morning, reaching as low as 2.0085 at 5:45 a.m. ET. It edged back higher for the next several hours but then slipped again in the late morning. The currencies were flat in the afternoon and traded at 2.0125 at 5 p.m. ET. Investors considered data showing the UK factory-gate inflation as well as input price growth slowed in the month of July.

The sterling bounced back against the euro on Monday in New York and was up for the day. The pound fell to a five-day low of 0.6794 at 6 a.m. ET, but then rebounded from there. It moved higher or the rest of the morning and into the afternoon, reaching 0.6757 at around 3:45 p.m. ET. The pair moved at 0.6762 at 5:05 p.m. ET. The sterling was down against the yen on Monday in New York. The British currency dropped beginning at around 2:30 a.m. ET and got as low as 236.51 at 6:15 a.m. It edged back higher for the next several hours to recoup about half of its losses. Trading was sideways in the afternoon and the pair traded at 237.99 at 5:05 p.m. ET.

International Trade Balance, Producer Price Index - Economic Preview, Monday, August 13, 2007 4:58:18 PM

Monday the stock market was given an early boost by the release of retail sales data that edged above expectations. However, the boost was erased by close, as the Dow closed down 3 points. Data on business inventories for June was also released; however it did little to move the markets. The data, which measures the dollar amount of inventories held by wholesalers, manufacturers, and retailers, showed an increase of 0.4 percent. This matched analysts` expectations.

On Tuesday, two major reports will present investors with significant amounts of data. At 8:30 am ET information on international trade balance, which measures difference between imports and exports of goods and services, will be released. Trade balance can be especially important to currency traders, as the information can affect the value of the dollar in the foreign exchange market. Analysts expect the U.S. trade deficit for June to widen to $61.0 billion from May`s deficit of $60.0 billion.

Also scheduled for release at 8:30 am ET is the producer price index, a measure of the average price level for capital and consumer goods received by producers. It is considered an indicator of both consumer price inflation and profits. If the prices paid to manufactures increase, businesses are forced to make some tough decisions regarding prices. For July, analysts` expect to see a 0.1 percent increase. Prices decreased in June by 0.2 percent.

Dollar Moves Higher Against Major Counterparts, Monday, August 13, 2007 3:48:27 PM

The greenback saw strength against the majors on Monday in New York. The dollar was higher against the sterling and euro and was little-moved against the yen. Greenback traders looked ahead to a slew of news coming on Tuesday, including trade balance data and producer price index data.

The greenback remained up against the euro on Monday in New York after reaching a five-week high earlier in the day. The dollar gained in early hours and then added further gains at around 9:30 a.m. ET, reaching as high as 1.3613 at 11 a.m. ET. It slipped slightly in late-morning trading, but then gained again in the later afternoon. The pair traded at 1.3612 at 3:35 p.m. ET. Traders looked ahead to German GDP data and French CPI data, expected Tuesday.

The greenback moved to a six-week high against the sterling in Monday morning trading in New York. The dollar advanced in the early morning, reaching as high as 2.0085 at 5:45 a.m. ET. It edged back lower for the next several hours before stabilizing for the afternoon. The currencies moved at 2.0136 at 3:40 p.m. ET. Consumer price index data is expected Tuesday from the UK.

The dollar was little-moved against the yen on Monday morning in New York. The greenback fell as low as 117.73 at 6 a.m. ET, but then edged up to 118.55 later in the morning. It slipped slightly in the afternoon and moved at 118.29 at 3:45 p.m. ET. Traders looked ahead to Japan tertiary industry index data, expected later tonight.

Thursday, August 09, 2007

Import Export Prices, U.S. Treasury Budget - Economic Preview, Thursday, August 09, 2007 5:15:09 PM

Thursday was yet another triple-digit day for the market, with the Dow closing down 387 points as the credit squeeze propelled investors to shed equities in search of safer havens for their money. This morning data on jobless claims was released, showing they edged higher by 7,000 for the week of August 4th to 316,000. Analysts had expected an increase of 3,000. However, the news was overshadowed by the credit squeeze, and financial markets showed no reaction to the report.

At 8:30 am ET import and export prices will be made public. Changes in import and export prices are one way to gauge inflation here and abroad. Investors may also get information on how the weak U.S. dollar is affecting both imports and exports. Import prices increased 1.0 percent in June, a pace they expect to match in July.

Shortly after import and export prices, the RBC CASH (Consumer Attitudes and Spending by Household) Index will be released. The index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal financial situations, savings, and confidence to make large investments.

At 2:00 pm ET the U.S. Treasury will unveil its budget for July. The budget has a direct relationship with Treasury securities. The higher the deficit, the more Treasury notes and bonds the government must sell to finance its operation, and vice-versa. The report also gives insight the state of the U.S. economy by way of the government`s tax receipts. In June, the U.S. Treasury monthly budget recorded a $27.5 billion surplus. Analysts expect a moderate deficit of $34 billion for July.

Yen Gains Against Major Counterparts, Thursday, August 09, 2007 5:00:50 PM

The yen moved higher against the other majors on Thursday in New York as Japan recorded a foreign capital inflow of 894.2 billion yen on domestic securities for the recent week. The yen moved away from recently-visited lows against the euro, dollar and sterling.

The yen gained against the pound on Thursday in New York. The Japanese currency moved higher against the British currency for several hours, hitting as high as 239.01 at 9 a.m. ET. It fell back in the late morning, but then bounced back to its resistance level in the late afternoon.. The rise took the yen away from the two-week low it reached on Wednesday. Traders considered data showing that the UK trade deficit had narrowed to 3.6 billion pounds in June.

The yen advanced against the euro on Thursday in New York and found a nine-day high. The currency began to rise at around 2:30 a.m. ET and moved as high as 161.51 at 9 a.m. ET. It slipped back to 162.43 by 12:40 p.m. ET. Trading took place after the ECB stepped in to offer cash to borrowers after the overnight lending rates moved to their highest level in nearly six years. It fell in the late morning, but rallied again in the afternoon to get back near the high.

The yen moved higher against the dollar on Thursday in New York and moved away from a two-week low. The Japanese currency began to rally at around 2 a.m. and has continued to move higher throughout the morning. It moved to as high as 118.22 at 9 a.m. ET. It cooled back slightly in the late morning but then climbed again in the afternoon to extend its high for the day. The yen traded at 118.15 at 5 p.m. ET. Traders considered weekly jobless claims data from the U.S. that came in higher than expected.

Pound Mixed Against Major Counterparts, Thursday, August 09, 2007 4:35:50 PM

The British pound saw strength against the dollar and euro on Thursday in New York, but was weaker against the yen. Traders considered data showing that the UK trade deficit had narrowed to 3.6 billion pounds in June.

The pound continued to rise against the euro and hit a six-day high. The British currency advanced sharply at around 8:30 a.m. to rise above a range. It got as high as 0.6746 at 10:30 a.m. ET. The euro bounced back against the sterling in the afternoon and the pair traded at 0.6758 at 3:40 p.m. ET. In general, the sterling has been rising against the euro since Tuesday morning.

The sterling dropped against the U.S. dollar on Thursday in New York to give back gains from Wednesday. The pound began to fall early Thursday morning and continued to do so until about 9:15 a.m. ET when it touched a daily low of 2.0209. It bounced back to recoup about half of its daily losses, but then slipped back in the afternoon. The currencies were at 2.02134 at 3:50 p.m. ET.

The pound fell against the yen on Thursday in New York. The British currency moved lower against the Japanese currency for several hours, hitting as low as 239.01 at 9 a.m. ET. It bounced back in the late morning, but then bounced back to its support level in the late afternoon. The drop took the sterling away from the two-week high it reached on Wednesday.

Euro Moves Lower Against Other Majors, Thursday, August 09, 2007 4:00:37 PM

The euro saw weakness against its major counterparts on Thursday. The currency hit its lowest levels in around a week against the dollar, sterling and yen. In a statement released this morning French bank BNB Paribas announced it was forced to suspend three funds worth a total of $2.75 billion in USD. The bank said that the “complete evaporation of liquidity” in areas of the U.S. lending market was the culprit behind the freezing of the funds.

The euro moved lower against the dollar on Thursday morning in New York and hit a weekly low. The European currency began to move lower at 2 a.m. ET and added further losses throughout the morning. The euro got as low as 1.3656 at 9 a.m. ET. It bounced back in the later morning but edged lower again in the afternoon.

The euro was down against the sterling in late morning trading and moved to a six-day low. The European currency dropped sharply at around 8:30 a.m. to fall below a range. It got as low as 0.6746 at 10:30 a.m. ET. The euro bounced back in the afternoon and moved at 0.6758 at 3:40 p.m. ET.

The euro fell against the yen on Thursday in New York and found a nine-day low. The currency began to decline at around 2:30 a.m. ET and moved as low as 161.51 at 9 a.m. ET. It rebounded in the late morning, but slipped again in the afternoon to get back near the low.

Yen Strong Against Major Counterparts, Thursday, August 09, 2007 12:51:12 PM

The Japanese yen saw strength on Thursday in New York as Japan recorded a foreign capital inflow of 894.2 billion yen on domestic securities for the recent week. The yen moved away from recently-visited lows against the euro, dollar and sterling.

The yen gained versus the pound on Thursday in New York. The Japanese currency moved higher against the British currency for several hours, hitting as high as 239.01 at 9 a.m. ET. It slipped back to 240.45 by 12:45 p.m. The drop took the yen away from the two-week low it reached on Wednesday. Traders considered data showing that the UK trade deficit had narrowed to 3.6 billion pounds in June.

The yen advanced against the euro on Thursday in New York and found a nine-day high. The currency began to rise at around 2:30 a.m. ET and moved as high as 161.51 at 9 a.m. ET. It slipped back to 162.43 by 12:40 p.m. ET. Trading took place after the ECB stepped in to offer cash to borrowers after the overnight lending rates moved to their highest level in nearly six years.

The yen moved higher against the dollar on Thursday in New York and moved away from a two-week low. The Japanese currency began to rally at around 2 a.m. and has continued to move higher throughout the morning. It moved to as high as 118.22 at 9 a.m. ET. It cooled back to 118.73 at 12:40 p.m. ET. Traders considered weekly jobless claims data from the U.S. that came in higher than expected.

Kiwi Weak Against World Counterparts Thursday Afternoon, Thursday, August 09, 2007 12:42:28 PM

The New Zealand currency was weak against its major counterparts in trading on Thursday. The kiwi moved with little economic news from the area.

The New Zealand currency declined against its American counterpart on Thursday. The kiwi dropped to 0.7569 in the morning, and remained near that level as trading progressed into the afternoon. The currencies traded as American data showed that initial jobless claims had increased more than expected for the week ending August 4th, revising the previous estimate to 316,000 from 309,000.

In trading against the euro on Thursday, the New Zealand currency saw weakness. The currency declined sharply in the first couple hours, and held near the 1.80 mark into the afternoon action. The currencies moved as the ECB stepped in to offer cash to borrowers after the overnight lending rates shot up to their highest level in nearly six years.

The New Zealand dollar faltered against its British counterpart in trading on Thursday. The kiwi slipped in the early hours and held near a mark of 2.67 as action moved into the afternoon. The currencies traded as the U.K. announced that the trade deficit had narrowed to 3.6 billion pounds in June.

Versus its Japanese counterpart on Thursday, the New Zealand currency saw weakness into the afternoon action. The currency declined steadily to a mark of 89.84 as trading progressed. The pair moved as Japan recorded a foreign capital inflow of 894.2 billion yen on domestic securities for the week ending August 4th.

Australian Dollar Weak On Thursday In The Midday, Thursday, August 09, 2007 12:29:56 PM

The Australian currency slipped against its world counterparts in trading on Thursday midday in New York. The currency dropped as the New Zealand Herald reported the Australian Prime Minister John Howard apologized for the latest interest rate rise inflicted on his country.

In trading against its American counterpart on Thursday, the Australian currency saw weakness headed into the midday. The aussie slipped past 0.8500 in the mid morning, but gained back a small portion of its losses to move at 0.8539 near noon EST. The currencies traded as American data showed that initial jobless claims had increased more than expected for the week ending August 4th, revising the previous estimate to 316,000 from 309,000.

The Australian currency slipped against its Japanese counterpart in trading on Thursday. By the midday, the aussie had dropped steadily to a mark of 101.28. The Australian dollar and yen traded as Japan recorded a foreign capital inflow of 894.2 billion yen on domestic securities for the week ending August 4th.

Versus the euro, the aussie saw some weakness on Thursday. The currency dropped sharply in the early hours near a mark of 1.6055 and held near that level into the midday. The Australian and European currencies moved as the ECB stepped in to offer cash to borrowers after the overnight lending rates shot up to their highest level in nearly six years.

The Australian dollar slid in trading with its British counterpart on Thursday. The aussie slipped sharply in the first few hours of the day, and held near a mark of 2.3753 into the midday action. The currencies moved as the U.K. announced that the trade deficit had narrowed to 3.6 billion pounds in June.

Wednesday, August 08, 2007

Australian Dollar Sees Strength Versus Majors, Wednesday, August 08, 2007 5:51:15 PM

The aussie was generally higher against its major counterparts on Wednesday in New York. The currency was up on the dollar and euro and little-moved against the sterling. The currency moved as a report on Australian official reserve assets was posted. The assets rose A$665 million to A$80.34 billion in July. The report also noted that official reserve assets improved from A$79.68 billion due to earnings and valuation changes on reserve assets.

The Australian dollar was up against its U.S. counterpart on Wednesday in New York and reached a 12-day high. The aussie saw strength in the morning before leveling off in the afternoon. The pair traded at 0.8623 at 5:40 p.m. ET.

The aussie moved higher against the euro on Wednesday in New York. The euro moved up in the later morning and then added further gains in mid-day trading. After a mid-afternoon drop, the aussie climbed back to 1.6000 by 5:45 p.m. ET.

The Australian dollar was little changed against the sterling on Wednesday in New York after experiencing uncertain trading in the morning and afternoon. The aussie gained to as high as 2.3511 in the early morning and fell back to as low as 2.3679 at 8 a.m. ET. Trading was a little more flat in the afternoon and the pair traded at 2.3607 at 5:45 p.m. ET.

Kiwi Rises Versus Other Majors Ahead Of Employment Data, Wednesday, August 08, 2007 5:36:17 PM

The New Zealand dollar saw strength against the major currencies on Wednesday in New York. The kiwi posted strong gains against the dollar and euro and also moved up amid choppy trading against the sterling. Traders awaited the release of New Zealand unemployment data.

The kiwi advanced against the U.S. dollar on Wednesday in New York. The New Zealand dollar began to rise at 2:15 a.m. ET and continued to move up for about 12 hours. It cooled later in the afternoon and moved at 0.7676 at 5:10 p.m. ET.

The New Zealand dollar moved higher against the euro on Wednesday in New York and reached a five-day high. The kiwi began to move higher at around 2 a.m. and continued to rise into the afternoon. It slipped slightly, but bounced back and remained up in the late afternoon.

The kiwi was up against the pound amid choppy trading The New Zealand dollar gained early and then fell back at around 3 a.m. ET. It moved higher for about six hours starting at around 8 a.m. ET. It edged back lower in the later afternoon.

Yen Weak In Trading Against World Counterparts, Wednesday, August 08, 2007 3:41:58 PM

The yen was weak in trading against its American and European counterparts on Wednesday. The currency moved as data from Japan that showed core machinery orders slumped for the second quarter in a row. The orders were down 2.4% for the second quarter.

In trading against its American counterpart on Wednesday, the Japanese currency saw mixed action. The currency dropped to a mark of 119.78 by the midday, but gained back some of its losses to move at 119.37 into the mid afternoon. Forex traders mulled data from the U.S. that showed a 0.5% rise in wholesale manufacturing orders, as well as a downwardly revised home sales estimate. The National Association of Realtors expect existing home sales in the US to total 6.04 million in 2007, compared to the previous estimate of 6.38 million.

Versus its European counterpart, the Japanese yen saw weakness in action on Wednesday. By the mid morning, the yen had fallen to a mark of 165.20 against the yen. The currency held near that mark into the mid-afternoon action.

The Japanese currency fell steadily against the British sterling in trading on Wednesday morning. The yen reached a mark of 243.65 and hovered near that mark into the mid afternoon. The pound and yen moved as the Bank of England acknowledged market expectations of another hike by saying, “Short-term sterling interest rates suggest that market participants expect Bank Rate to peak at close to 6% by early 2008 and then drop back”.

Euro Advances Versus Dollar, Yen But Falters Versus Sterling, Wednesday, August 08, 2007 2:54:24 PM

The euro was strong against its American and Japanese counterparts in action on Wednesday afternoon. However, the currency slide against the pound. The European currency traded with little news from the Euro-zone.

The European currency was strong against its American counterpart in trading on Wednesday. The currency advanced sharply in the morning, rising to a mark of 1.3800. As action moved into the afternoon, the euro cooled off slightly and held near its initial rise. Traders of the pair considered data from the U.S. that showed a 0.5% rise in wholesale manufacturing orders, as well as a downwardly revised home sales estimate. The National Association of Realtors expect existing home sales in the US to total 6.04 million in 2007, compared to the previous estimate of 6.38 million.

Similarly, the European currency rose steadily against its Japanese counterpart in action on Wednesday. By the mid morning, the euro had reached a mark of 165.20 against the yen. The currency held near that mark into the mid-afternoon action. The currencies moved as traders considered data coming from Japan that showed core machinery orders slumped for the second quarter in a row. The orders were down 2.4% for the second quarter.

Meanwhile, in trading against its British counterpart on Wednesday, the euro saw weakness as the day progressed. The European currency declined steadily through the day to a mark of 0.6774 by the mid afternoon. The currencies moved as the Bank of England released its Inflation Report, hinting at the possibility of a rate hike.

Yen Falls Versus Other Major Currencies, Wednesday, August 08, 2007 12:47:56 PM

The yen dropped against the majors on Wednesday in New York after Japan`s Cabinet Office revealed that the nation`s core private sector machinery orders declined 10.4% in June compared to a 5.9% increase in the previous month. The yen dropped to its lowest levels in around two weeks against the dollar, euro and pound.

The yen fell to a two-week low against the dollar on Wednesday in New York. The dollar edged higher starting Tuesday afternoon and continuing through Wednesday morning. It added sharper gains in the later morning. The pair traded at 119.78 at 12:30 p.m. ET.

The yen was weaker against the euro on Wednesday in New York and hit a two-week low. The European currency began to fall at around 2:30 a.m. and trended lower for most of the rest of the morning. It traded at 165.28 at 12:40 p.m. ET. Japan`s Cabinet Office revealed today that Japan`s core private sector machinery orders declined 10.4% in June compared to a 5.9% increase in the previous month.

The Japanese yen fell below a support level against the sterling on Wednesday in New York and reached its lowest level in nearly two weeks. The currency began to fall at around 2:15 a.m. ET and continued to do so for about nine hours before stabilizing. The pair was at 243.78 at 12:45 p.m. ET. Japan`s Cabinet Office revealed today that Japan`s core private sector machinery orders declined 10.4% in June compared to a 5.9% increase in the previous month.

New Zealand Currency Mostly Strong On Wednesday, Wednesday, August 08, 2007 12:15:11 PM

The New Zealand currency was strong against the dollar, yen and euro in trading on Wednesday afternoon in New York. However, the kiwi saw little direction versus the sterling. The New Zealand currency moved with little economic news from the area.

The New Zealand currency rose steadily against its American counterpart in trading on Wednesday. By the midday, the kiwi had reached a mark of 0.7683 against the dollar. Traders considered the wholesale inventories data from the US, which showed a bigger than expected increase of 0.5% for June.

In trading against it European counterpart, the New Zealand dollar saw steady advancement on Wednesday. As action moved past noon, the New Zealand currency reached a mark of 1.79.

Versus the pound, the New Zealand currency saw uncertain direction in trading on Wednesday. The kiwi bounced between a high of 2.64 and a low of 2.66 as action moved into the early afternoon. The currencies held in a range traders mulled over the BoE latest Inflation Report released Wednesday, which hinted at a rate hike.

The New Zealand currency rose steadily against the yen in action on Wednesday. The kiwi advanced to a mark of 91.89 as trading moved into the early afternoon. The currencies moved as kiwi traders considered Japanese core machinery orders for the second quarter. Orders slumped 2.4%, following a 0.7% fall in the first.

Monday, August 06, 2007

Eastern European Currencies Mixed Versus Dollar, Monday, August 06, 2007 7:30:43 AM

Eastern European currencies were mixed versus the American dollar Monday morning in New York. The Hungarian forint gained ground against the greenback, while the Russian rouble fell. Meanwhile, the Polish zloty was involved in largely choppy trading with the buck. Greenback traders looked ahead to Tuesday`s Federal Reserve rate decision, which is expected to remain at 5.25%.

The Hungarian forint rose versus the dollar Monday morning in New York. After uncertain early morning trading, the Hungarian currency began to advance just before 4:00 am ET. At 7:09 am, the forint traded at a mark of 181.7800. This is compared to an intraday low of 182.6100 at 3:30 am.

The Russian rouble edged lower against the greenback Monday morning in New York. The Russian currency experienced uncertain trading before falling just after 6:00 am ET. At 7:19 am, the rouble traded at a mark of 25.4620 against its American counterpart. Traders considered data showing that Russian inflation was up 0.9% on month in July.

The Polish zloty experienced choppy trading with the dollar Monday morning in New York. At 7:22 am ET, the Polish currency traded at a mark of 2.7403 against its American counterpart. This is compared to an intraday high of 2.7338 at 6:10 am and an intraday low of 2.7462 at 2:00 am. Traders considered a statement from Polish central bank head Slawomir Skrzypek. He said that inflation in Poland probably will not exceed 3.5% during the next two years.

Yen Mixed Versus Major Counterparts Monday Morning, Monday, August 06, 2007 6:56:42 AM

The yen experienced mixed results against its major counterparts Monday morning in New York. The Japanese currency climbed versus the pound. Meanwhile, the yen ticked a little lower in trading with the dollar and euro. Japanese currency investors mulled data showing that Japan`s leading index rose above the boom-or-bust level of 50 for the first time in eight months in June.

The yen edged lower versus the greenback Monday morning in New York. After gaining some ground in the early morning, the Japanese currency started to drift lower before 3:00 am ET. At 6:45 am, the yen traded at a mark of 117.84 against its American counterpart. Greenback traders looked ahead to Tuesday`s Federal Reserve rate decision, which is expected to remain at 5.25%.

Against the euro, the yen fell Monday morning in New York. The Japanese currency retreated just after 2:00 am ET, before leveling off after 3:00 am. At 6:45 am, the yen traded at a mark of 162.75 against its European counterpart. European currency investors mulled data showing that Italian industrial production fell 0.5% in July from the previous month. Analysts had been expecting a 0.3% slide.

The yen advanced against the sterling Monday morning in New York. The Japanese currency slid during the early morning, but more than rebounded with a climb just after 3:30 am ET. By 6:45 am, the yen rose to a mark of 239.27 versus its British counterpart. This is compared to an intraday low of 240.69 at 3:30 am. Traders considered data showing that U.K. industrial production climbed 0.1% in June over month, matching analyst expectations.

Dollar Falls On Weak U.S. Growth And Risk Aversion, Monday, August 06, 2007 3:08:06 AM

The US currency has been holding steady versus most of the major currencies through the Asian deals on Monday. The dollar started moving sideways after extending Friday`s losses during early Asian trading.

The dollar fell on Friday amid the release of a few key economic data from the U.S. The downward move confirms the down trend the greenback has traced since it reached multi-day highs against most other majors in the last week of July.

The U.S. unemployment rate rose to 4.6% in July compared to the 4.5% expected by analysts. The non-farm payrolls increased 92,000 over the past month, but came in far less than the anticipated figure of 127,000.

Investors now turn toward the FOMC meting scheduled for tomorrow. The committee is not expected to alter the official interest rate from 5.25%, but the accompanying statement is likely to be scrutinized by the markets to glean clues towards any change in the Fed`s future policy stance.

Many expect the FOMC to shift its focus to sub-prime problems in the US housing markets from inflation, and hence, to issue dovish comments. There are also expectations that the Fed will cut interest rates by the end of 2007. The PCE deflator had dropped to 1.9% in July from an upwardly revised 2.0%, according to the personal income and outlays report released by the Bureau of Economic Analysis last week.

The Bank of England and the European Central Bank left the key interest rates unchanged at 5.75% and 4.0% respectively on Friday, but the ECB signaled a rate hike in September. Firmer Euro-zone economy and narrower gap between ECB and FOMC rates are expected to push the US dollar lower in the near future.

Also, the unwinding of carry trades due to risk aversion by investors has lead to the strengthening of low-yielding currencies like the yen and the franc. The recent fall had pushed the dollar to a 27-month low versus the Swiss franc and a new multi-month low versus the Japanese unit.

Against the euro, the dollar extended its Friday`s losses during early Asian trading on Monday and hit as low as 1.3837 by about 6:00 pm ET Sunday. This set a 13-day low for the greenback compared to the 20-day high of 1.3608 hit on 30th July. The pair is now moving sideways between 1.3806 and 1.3817 in comparison with the all-time low of 1.3850 hit by the pair on 24th July.

The dollar saw weakness versus the Japanese yen during early Asian deals on Monday extending its last week losses. The pair hit a new multi-month low of 117.18 by about 5:55 pm ET Sunday. However, edging up from there, the greenback remained sideways versus the yen all through the Japanese deals on Monday.

The US dollar weakened heavily against the Swiss franc on Friday amid the US data releases. The pair declined further in early Asian deals on Monday and hit a 27-month low of 1.1816 by about 6:00 pm ET Sunday. Thereafter, the pair moved range-bound around 1.185, and the next likely long term level of support is seen around 1.148.

Friday`s force pushed the pound-dollar to 2.0458, a one-week low for the US currency. The pair had been on a downtrend after it hit a 20-day high of 2.0180 on 30th July. The greenback, however, edged up in early Asian deals on Monday but lost its momentum shortly. The pair has lately hit 2.0459, compared to the multi-year low of 2.065 hit on 24th July.

Wednesday, August 01, 2007

Yen Weaker Against Major Counterparts, Wednesday, August 01, 2007 6:39:13 PM

The Japanese yen saw weakness against the other majors on Wednesday in New York. The yen moved away from a multi-month high against the euro, and also dropped against the sterling and greenback. Japanese currency investors considered data showing that new vehicle sales in the nation fell 9.7% year-over-year in July.

The yen slipped slightly against the pound after giving up earlier gains. The Japanese currency rose overnight and into the morning until about 2 a.m. It moved lower starting at around 6 a.m. and declined for about two hours before leveling off. The pair was flat for the rest of the rest of the morning and into the early afternoon, but the yen added further losses in the late afternoon and into the early evening. The currencies were at 241.91 at 6:35 p.m. ET. Traders mulled data showing that U.K. consumer confidence saw little change in July, adding a point to reach 95.

The yen dropped against the euro Thursday in New York after earlier touching a 3 Ѕ month high earlier in the morning. The Japanese currency rose to 160.46 at 4:45 a.m. ET, its highest mark since mid-April. It edged lower from there, however, for about five hours. The yen rallied in the mid-day, but the slipped again in the late afternoon and traded at 162.92, near its daily low, at 6:30 p.m. ET. . Traders considered data showing the Euro zone Purchasing Manager`s Index for the manufacturing sector declined to 54.9 in July from 55.6 in June.

The yen slipped against the dollar on Wednesday morning in New York after giving up earlier gains. The Japanese yen advanced during the overnight levels until about 6 a.m. ET when it began to decline. The pair stabilized at around 8 a.m. for the rest of the morning and into the afternoon. The yen began to decline again at around 3 p.m. and added sharper losses at around 6 p.m. ET. The pair traded at 119.09 at 6:30 p.m. ET. Greenback traders mulled over better-than-expected pending home sales data and weaker-than-expected ISM manufacturing and employment data.

Singapore Dollar Advances Versus Other Majors, Wednesday, August 01, 2007 6:15:01 PM

The Singapore dollar saw strength against the majors on Wednesday in New York. The currency moved up in mid-day trading and was up for the day against the greenback and euro. It was near its overnight levels against the sterling.

The Singapore dollar was up slightly against the greenback on Wednesday in New York. The currency fell in early hours before leveling off. It edged higher for several hours from there and then added further gains in the later afternoon. It traded at 1.5174 at 6 p.m. ET.

The Singapore currency rallied in mid-day trading against the euro to move up for the day against the euro on Wednesday in New York. The Singapore dollar fell in overnight trading and remained lower through the morning. The currency began to rise at around 10 a.m. and continued to do so for about four hours. Trading was sideways from there and the pair traded at 2.0740 at 6:05 p.m. ET.

The Singapore dollar was unchanged against the sterling on Wednesday in New York. The currencies were range-bound until about 8:30 a.m. when the sterling rallied sharply. The Singapore solar erased those losses with a mid-day rally. Trading in the later afternoon was choppy, and the pair was at 3.0820 at 6:10 p.m., near the overnight mark.

Aussie Moves Up Against Other Majors, Wednesday, August 01, 2007 5:56:56 PM

The aussie saw strength against the other majors on Wednesday in New York, posting its biggest gains in the later afternoon. Traders mulled data showing Australia`s trade deficit widened to a seasonally adjusted A$1.751 billion in June from a revised deficit of A$970 million in the prior month. The result topped the expected deficit of A$1.2 billion for June. Additional news stated that the Reserve Bank of Australia`s Commodity Price Index slipped 0.1% in SDR terms in July, after a revised decline of 0.9% in June.

The Australian dollar surged above a resistance level and moved to a new daily high against the greenback during late-afternoon trading on Wednesday in New York. Trading was uncertain through the morning and into the morning until about 3 p.m. ET. The aussie began to rise from there and a few hours later, it broke above resistance that had persisted since Tuesday afternoon. The pair is traded at 0.8561 at 5:40 p.m. ET.

The aussie moved up against the euro in afternoon trading on Wednesday in New York. The Australian dollar fell in the overnight hours, getting as low as 1.6163 at 2 a.m. ET. The aussie trended higher for several hours before leveling off. It added further gains with a rally that started at around 3 p.m. ET. The pair was at 1.5967 at 5:40 p.m. ET.

The aussie gained in the sterling on Wednesday in New York, breaking out of a range in the later afternoon. The currencies were range-bound until the aussie surged with a rally that started at around 3 p.m. ET and continued for the rest of the afternoon. The pair traded at 2.3728 at 5:50 p.m. ET.

New Zealand Dollar Moves Higher Against Majors, Wednesday, August 01, 2007 5:34:16 PM

The kiwi saw strength against the other majors in late-afternoon trading on Wednesday in New York. The currency moved away from a near-term low against the sterling and also gained on the dollar and euro. . The currency moved with little news from the area.

The New Zealand dollar has surged above a resistance level against the greenback in late-afternoon trading in New York. The pair was uncertain through the morning and early afternoon. The kiwi began to rise at around 3:15 p.m. ET and continued to do so for the next two hours. It is currently at 0.7662 against its U.S. counterpart.

The kiwi saw strength in the later afternoon against the euro and was up for the day on Wednesday in New York. The New Zealand currency fell in early trading, but bounced back later in the morning to recoup those losses. It gained again starting at around 3 a.m. ET and continued to climb for a few hours.

The kiwi moved up on the pound in afternoon trading on Wednesday in New York. The New Zealand currency was range-bound with the sterling until breaking ahead of resistance at around 4:30 p.m. ET. The rally took the aussie away from a two-month low.

Jobless Claims And Factory Orders Scheduled For Release Thursday - Economic Preview, Wednesday, August 01, 2007 4:45:06 PM

After yet another day of mixed economic reports, investors are more confused than ever. Their uncertainty is clearly reflected in the market, which has become increasingly volatile. Though most attention is still focused on Friday`s employment data, a handful of economic reports scheduled for release Thursday should have capture investors interest.

First, at 8:30 am ET jobless claims for the week will be made public. Unemployment claims are compiled weekly and monitor the number of individuals who filed for unemployment insurance for the first time. For investors, jobless claims are a simple way to show the strength of the job market. Fewer claims mean a stronger job market, and vice-versa.

Jobless claims fell by 2,000 for the week of July 21 to 301,000. For the week of July 28th analysts predict a slight increase in claims, up to 310,000.

At 10:00 am ET data on Factory Orders for June will be released. They represent the dollar level of new orders for both durable and nondurable goods. Investors pay close attention to this report, as it is a good indicator of the condition of the manufacturing sector. For June, economists predict a 1 percent increase in orders. Orders fell a one half of a percent in May, led by a 2.8 percent drop in durable goods orders. Nondurables, however, performed well posting a 1.6 percent gain. Durable goods orders recently posted gains for June, leading analysts to expect an increase in factory orders.

Dollar Largely Uncertain Against Major Counterpart, Wednesday, August 01, 2007 4:11:41 PM

The dollar was generally uncertain against its major counterparts on Wednesday morning in New York. The greenback was little changed amid choppy trading against the sterling and euro. The buck was up on the yen. Greenback traders mulled over a slew of economic data released in the morning in the U.S. Pending home sales data for June rose by 5%, the ISM manufacturing index came in lower-than-expected at 53.8 and the ADP employment report showed weaker-than-expected American job growth in July.

The U.S. dollar was little changed against the euro on Wednesday in New York. After an early rise, the greenback began to move lower at around 5 a.m. ET. It dropped sharply a few hours following the release of employment data and edged even lower in the later morning. The greenback gained some strength in the afternoon and moved to 1.3670 at 4 p.m. ET. Overall, trading has been uncertain over the last few days. Traders considered data showing the Euro zone Purchasing Manager`s Index for the manufacturing sector declined to 54.9 in July from 55.6 in June.

The dollar was uncertain against the sterling on Wednesday in New York. The greenback fell sharply following the release of employment data in the mid-morning. The dollar edged higher for the rest of the morning and into the afternoon,, but dropped again at around 3:45 p.m. The pair traded 2.0301 at 4 p.m. Traders mulled data showing that U.K. consumer confidence saw little change in July, adding a point to reach 95.

The dollar saw afternoon strength against the yen on Wednesday and moved to a daily high. The greenback fell during the overnight levels until about 6 a.m. ET when it began to climb for about four hours. It added further gains with a rally that started at around 3 p.m. ET. The pair was at 118.95 at 4:05 p.m. ET. Japanese currency investors considered data showing that new vehicle sales in the nation fell 9.7% year-over-year in July.

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