Forex News

U.S. Dollar Holds Steady but Further Weakening Expected - Wednesday, October 06

2010-10-06T03:20:00.000-07:00

In Asian trading today, the U.S. Dollar held steady versus the Japanese Yen, but the market is merely waiting for the greenback to further soften once the Federal Reserve Bank takes additional quantitative easing measures, as most investors anticipate they will.

November 2nd and 3rd will be the next scheduled meeting of the Fed’s Open Market Committee; speculation that additional steps will be taken by the central bankers in an effort to spur on the sluggish economy is practically a foregone conclusion. As reported at 2:50 p.m. (JST) in Tokyo, the U.S. Dollar held at 83.17 Yen, just off Tuesday’s late trading in New York of 83.18 Yen.

Investors will use this week’s release of payroll data to help gauge any potential movements by the Fed. Economists are predicting that non-farms payroll data will show an increase in new jobs by 20,000; in August, approximately 10,000 jobs were shed. Should the forecast prove incorrect, expect that the U.S.

Dollar will be more aggressively sold, with a target of 82.90 Yen, nearing the level at which the Japanese Ministry of Finance intervened. Whether or not Japan will intervene again remains to be seen, as many investors feel certain that it would not be any time soon, given the recent quantitative easing measures taken by the Bank of Japan.

FOMC Cuts by 50-bp, Signals Further Easing

2008-11-13T13:03:00.000-08:00

The Federal Reserve cut its benchmark lending rate by 50-basis points to 1% by unanimous vote and also lowered its discount rate by 50-basis points to 1.25%. The currency markets were heavily pricing in the aggressive move with the greenback tumbling against the euro and sterling heading into the decision. The dollar fell by over 700-pips versus the pound from 1.5765 to 1.6473 while dropping from 1.2583 to 1.2990 against the euro.

In the accompanying FOMC policy statement, the Fed delivered a somber assessment of the economy saying “the pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures”. The statement also paved the way for additional policy easing at the next meeting in December, revealing expectations for inflation to continue to moderate over the coming quarters. The Fed said “the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit”. Accordingly, we look for the FOMC to slash rates again in December with a 25-basis point cut bring the year-end benchmark lending rate to 0.75%.

The economic reports released earlier in the session saw headline durable goods orders for September rise by 0.8% reversing from a steep 4.8% decline a month earlier. The excluding transportations figure improved to -1.1% from -3.3% previously. Several key reports are slated for release in the Thursday session, with weekly jobless claims, Q3 advanced GDP, and Q3 core PCE. Weekly jobless claims are seen largely unchanged at 475k, from 478k a week earlier. The advanced Q3 GDP reading is estimated to post a 0.5% decline compared with a 2.8 gain previously.

Yen tanks amid Global Equity Rally

2008-11-13T13:02:00.002-08:00

A rebound in the global equity bourses prompted traders to dump the yen across the board. The Japanese currency sold-off sharply from 114.42 against the euro to 122.57 and tumbled to 153.40 from 142.90 versus the sterling. Meanwhile, the greenback was initially higher versus the euro and sterling, hovering near its one-year highs around the 1.24 and 1.55 levels, respectively.

The Conference Board’s October consumer confidence index plunged to a record low at 38.0, sharply missing consensus estimates for a decline to 59.8 from a revised 61.4 from September. The present situation component sank to its lowest level since 1992 at 41.9, posting a steep drop from a month earlier at 61.1. The Case-Shiller home price survey fell by 1.0% in August versus the 0.9% decline in the previous month and posted a steeper 16.6% drop compared from a year earlier at 16.3%. Meanwhile, the Richmond Fed manufacturing survey deteriorated to -26 in October, versus -18 a month earlier. However, the services index improved to -10, up from -15 from the previous month.

The sharp declines in consumer confidence further support calls for a 50-basis point rate cut when the FOMC announces its policy decision tomorrow afternoon. The results for the Fed’s two-day meeting will be released on Tuesday at 2:15pm. We anticipate the FOMC to deliver a 50-basis rate cut, lowering its benchmark lending rate to 1.0%. The accompanying statement will likely emphasize further downside risks to growth and pave the way to another 25-basis point rate cut at its December 16th meeting to 0.75%.

JPY Rallies on Safe Haven Flows

2008-11-13T13:02:00.001-08:00

Burgeoning fears of a potentially severe global economic recession continued to prop the dollar and yen higher amid sentiment that the ECB and BoE will need to aggressively ease policy to stimulate their economies. Safe haven flows propped the greenback to 1.2729 versus the euro and 1.6046 against the sterling, while the yen surged to 123.17 to the euro and 154.61 versus the pound. Global equity bourses extended recent losses, with the Dow Jones and Nasdaq trading under heightened volatility and whipsawing by the afternoon session.

Weekly jobless claims released earlier in the session unexpectedly crept higher, edging up to 478k, versus 461k in the previous week. On Friday, the data slated for release include September existing home sales, which seen up slight at 4.93 million units.

EUR, GBP Plunge to Multi-year Lows

2008-11-13T13:01:00.001-08:00

Global recessionary fears dominated the market headlines in the Wednesday session, with US equity bourses posting steep losses, crude oil slumping beneath the $70 per barrel level to $67.12 and spot gold at a one-year low to $774.57 per ounce. The greenback and yen benefited from continued safe-haven flows, posting steep gains versus the euro and sterling.

The dollar surged to 1.2737 against the euro for the first time since November 2006. Although the FOMC will likely cut rates by 50-basis points to 1.0% when it meets next week, markets anticipate more aggressive policy easing from the ECB in the near-term to support the struggling economy.

US dollar advances further to 4-day high versus Israeli shekel, Friday, September 26, 2008 1:33:16 PM

2008-09-26T10:38:00.000-07:00

Extending early European session`s uptrend, the US currency advanced to a 4-day high of 3.4438 against its Israeli counterpart at about 6:15 am ET. Thereafter, the pair ticked down slightly and as of now is worth 3.4242. The dollar-shekel pair closed yesterday`s deals at 3.4100.

Swiss Franc Lacks Direction With Majors, Friday, September 26, 2008 1:10:25 PM

2008-09-26T10:37:00.004-07:00

The Swiss franc posted lackluster performances against its major counterparts on Friday in New York. Traders weighed a report showing the Swiss leading indicator fell less than expected in September.

Indicting continued easing in Swiss economic growth, the KOF leading indicator in September declined further to 0.62 points from a revised 0.73 points in August, the KOF Economic Institute said. The August reading was upwardly revised from 0.68. Economists were looking for a reading of 0.54 for September.

According to the institute, Switzerland`s annual gross domestic product growth will slow in the months ahead. Among the three modules of the KOF indicator, the Core GDP module continued its downward trend. Meanwhile, the construction and banking modules showed a stabilizing effect.

The Swiss franc lacked direction with the dollar on Friday. The pair bounced between 1.0911 and 1.0828 throughout the day, staying below Monday`s multi-week high.

Investors pondered a slew of reports showing U.S. gross domestic product and personal consumption fell unexpectedly in the second quarter, while a University of Michigan survey showed consumer confidence dropped more than expected in September.

Versus the euro, the franc pulled back from a weekly high on Friday. After advancing to 1.5860 by 7:30 am ET, the euro fell back to 1.5909 in the afternoon. Traders digested a report showing French gross domestic product contracted at an expected rate in the second quarter.

Against the pound on Friday, the franc moved with uncertainty. The two currencies moved between 1.9941 and 2.0024, staying above last week`s monthly low.

The Bank of England said it will increase the term of its existing operations to lend US dollar funds against collateral eligible in short-term repos and US Treasuries. Alongside an operation to lend funds overnight, the central bank will lend US$30 billion of funds for one week today. The Bank of England`s overnight dollar repo operations will be US$10 billion on Friday.

Canadian Dollar Shows Mild Strength Versus Majors, Friday, September 26, 2008 12:53:59 PM

2008-09-26T10:37:00.003-07:00

The loonie showed mild strength against its major counterparts on Friday in New York, most notably reaching a fresh weekly high against the euro.

Crude oil dropped on Friday as the ongoing problems in the U.S. financial sector could continue to cause traders to feel energy demand could be dragged lower. Light sweet crude for November delivery moved to $105.67, down $2.35 on the session. Prices hit as low as $104.25 in overnight deals.

The Canadian dollar experienced choppy trading with the U.S. dollar on Friday. The pair bounced between 1.0372 and 1.0314 throughout the day, staying just below Thursday`s multi-month high.

Investors weighed a slew of reports showing U.S. gross domestic product and personal consumption fell unexpectedly in the second quarter, while a University of Michigan survey showed consumer confidence dropped more than expected in September.

The loonie climbed to a fresh weekly high versus the euro on Friday. The Canadian dollar advanced to 1.5071 just after 6:00 am ET, up from an early morning low of 1.5164. Traders pondered a report showing French gross domestic product contracted at an expected rate in the second quarter.

Aussie recoups losses against most majors, Friday, September 26, 2008 12:37:35 PM

2008-09-26T10:37:00.001-07:00

The Australian dollar strengthened against most of its major counterparts from previous session`s downtrend in New York morning deals on Friday.

After touching a 1-week low of 0.8243 against the US dollar and 0.8545 versus the Canadian dollar at about 3:55 am ET, the Aussie gained ground in New York morning session on Friday. As of now, the Australian currency is trading at 0.8317 against the greenback and 0.8608 versus the loonie.

The U.S. Commerce Department revealed that Gross Domestic Product grew at a rate of 2.8 percent in the April-to-June period. This was slower than the 3.3 percent pace that was reported last month.

The statistics also showed that personal spending advanced at a 1.2 percent rate during the quarter, revised down from the 1.7 percent that was previously estimated.

The Aussie ticked up to 1.7539 against the euro and 88.45 versus the yen by about 10:00 am ET from last session`s weekly lows of 1.7686 and 86.89, respectively. At present, the Aussie is worth 1.7577 against the euro and 88.26 versus the yen.

Japanese yen pares gains against most majors, Friday, September 26, 2008 12:12:14 PM

2008-09-26T10:36:00.001-07:00

The Japanese currency pared early gains against most of its major counterparts during New York mid-day trading on Friday.

The Ministry of Internal Affairs and Communications said that core inflation in Japan increased 2.4 percent on year in August, in line with analyst expectations. It also held steady from the July figure, equaling an 11-year high.

Overall nationwide CPI was up an annual 2.1 percent, matching forecasts after a 2.3 percent gain on year in the previous month. Overall inflation gained 0.3 percent on month.

After hitting an 8-day high of 105.05 by about 8:35 am ET, the yen reversed its direction against the US dollar in New York mid-day deals today. Currently, the pair is worth 106.08.

The U.S. Commerce Department revealed that Gross Domestic Product grew at a rate of 2.8 percent in the April-to-June period. This was slower than the 3.3 percent pace that was reported last month.

The Japanese currency trended down against the euro and the British pound in New York morning deals from previous session`s uptrend. As of now, the yen is trading at 154.77 against the euro and 195.14 versus the pound, compared to early 1-week highs of 153.50 and 193.22, respectively.

Against the Swiss franc, the yen weakened to 97.76 by about 10:00 am ET from last session`s 4-day high of 96.63 today. Presently, the franc-yen pair is trading near 97.40.

Global Central Banks Brace For Liquidity Crunch, Friday, September 26, 2008 11:10:04 AM

2008-09-26T10:35:00.002-07:00

Friday, the Federal Reserve and leading European central banks announced coordinated measures to address funding pressures. Central banks in Asia Pacific also took measures to boost liquidity.

The Fed along with the European Central Bank, the Bank of England and the Swiss National Bank provided U.S. dollar liquidity with a one-weak maturity. Reiterating that they will continue to work together, the central banks said they are ready to take additional measures as needed to deal with the ongoing pressures in the funding markets.

The latest liquidity boost from global central banks came following a breakdown of talks over a US$700 billion rescue plan for the US financial system. Sentiment in financial markets also took a hit on the news of collapse of U.S. bank Washington Mutual. Late Thursday, JPMorgan Chase & Co. said that it has agreed to acquire all deposits and assets of Washington Mutual for about $1.9 billion, after the struggling company was seized by regulators in what is considered as the largest bank failure in U.S. history.

In a statement, the Fed said the Federal Open Market Committee authorized a $10 billion increase in its temporary swap facility with the ECB and a $3 billion increase in its facility with the SNB. These expanded facilities will support the provision of U.S. dollar liquidity in amounts of up to $120 billion by the ECB and up to $30 billion by the SNB.

Together, these changes represent a $13 billion addition to the $277 billion previously authorized swap deals with other central banks. Previously, the Fed had authorized swap lines with the Bank of Japan ($60 billion), the Bank of England ($40 billion), the Reserve Bank of Australia ($10 billion), the Bank of Canada ($10 billion), the Bank of Sweden ($10 billion), the National Bank of Denmark ($5 billion), and the Bank of Norway ($5 billion). The Fed said these arrangements have been authorized through January 30, 2009.

The actions were in response to the crisis at U.S. financial firms, which took excessive bets on mortgage-backed investments resulting in the write off of billions of dollars of assets. The troubled U. S. investment bank Lehman Brothers went bankrupt, while Merrill Lynch got sold to the Bank of America in a quickly-negotiated $50-billion transaction. Meanwhile, the U.S. government stepped in to save insurer AIG from sinking. The Fed extended an $85 billion loan, essentially nationalizing the firm. Further, investment banks Goldman Sachs and Morgan Stanley converted themselves into regulated commercial banks.

In the latest move, the ECB decided to provide US dollar one-week funding over the quarter end to European banks, applying a variable rate tender procedure and with an intended volume of US$35 billion. The bank received bids worth US$82.495 billion from 52 banks. The bank offered the funds at a marginal rate of 4.5%. In its overnight operations, the ECB lent US$30 billion, reduced from an initial US$40 billion, against a bid amount of US$41.38 billion from 33 bidders at a marginal rate of 2.25%.

The SNB allotted US$4.9 billion at a marginal interest rate of 1% in its one-week repo operation, which had twelve banks participating. In its overnight operation, the central bank allotted US$7 billion against a bid amount of US$8.3 billion from 13 banks at a marginal rate of 1.82%.

The Bank of England said in a statement that it will increase the term of its existing operations to lend US dollar funds against collateral eligible in short-term repos and US Treasuries. Alongside an operation to lend funds overnight, the central bank will lend US$30 billion of funds for one week today.

The UK central bank`s overnight dollar repo operation was US$10 billion on Friday, reduced from US$40 billion earlier, against a bid amount of US$12.36 billion. The cover ratio was 1.24 and weighted average accepted rate of 2.208%. In the one-week operation, the bank received US$31.65 billion worth bids and the cover ratio was 1.06%. The weighted average accepted rate was 2.991%.

The BoE added that Bank`s long-term repo operations against extended collateral, including mortgage securities, will for a period be held weekly and enlarged. The first such operation will be held on September 29. It will be an auction for GBP40 billion, for maturity to January 15, 2009.

Meanwhile, the Danish central bank extended the banks and mortgage credit institutes lending facilities given the tight liquidity conditions. The Danmarks Nationalbank said it will introduce a facility offering banks and institutes credit on the basis of their excess capital adequacy and will increases the number of assets accepted as collateral. These measures will come into effect on September 26. The central bank received bids worth US$16.8 billion against an offered amount of US$5 billion in its US dollar auction.

Markets in Asia Pacific also received funds on Friday. Data from the Reserve Bank of Australia offered A$816 million today in repo. Further, the Australian central bank reportedly said it offered US$10 billion in its first US dollar repurchase operation. Further, the Australian government announced that it will invest A$4 billion in two tranches in the domestic residential mortgage-backed securities to boost home lending.

Elsewhere in the region, the Bank of Japan injected 1.5 trillion yen or US$14billion into its money markets.

The South Korean Finance Ministry announced that it would supply at least US$10 billion into the swap market in the coming weeks in order to provide more liquidity. Choi Jong-ku, head of the ministry`s international financial bureau said the central bank would continue to supply dollars whenever necessary.

Hong Kong Dollar Recovers Asian session Losses against US Dollar, Friday, September 26, 2008 7:37:49 AM

2008-09-26T10:35:00.001-07:00

The Hong Kong dollar recovered Friday`s Asian session losses against the US dollar during early European deals. The local dollar thus climbed from a 1-week low of 7.7840 to 7.7697 against the greenback by about 4:00 am ET. The pair that closed Thursday`s deals at 7.7785 is now worth 7.7743.

Russian ruble slips to 2-day low against US dollar, Friday, September 26, 2008 6:37:48 AM

2008-09-26T10:34:00.002-07:00

Against the US dollar, the Russian ruble edged down to a 2-day low of 25.0850 at about 6:25 am ET Friday. If the Russian currency weakens further, it may likely target the 25.3 level. The dollar-ruble pair closed Thursday`s North American session at 25.0275.

European currency falls to 1-week low against Japanese yen, Friday, September 26, 2008 6:09:45 AM

2008-09-26T10:34:00.001-07:00

Extending Asian session downtrend, the European currency declined to 1-week low against the Japanese yen and a 3-day low versus the Swiss franc during early European deals on Friday. The euro also remained down against the currencies of US and UK.

In economic news, Germany`s import price inflation remained stable in August at its highest level in nearly eight years on higher energy prices.

The Federal Statistical Office said today that the import price index rose 9.3% year-on-year in August, marking the same pace as in July, while quicker than the 8.9% increase in June. Meanwhile, economists had forecast the rate to ease to 9.1%. The August rate was the highest since November 2000. In the same period last year, prices were down 0.6%.

The French economy contracted 0.3% quarter-on-quarter in the second quarter, confirmed the initial estimate, a final report from the statistical office INSEE revealed today. The economy had expanded 0.4% in the first quarter.

The Federal Reserve, the Bank of England, the European Central Bank, or ECB and the Swiss National Bank or SNB revealed today that they are introducing operations to provide U.S. dollar liquidity with a one-week maturity using their reciprocal currency arrangements or swap lines.

The Federal Open Market Committee authorized a $10 billion increase in its temporary swap facility with the ECB and a $3 billion increase in its facility with the SNB. According to the Fed, these expanded facilities will now support the provision of U.S. dollar liquidity in amounts of up to $120 billion by the ECB and up to $30 billion by the SNB.

Against the US dollar, the European currency showed weakness during early deals on Friday. At 3:55 am ET, the euro-dollar pair touched a low of 1.4568, compared to 1.4610 hit late New York Thursday. The pair is now worth 1.4578.

The European currency that closed Thursday`s North American session at 0.7954 against the British pound edged down to 0.7940 at 5:05 am ET Friday.

The Bank of England said today that it will increase the term of its existing operations to lend US dollar funds against collateral eligible in short-term repos and US Treasuries.

Alongside an operation to lend funds overnight, the central bank will lend US$30 billion of funds for one week today. The Bank of England`s overnight dollar repo operations will be US$10 billion on Friday.

Against the Swiss franc, the single currency edged lower during Friday`s early deals. At 3:30 am ET the euro-franc pair slipped to a 3-day low of 1.5880, compared to 1.5937 hit late New York Thursday. The pair is currently quoted at 1.5891.

The Swiss leading indicator in September declined further to 0.62 points from a revised 0.73 points in August, the KOF Economic Institute said today. August`s reading was upwardly revised from 0.68. Economists were looking for a reading of 0.54 for September.

The euro that closed Thursday`s New York deals at 155.70 against the Japanese yen declined to a 1-week low of 153.50 at 3:55 am ET Friday. The euro-yen pair is currently trading at 153.86.

Core inflation in Japan rose 2.4 percent on year in August, in line with analyst expectations, the Ministry of Internal Affairs and Communications said today. It also held steady from the July figure, equaling an 11-year high. Overall nationwide CPI was up an annual 2.1 percent, matching forecasts after a 2.3 percent gain on year in the previous month. Overall inflation gained o.3 percent on month.

Across the Atlantic, the US final second quarter GDP, personal consumption expenditure and the University of Michigan`s confidence survey are scheduled for release later in the New York session.

Dollar weakens versus major Latin American currencies, Thursday, September 25, 2008 4:49:55 PM

2008-09-25T14:21:00.001-07:00

The US currency weakened against its major Latin American counterparts during New York trading on Thursday after some significant economic reports were released during morning session turned out to be disappointing.

According to a report released today by the US Department of Commerce that new home sales fell 11.5% to a seasonally adjusted annual rate of 460,000 units in August from the upwardly revised July rate of 520,000. The Commerce Department also said that durable goods orders fell 4.5% in August following a downwardly revised 0.8% increase in July.

The Department of Labor released that jobless claims unexpectedly jumped to 493,000 from the previous week`s revised figure of 461,000.

The US dollar dropped against the Brazilian real during New York trading on Thursday. The greenback fell to a 2-day low of 1.8145 versus the real by about 3:25 pm ET from today`s high of 1.8655. The pair that closed yesterday`s deals at 1.8645 is now worth 1.8210.

The Brazilian Census Bureau (IBGE) reported Thursday that unemployment declined to 7.6 percent in August, compared to 8.1 percent in July.

After hitting a 1-week high of 10.8615 by about 8:00 am ET, the US currency lost ground against its Mexican counterpart in New York afternoon deals on Thursday. At about 3:25 pm ET, the pair slipped to 10.6975, compared to Wednesday`s closing value of 10.8500.Currently, the greenback is trading at 10.72 versus the Mexican peso.

During New York trading on Thursday, the US dollar weakened against the Chilean peso. The pair dropped to 537.05 by about 1:15 pm ET from early high of 541.50. Presently, the pair is trading at 537.28 from yesterday`s New York session close of 541.38. The pair had hit a multi-day high of 545.15 yesterday.

The dollar, which closed yesterday`s New York session at 2158.00 against the Colombian peso, dropped to 2077.50 in New York afternoon session today.

US dollar pares recent gains against most majors, Thursday, September 25, 2008 4:12:35 PM

2008-09-25T14:20:00.002-07:00

The US currency pared recent gains against most of its major counterparts during New York afternoon deals on Thursday. As of now, the greenback is trading near 1.4627 against the euro, 1.0898 versus the Swiss franc, 106.39 versus the Japanese yen, 1.8393 against the British pound and 0.8363 versus the Aussie.

Dollar weakens versus Chilean peso, Thursday, September 25, 2008 3:37:41 PM

2008-09-25T14:20:00.001-07:00

During New York trading on Thursday, the US dollar weakened against the Chilean peso. The pair dropped to 537.05 by about 1:15 pm ET from early high of 541.50. Presently, the pair is trading at 537.28 from yesterday`s New York session close of 541.38. The pair had hit a multi-day high of 545.15 yesterday.

US dollar eases from 1-week high against Mexican peso, Thursday, September 25, 2008 3:26:12 PM

2008-09-25T14:19:00.001-07:00

After hitting a 1-week high of 10.8615 by about 8:00 am ET, the US currency lost ground against its Mexican counterpart in New York afternoon deals on Thursday. Currently, the greenback is trading at 10.70 versus the Mexican peso, compared to Wednesday`s closing value of 10.8500.

Kiwi declines against US dollar, Thursday, September 25, 2008 2:54:07 PM

2008-09-25T14:18:00.001-07:00

Extending European deal`s downtrend, the New Zealand dollar declined against the US dollar during New York trading on Thursday. As of 2:45 pm ET, the kiwi dropped to 0.6798 versus the greenback, compared to early high of 0.6908. Presently, the kiwi-buck pair is worth 0.6817.Currently, the kiwi is trading near 22.62 versus the yen and 1.2248 against the Aussie.

Greenback drops to 2-day low versus Brazilian real, Thursday, September 25, 2008 2:44:27 PM

2008-09-25T14:17:00.000-07:00

The US dollar dropped against the Brazilian real during New York trading on Thursday. The greenback fell to a 2-day low of 1.8170 versus the real by about 2:30 pm ET from today`s high of 1.8655. The pair that closed yesterday`s deals at 1.8645 is now worth 1.8220.

The Brazilian Census Bureau (IBGE) reported Thursday that unemployment declined to 7.6 percent in August, compared to 8.1 percent in July.

Dollar Moves Higher Against Major Rivals, Thursday, September 25, 2008 1:58:46 PM

2008-09-25T14:16:00.001-07:00

The U.S. dollar gained on other majors as the U.S. government`s bailout plan may be nearing a solution. The greenback moved away from monthly lows against the euro and sterling and also gained on the yen and franc.

The dollar surged in afternoon trading and hit a three-day high before easing back. The greenback touched as high as 1.4559 giving back some of the gains and moving to 1.4588. The GfK consumer climate survey found that the German consumer sentiment index for October increased to 1.8 points from September`s revised 1.6 points.

The greenback gained sharply against the sterling, hitting as high as 1.8304 in the mid-afternoon. The gain took the greenback away from the five-week low of 1.8668 it reached earlier in the morning.

The dollar gained on the yen, reaching 106.71 in the mid-afternoon, and also climbed to 1.0917 against the Swiss franc. The greenback was mildly lower at 1.0341 against the Canadian loonie.

US dollar eases from 2-day high versus South African rand, Thursday, September 25, 2008 1:56:26 PM

2008-09-25T14:15:00.001-07:00

After hitting a 2-day high of 8.2153 by about 7:50 am ET, the US currency declined against the South African rand in New York deals on Thursday. The dollar-rand pair dropped to 8.0825 at about 10:35 am ET from Wednesday`s New York session close of 8.1733. As of now, the pair is trading at 8.1200.

The Statistics South Africa reported on Thursday that producer price index rose 19.1% in August, faster than the 18.9% increase in July, but slower than the 19.3% rise expected by analysts. Export prices rose 7.8%, while import prices increased 23%.

US dollar weakens against Romanian Leu, Thursday, September 25, 2008 1:34:13 PM

2008-09-25T14:14:00.000-07:00

The US currency weakened against its Romanian counterpart in late European deals on Thursday. The dollar-Leu pair declined to 2.5001 by about 7:05 am ET, compared to yesterday`s closing value of 2.5029.

Thursday, the Board of the National Bank of Romania decided to maintain its monetary policy rate unchanged at 10.25% per annum. The decision matched economists` expectations.

Dollar Advances Against Most East European Currencies, Wednesday, September 24, 2008 7:35:36 AM

2008-09-24T04:41:00.001-07:00

The dollar advanced against the Czech koruna, Slovakian koruna and Polish Zloty during early deals on Wednesday. But the dollar weakened against the Turkish lira and the Hungarian forint, but moved range-bound versus the Estonian kroon

From US, the existing home sales report is scheduled at 10:00 am ET today. The US Federal Reserve Chairman Ben Bernanke`s testimony at Congress`s Joint Economic Committee is also scheduled at 10:00 am ET.

The dollar climbed to a 2-day high of 16.5750 against the Czech koruna by about 7:00 am ET Wednesday. The pair was worth 16.4800 at Tuesday`s close.

Against its Turkish counterpart, the dollar showed weakness during Wednesday`s early deals. At about 3:10 am ET, the dollar-lira weakened to 1.2374, compared to Tuesday`s closing value of 1.2453. Thereafter, the dollar has gained slightly and is presently trading at 1.2423.

The Turkish statistical office, Turkstat said the Production Workers Index rose 0.6% year-on-year and stood at 85.8 in the second quarter from 86.2 recorded in the first quarter. In the first quarter, the number of production workers was up 1.7%. A year-ago, the index was up 2%.

Against the Hungarian forint, the dollar fell after rising to a 2-day high of 164.64 by about 4:05 am ET. Presently the pair is trading at 164.07, compared to Tuesday`s closing value of 164.76.

In economic news, the volume of retail sales in Hungary declined year-on-year in July, a report by the Hungarian Statistical Office said today.

Retail sales volume fell a calendar-adjusted 1.8% in July compared with a 1.9% decline in June. The sales volume at current prices increased to HUF 556.7 billion from HUF 535 billion in the previous month. On a monthly basis, retail sales declined a seasonally and calendar adjusted 0.1% in July compared with a 0.3% fall in the previous month.

The US currency that was worth 20.6720 against the Slovakian koruna at yesterday`s close, hit as high as 20.6850 by about 7:00 am ET Wednesday.

The US dollar started ticking up against the Polish Zloty by about 2:45 am ET Wednesday. The dollar climbed from 2.2430 to 2.2697 by about 7:20 am ET. The pair was worth at 2.2607 Tuesday`s close.

The greenback largely moved sideways against the Estonian kroon during Wednesday`s early trading. The greenback largely bounced between 10.6850 and 10.6420, compared to 10.6470 hit late yesterday in New York. As of now, the pair is trading at 10.66.

US dollar hits 5-day high against Icelandic krona, Wednesday, September 24, 2008 7:22:11 AM

2008-09-24T04:40:00.000-07:00

During early European deals on Tuesday, the US dollar climbed to a 5-day high against the Icelandic krona. The dollar also showed strength against its Scandinavian counterparts.

Against the Swedish krona, the US dollar traded higher during early deals on Wednesday. At 5:30 am ET, the dollar-krona pair reached a high of 6.5855, compared to 6.5766 hit late New York Tuesday. The pair is currently trading at 6.5774.

The Swedish central bank and the Federal Reserve agreed today on a US$10 billion swap facility in order to improve liquidity conditions in global financial markets. The swap facility will expire on January 30, 2009.

Sweden`s economic tendency indicator, which measures business and consumer confidence in the economy, rose marginally to 86.0 in September from 85.6 in August, results of the latest economic tendency survey released by the National Institute of Economic Research, or NIER, showed today.

Further, the survey found that confidence in the Swedish manufacturing sector continued to decrease in September. The corresponding indicator fell to minus 14 from minus 12 in August. In July, the indicator logged minus 11. The September reading was in line with the consensus forecast.

The confidence indicator for the Swedish industry as a whole declined to minus 2 from minus 1 in August and plus 4 in July. On the other hand, the consumer confidence index rose to minus 14.4 from minus 16.5, while economists were expecting the index to fell to minus 17.

The US currency that closed Tuesday`s North American session at 5.6157 against the Norwegian krone edged higher to 5.6239 at 3:55 am ET Wednesday. The dollar-krone is now worth 5.6115.

Against its Danish counterpart, the greenback showed strength during Wednesday`s early deals. At about 4:05 am ET, the pair reached 5.0972, compared to Tuesday`s closing value of 5.0938. The pair is currently quoted at 5.0850.

Denmark`s national statistics office said today that the consumer confidence index rose to minus 11.1 in September from minus 12.2 in August.

The US dollar traded higher against the Icelandic krona during today`s early deals. At 5:35 am ET, the dollar-krona pair hit a 5-day high of 95.49, compared to Tuesday`s North American session close of 94.67.

The Statistics Iceland announced that the Consumer Price Index or CPI rose 14% year-on-year in September, smaller than the 14.5% rise recorded in August, which was its fastest pace since June 1990. Economists had expected for an increase of 14.2%. This was the first decline in the annual inflation rate since January.

The greenback that closed yesterday`s New York deals at 3.4201 touched a low of 3.4083 against the Israeli shekel at 5:45 am ET Wednesday. The dollar-shekel pair is currently trading at 3.4143.

The US dollar largely bounced between 8.17 and 8.10 against the South African rand during Wednesday`s early deals. The dollar-rand pair that closed Tuesday`s deals at 8.2037 is now worth 8.1525.

In central bank action, the Norges Bank is expected to announce its latest interest rate decision at 8am Eastern Time.
The economic reports scheduled for release in the U.S. include existing home sales for August and MBA mortgage applications for September. Additionally, investors may focus on Fed Chairman Ben Bernanke`s testimony at Congress` joint economic committee.

US dollar hits 2-day high against Czech Koruna, Wednesday, September 24, 2008 6:22:37 AM

2008-09-24T04:39:00.002-07:00

Against the Czech Koruna, the US dollar edged higher during early deals on Wednesday. At 6:10 am ET, the dollar-koruna pair reached a 2-day high of 16.5480, compared to 16.48 hit late New York Tuesday. If the pair gains further, 16.60 is seen as the next target level.

Icelandic krona slides to 5-day low against US dollar, Wednesday, September 24, 2008 5:47:03 AM

2008-09-24T04:39:00.001-07:00

Against the US dollar, the Icelandic krona traded lower during early deals on Wednesday. At about 5:25 am ET, the krona declined to a 5-day low of 95.26 per dollar, compared to 94.67 hit late New York Tuesday. If the krona drops further, 95.7 is seen as the next target level.

A report released by the Statistics Iceland showed that CPI rose 14 % on year in September compared to 14.5% rise in August.

British pound rises to new multi-week high against yen, Wednesday, September 24, 2008 5:21:02 AM

2008-09-24T04:38:00.002-07:00

Wednesday morning, the British pound reached a new week high against the Japanese yen and 2-day highs against the currencies of Europe and Switzerland. The pound also showed strength against the US dollar.

Against the US dollar, the British pound gained ground after hitting a low of 1.8507 at 1:35 am ET Wednesday. The pound-dollar pair is currently quoted at 1.8604, compared to 1.8525 hit late New York Tuesday.

The British currency edged down to 0.7928 against the European currency before reversing direction during early European deals on Wednesday. At 4:00 am ET, the pound reached a 2-day high of 0.7892 against the euro, compared to yesterday`s closing value of 0.7912.

The German IFO business conditions survey report for September, the Euro-Zone current account balance data for July and the Italian retail sales report for July released today, likely influenced deals in the euro-pound pair.

The Eurozone current account deficit narrowed to EUR1.7 billion in July on working day and seasonally adjusted basis, the European Central Bank said in a report today. The deficit for June was revised to EUR6.1 billion.

Results of the business confidence survey carried out by the Italian research institute, ISAE showed today that the nation`s business confidence indicator fell to 82.7 in September from 83.3 in August. Economists had expected the index to log a reading of 83.3. The September reading is the lowest October 2001.

German business sentiment fell to 92.9 in September from 94.8 in August, reports said citing a monthly survey from the Munich-based Ifo research institute today. The indicator stood below the expected reading of 94.1.

Against the Swiss franc, the sterling traded higher during early deals on Wednesday. The pound-franc pair that closed Tuesday`s North American session at 2.0127 is currently trading at a 2-day high of 2.0227.

The British currency extended its Asian session gains against the Japanese yen during early European deals on Wednesday. At 3:15 am ET, the sterling-yen pair reached a new multi-week high of 197.48, compared to Tuesday`s close of 195.55. The pair is now worth 197.17.

An index that measures Japanese all-industry business conditions in Q3 was down 10.2 percent compared to the previous quarter, the Ministry of Finance said today in its business survey index. That was higher than the -15.2 percent quarterly decline in Q2.

At 6.00am ET, the Confederation of British Industry is scheduled to release report on distributive trade for September.

The economic reports scheduled for release in the U.S. include existing home sales for August and MBA mortgage applications for September. Additionally, investors may focus on Fed Chairman Ben Bernanke`s testimony at Congress` joint economic committee.

Euro extends gains against most majors, hits 2-day high against franc, Wednesday, September 24, 2008 3:29:33 AM

2008-09-24T04:38:00.001-07:00

The European currency extended its Asian session gains against the US dollar, the Swiss franc and the Japanese yen. The euro thus reached a 2-day high against the franc. On the other hand, the euro showed choppy trading against the British pound.

The industrial economic situation in France deteriorated further, a monthly business survey published by the statistical office INSEE showed today. The business confidence index eased to 92 in September from 97 in July. The indicator stands eight points below its long-term average and the expected level of 97 in September.

Against the US dollar, the European currency edged higher to 1.4710 during early Asian deals on Wednesday. Thereafter, the euro slipped slightly but rebounded after hitting a low of 1.4648 at 2:05 am ET. The euro-dollar pair is currently trading at 1.4688, compared to 1.4652 hit late New York Tuesday.

The European currency largely bounced between 0.7925 and 0.7909 against the British pound during today`s early deals. The pair is currently trading at 0.7915, compared to 0.7912 hit late New York yesterday.

Against the Swiss franc, the European currency traded higher during early deals on Wednesday. At 3:00 am Eastern Time, the euro-franc pair reached a 2-day high of 1.5971. This may be compared to Tuesday`s closing value of 1.5917.

The euro extended its Asian session gains against the Japanese yen during early European deals on Wednesday. The euro-yen pair is currently trading at 156.18, compared to Tuesday`s closing value of 154.66.

An index that measures Japanese all-industry business conditions in Q3 was down 10.2 percent compared to the previous quarter, the Ministry of Finance said today in its business survey index. That was higher than the -15.2 percent quarterly decline in Q2.

At 4:00 am Eastern Time, the German research institute Ifo is expected to release results of its business climate survey for September. The expectations index is forecast to climb to 87.3 from 87 recorded in August. The business climate index is expected to log 94.1,down from 94.8 in the previous month. At the same time, the current assessment index is predicted to decline to 101.9 from August`s 103.2.

Elsewhere, the European Central Bank is slated to release the Eurozone current account data for July. In June, the seasonally adjusted current account balance had recorded a deficit of EUR8.2 billion. Meanwhile, the unadjusted current account balance was a deficit of EUR1 billion.

The Italian statistical office ISTAT is also expected to release its report on July retail sales at 4.00am ET. Retail sales are expected to increase 0.1% on a monthly basis, reversing a 0.1% rise seen in June. Year-on-year, retail sales are forecast to decline 0.8%, after recording a much bigger fall of 3.4% in June.

The economic reports scheduled for release in the U.S. include existing home sales for August and MBA mortgage applications for September. Additionally, investors may focus on Fed Chairman Ben Bernanke`s testimony at Congress` joint economic committee.

Kenyan shilling falls to 6-day low against US dollar, Wednesday, September 24, 2008 2:37:43 AM

2008-09-24T04:37:00.000-07:00

At 2:20 am ET Wednesday, the Kenyan shilling declined to a 6-day low of 73.50 against the US dollar. If the shilling drops further, 73.6 per dollar is seen as the next target level. The dollar-shilling pair closed Tuesday`s New York deals at 73.15.

US dollar reverses early Asian session losses against majors, Wednesday, September 24, 2008 1:13:14 AM

2008-09-24T04:36:00.000-07:00

During early deals on Wednesday, the US dollar reversed its early Asian session losses against its major counterparts.

Against the European currency, the US dollar gained ground after hitting a low of 1.4710 at 8:10 pm Eastern Time Tuesday. The dollar is currently trading at 1.4668 against the euro, compared to 1.4652 hit late New York yesterday.

The US dollar touched a low of 1.8589 against the British pound at 8:10 pm ET Tuesday. Thereafter, the dollar reversed its direction and is currently trading at 1.8533, compared to yesterday`s close of 1.8525.

The US currency that closed Tuesday`s North American session at 1.0865 against the Swiss franc edged down to 1.0834 during early Asian deals on Wednesday. Thereafter, the dollar-franc pair gained ground and reached 1.0882 at 12:45 am ET.

Against the Japanese yen, the US dollar slipped to 105.37 before gaining ground at 9:00 pm ET Tuesday. The dollar-yen pair that closed yesterday`s New York deals at 105.56 is now worth 105.80.

An index that measures Japanese all-industry business conditions in Q3 was down 10.2 percent compared to the previous quarter, the Ministry of Finance said today in its business survey index. That was higher than the -15.2 percent quarterly decline in Q2.

Traders in Europe await the release of the German IFO business conditions survey report for September, the Euro-Zone current account balance data for July and the Italian retail sales report for July.

The economic reports scheduled for release in the U.S. include existing home sales for August and MBA mortgage applications for September. Additionally, investors may focus on Fed Chairman Ben Bernanke`s testimony at Congress` joint economic committee.

Greenback gains versus majors following Richmond Fed`s manufacturing survey, Tuesday, September 23, 2008 10:14:05 AM

2008-09-23T08:56:00.001-07:00

Manufacturing activity in the central Atlantic region weakened further in September, according to the Richmond Fed`s latest survey. The seasonally adjusted manufacturing index decreased to -18 in September from August`s reading of -16, the report said.

The US dollar gained some ground against the rest of majors following the report. As of 10:10 am ET, the dollar was quoted at 1.4747 against the euro, 1.8533 against the pound and 1.0825 against the Swiss franc.

Greenback steady versus majors ahead of Sept. Richmond Fed manufacturing index report, Tuesday, September 23, 2008 9:59:26 AM

2008-09-23T08:55:00.002-07:00

The US Richmond Fed manufacturing index for September and the house price report for July have been slated for release at 10:00 am ET. A testimony by the Fed Chairman Ben Bernanke and U.S. Treasury Secretary Henry Paulson at the Senate Banking Committee are also expected during this time period. The US dollar held steady against other major currencies ahead of key reports and testimonies. As of 9:55 am ET, the dollar was quoted at 1.0806 against the franc, 1.4762 versus the euro and 105.71 against the yen

Greenback slips to new 7-week low versus Canadian dollar, Tuesday, September 23, 2008 9:46:11 AM

2008-09-23T08:55:00.001-07:00

The US dollar plummeted against its Canadian counterpart on Tuesday morning in New York, setting a new 7-week low of 1.0315 by 9:30 am ET. This came after the report showed that Canadian consumer price inflation accelerated to its fastest annual rate of growth in over five years in August. As of 9:40 am ET, the dollar-loonie pair was quoted at 1.0319.

According to a report released by Statistics Canada today, consumer prices in August grew 3.5% compared to the same month last year, reflecting the fastest pace of growth since March of 2003, when prices rose at an annual rate of 4.2%.

Israeli shekel sets fresh multi-month high against dollar, Tuesday, September 23, 2008 9:21:13 AM

2008-09-23T08:54:00.001-07:00

The Israeli shekel jumped to a fresh multi-month high against the US dollar on Tuesday morning in early New York trading. By 9:10 am ET, the shekel set 3.3965 against the dollar, the highest level since July 18 of this year. The dollar-shekel pair that closed yesterday`s trading at 3.4054 is currently worth 3.4030.

Traders continued to mull the Bank of Israel`s decision yesterday to leave its short-term borrowing costs unchanged. The central bank`s decision to retain its key lending rate at 4.25% was widely expected.

Euro weakens against Swiss franc, Tuesday, September 23, 2008 8:30:41 AM

2008-09-23T08:53:00.000-07:00

Extending today`s early European session downtrend, the euro dropped to 1.5920 against its Swiss counterpart by 8:20 am ET Tuesday from 1.5959 hit around 4:05 am ET. Currently, the euro-franc pair is trading at 1.5926.

South African rand falls to 5-day low against US dollar, Tuesday, September 23, 2008 7:30:38 AM

2008-09-23T08:52:00.002-07:00

Against the US dollar, the South African rand declined to a 5-day low of 8.2150 at 7:05 am ET Tuesday. If the South African currency drops further, 8.22 is seen as the next target level. The dollar-rand pair closed Monday`s New York deals at 7.9894.

The South Africa`s rand weakened after a government report showed that the nation`s retail sales dropped for a fifth month in July, falling an annual 4.6 percent, after declining a revised 1.5 percent in June.

The CPIX inflation rate rose to 13.6 percent in August from 13 percent in July. Analysts expected inflation of 13.3 percent. Prices rose 0.9 percent in the month.

Canadian dollar rises following August CPI Report, Tuesday, September 23, 2008 7:03:18 AM

2008-09-23T08:52:00.001-07:00

Following the release of the Canadian August CPI Report, the Canadian dollar rose against its major counterparts. As of now, the loonie is trading at 1.0317 against the US dollar, 0.8710 against the Aussie, 102.20 against the yen and 1.5252 against the euro.

US dollar advances to new multi-month high versus Romanian Leu, Friday, September 05, 2008 12:23:20 PM

2008-09-05T09:25:00.001-07:00

Extending yesterday`s uptrend, the US currency advanced against its Romanian counterpart in New York morning trading on Friday. At about 7:05 am ET, the pair climbed to a new multi-month high of 2.5318, compared to yesterday`s close of 2.4699. Currently, the pair is trading at 2.5226.

The Romanian industrial production rose at a pace of 5.1% annually in July, up from 4% recorded in June, the National Institute of Statistics said Friday.

Compared to the previous year, production in the mining and quarrying sector increased 8.4%, followed by a 4.8% rise in the industry processing sector output. Output in the utility sector grew 4.2%.

Month-on-month, industrial production declined 1.4% in July, compared with a 1.5% rise seen in June.

Euro ticks down to 4-1/2 month low versus Swiss franc, Friday, September 05, 2008 11:08:32 AM

2008-09-05T09:24:00.001-07:00

The European single currency slipped to a 4-1/2 month low of 1.5816 against the Swiss franc by 11:00 am ET Friday, down from today`s early European session high of 1.5922. The euro-franc pair, which closed yesterday`s North American session at 1.5889, is currently worth 1.5835.

Aussie declines further versus majors; sets fresh multi-year lows versus euro and yen, Friday, September 05, 2008 9:40:49 AM

2008-09-05T09:23:00.002-07:00

At 10 a.m. ET, the Ivey Business School will release their Canadian PMI for August. Economists expect the index to decline to 61.8 from 65.5 in July. The Canadian dollar held steady versus the other major currencies ahead of the report. As of 9:55 am ET, the loonie was quoted at 1.5225 versus the euro, 100.32 against the yen and 1.0637 versus the buck

Greenback drifts lower versus majors amid August non-farm payrolls report, Friday, September 05, 2008 8:40:22 AM

2008-09-05T09:23:00.001-07:00

The US dollar staged a sharp fall against its major opponents in the early New York session on Friday, following the release of non-farm payrolls report for August. The dollar declined to a new multi-week low of 105.55 against the yen by 8:32 am ET, compared to yesterday`s close of 107.10. The greenback also ticked down to 1.1094 against the franc, 1.4301 versus the euro and 1.7686 versus the pound during this time.

Greenback ticks lower versus euro as unemployment rises to 6.1 percent, Friday, September 05, 2008 8:40:21 AM

2008-09-05T09:22:00.001-07:00

The dollar ticked lower versus the euro after the release of government data showing that US non farm payrolls dropped 84,000 in August from a revised loss of 60,000 in July. The unemployment rate came in at 6.1 percent, its lowest level since 2003.

The buck pulled back from its 10-month high of 1.4195 versus the euro, slipping to 1.4275 minutes after the release of the jobs data.

US dollar climbs to new multi-month high against Polish zloty, Friday, September 05, 2008 7:25:29 AM

2008-09-05T09:21:00.002-07:00

Against the Polish zloty, the US dollar traded higher during early deals on Friday. At about 7:00 am ET, the dollar-zloty pair hit a new multi-month high of 2.4183, compared to 2.3835 hit late New York Thursday.

US dollar sets 2-day low against Pakistan rupee, Friday, September 05, 2008 7:12:09 AM

2008-09-05T09:21:00.001-07:00

The US dollar edged down against the Pakistan rupee during early deals on Friday. At about 2:20 am ET, the dollar-rupee pair declined to a 2-day low of 76.78, compared to 76.65 hit late New York Thursday. As of now, the pair is quoted at 76.38.

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2008-07-22T14:17:00.000-07:00

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Crude Oil Closes Modestly Higher, Monday, June 02, 2008 3:34:53 PM

2008-06-02T13:05:00.000-07:00

Oil closed another choppy session mildly higher for the day. Light sweet crude for July delivery ended the session at $127.76 per barrel, up 41 cents on the session. Crude touched as low as $125.22 in electronic movement but later rallied to as high as $129.35.

Crude has been very uncertain over the last few sessions as it moved away from a record high of $135.09 in mid-May. Crude added 73 cents in a volatile Friday session. July crude oil added nearly $15 in the month of May.

The hurricane season officially got underway on Sunday. Tropical Storm Arthur caused three crude oil ports in Mexico to close for shipping on Sunday. However, the storm dissipated to a depression on Monday without causing damage to oil regions in the Gulf of Mexico.

Traders will closely watch the weekly inventory report on Wednesday. According to last week`s data, inventories were down 8.88 million barrels, much more than expected. But the EIA said the drop was due to temporary delays in crude oil tanker off-loadings on the Gulf Coast. On the data, crude oil for July delivery prices surged as high as $133.12 after the 10:30 a.m. ET report, but gave back its gains within about 30 minutes and closed sharply lower.

Stochastics and the RSI remained neutral for July crude oil. Psychological resistance may be found at $135 as prices slipped lower after crossing that mark briefly last week. Friday`s low crossing of $124.67 could serve as support.

Activity in the U.S. manufacturing sector shrank for the fourth consecutive month in May, according to a report released by the Institute for Supply Management on Monday, although the pace of contraction slowed compared to the previous month. The ISM said its index of activity in the manufacturing sector rose to 49.6 in May from 48.6 in April, although a reading below 50 indicates a contraction in the sector. Economists had been expecting the index to edge down to about 48.5.

Also Monday morning, a Department of Commerce report showed that construction spending fell 0.4 percent in April following a revised 0.6 percent decrease in March. Economists had expected spending to fall 0.6 percent compared to the 1.1 percent decrease originally reported for the previous month.

Dollar Back Above Par Versus Loonie, Mixed Versus Other Majors, Monday, June 02, 2008 2:35:50 PM

2008-06-02T13:04:00.000-07:00

The dollar was mixed against other major currencies on Monday in New York as an Institute for Supply Management report showed that U.S. factory activity contracted in May for the fourth consecutive month.

The buck jumped back above par versus the loonie and firmed up on the sterling while hitting the skids against the broadly stronger yen.

Monday morning, the ISM said its index of activity in the manufacturing sector rose to 49.6 in May from 48.6 in April, although a reading below 50 indicates a contraction in the sector. Economists had been expecting the index to edge down to about 48.5.

The unexpected increase by the index was partly due to a rebound in production, with the production index jumping to 51.2 in May from 49.1 in April. The increase lifted the production index above the key 50 level.

The buck rallied back above parity versus the loonie for the first time since May 15, rising about a cent to 1.003. The dollar`s advance was fueled by data showing that Canadian consumer confidence fell to its lowest point since 2001. The board said its consumer confidence index dropped seven points to 85.8 in May.

The dollar also gained on the sterling, hitting a nearly 2-week high of 1.9595 in very early dealing before leveling of to trade at 1.9650 by mid-day.

The number of mortgage approved for house purchases in the UK stood at 58,000 in April, the Bank of England reported Monday. Mortgage approvals fell from March`s 63,000 and 65,000 expected by economists. Net lending secured on dwelling rose GBP6.4 billion compared with GBP6.7 billion in the prior month.

The dollar fell sharply versus the yen on Monday, dropping to 104 from 105 as risk aversion caused traders to flock to the lower-yielding Japanese currency. With the loss, the buck moved further away from last Thursday`s 3-month high near 106.

The buck was little changes in choppy dealing against the euro on Monday, bouncing back and forth between 1.55 and 1.56 for most of the day.

The Royal Bank of Scotland and NTC Economics revealed that Eurozone`s PMI for manufacturing sector fell to 50.6 in May from 50.7 in April -- its lowest level since 2005. However, the reading stood above the flash reading of 50.5.

Gold Climbs Towards $900, Monday, June 02, 2008 2:35:24 PM

2008-06-02T13:02:00.000-07:00

Gold prices closed moderately higher on Monday after topping the $900 mark earlier in the session. August-stamped gold futures ended the session at $897 an ounce, up $5.50 on the session. The metal touched as high as $901.20 in the mid-morning.

The precious metal added to its gains from Friday, when it added $9.80 on the session. The metal moved further away from a multi-week low of $873.00, reached last week. For the month of May, gold closed higher by 2.5% or $22.10 an ounce. Last week, the precious metal dropped $39.10, after climbing sharply in the previous week.

The metal dropped to its lowest close in more than two weeks on Thursday, pushed lower by a stronger dollar. The greenback was mixed against other major currencies Monday morning in New York. The buck moved higher versus the sterling while coming under a bit of pressure versus the yen. The dollar was little changed against the euro.

The ISM said its index of activity in the manufacturing sector rose to 49.6 in May from 48.6 in April, although a reading below 50 indicates a contraction in the sector. Economists had been expecting the index to edge down to about 48.5.

Also Monday morning, a Department of Commerce report showed that construction spending fell 0.4 percent in April following a revised 0.6 percent decrease in March. Economists had expected spending to fall 0.6 percent compared to the 1.1 percent decrease originally reported for the previous month.

Oil was slightly higher on Monday afternoon amid further volatile trading. Light sweet crude for July delivery moved to $127.78 per barrel, up $43 cents on the session. Crude touched as low as $125.22 in electronic movement but later rallied to as high as $129.18.

Economic Round Up -- ISM Manufacturing Data Raises Stagflation Fears, Monday, June 02, 2008 1:04:36 PM

2008-06-02T13:01:00.000-07:00

A busy week of economic news was kicked off on Monday with an ISM report showing U.S. factory activity contracted in May for the fourth consecutive month and the pace of price growth accelerated to its highest in four years.

The ISM said its index of activity in the manufacturing sector rose to 49.6 in May from 48.6 in April, although a reading below 50 indicates a contraction in the sector. Economists had been expecting the index to edge down to about 48.5.

The unexpected increase by the index was partly due to a rebound in production, with the production index jumping to 51.2 in May from 49.1 in April. The increase lifted the production index above the key 50 level.

However, concerns about stagflation were raised when the ISM said that the pace of price growth continued to accelerate in May, with the prices index jumping to 87.0 from 84.5 in the previous month.

The ISM is due to provide some additional economic data on Wednesday with the release of its report on activity in the service sector. Economists expect the index of activity in the service sector to edge down to 51.0 in May from 52.0 in April.

Also Monday morning, the Department of Commerce released its report on construction spending in the month of April, showing that construction spending decreased by a little less than economists had been anticipating.

The report showed that construction spending fell 0.4 percent in April following a revised 0.6 percent decrease in March. Economists had expected spending to fall 0.6 percent compared to the 1.1 percent decrease originally reported for the previous month.

North of the border, the Conference Board of Canada said that Canadian consumer confidence fell to its lowest point since 2001. The board said its consumer confidence index dropped seven points to 85.8 in May.

Across the Atlantic, Purchasing Managers` Index data for the manufacturing sector of various European economies dominated the scene.

Euro zone`s Purchasing Managers` Index for manufacturing sector declined to the lowest level since August 2005. The Royal Bank of Scotland and NTC Economics revealed that Eurozone`s PMI for manufacturing sector fell to 50.6 in May from 50.7 in April. However, the reading stood above the flash reading of 50.5. The May reading was the lowest since August 2005.

Meanwhile, the number of mortgage approved for house purchases in the UK stood at 58,000 in April, the Bank of England reported Monday. Mortgage approvals fell from March`s 63,000 and 65,000 expected by economists. Net lending secured on dwelling rose GBP6.4 billion compared with GBP6.7 billion in the prior month.

Paulson Says U.S. Still Committed To Strong Dollar Policy, Monday, June 02, 2008 10:59:39 AM

2008-06-02T13:00:00.000-07:00

The `very real` challenges facing the U.S. economy took center stage Monday as Treasury Secretary Henry Paulson spoke before the U.S.-UAE Business Council, reaffirming his commitment to a strong dollar policy.

`As you know, the U.S. economy is going through a rough period,` Paulson told the council during a speech in Abu Dhabi. `We are facing a trio of headwinds - a housing correction, capital markets turmoil and high and rising energy prices.`

Paulson delivered the speech at a wrap up of his four-day visit to the Persian Gulf, where he outlined U.S. efforts to deal with recent market turmoil in the housing and credit markets. One of the major sources of capital for struggling financial institutions during the credit crunch came from the oil-rich countries in the Middle East. U.S. companies raised billions in capital as Middle Eastern companies increased their investments. Paulson assured the council that the U.S. remains open for business and would welcome investments, despite some opposition in recent years from U.S. lawmakers.

`I have met with many leaders from the Middle East who ask if the United States really continues to welcome foreign investment,` Paulson said `As we seek to open new markets abroad, America will keep our markets open at home to investment from private firms and from sovereign wealth funds.`

Oil was also part of Paulson`s focus. Prices have nearly doubled in the last year, hitting a record high of $135.09 a barrel last week. One of the culprits often cited for soaring oil prices is a weak U.S. dollar, a factor that Paulson has continually dismissed. Rather, he cites supply and demand market forces as the chief reason oil has soared to these record highs.

`There are no simple or quick remedies for this, and let me be clear in stating that the Gulf region alone cannot alleviate the pressures in global oil markets,` the Treasury Secretary said. `Speculation and the depreciation of the dollar are likely only small factors behind oil price increases.`

He called on oil-producing countries to use this `historic opportunity` of sky-high oil prices to boost foreign investment.

`We are urging all oil-producing countries to open markets to foreign investment, which would support faster and more efficient growth,`` he said.

Paulson stressed that he remains committed to a strong dollar policy.

`The U.S. dollar has been the world`s reserve currency since World War II and there is a good reason for that,` he said. `The long-term health and strong underlying fundamentals of the U.S. economy will shine through and be reflected in currency values.`

Paulson remained very positive about the long-term prospects for the U.S. economy.

`Overall, I believe that the United States is on the right path to resolving market disruptions and building a stronger financial system,` he said. `Our long term prospects remain strong.`

While the Bush administration has continually stressed that it believes in a strong dollar policy, the value of the dollar has declined for much of Bush`s presidency, hitting record lows against the euro in April.

Construction Spending Falls Less Than Expected In April, Monday, June 02, 2008 10:54:15 AM

2008-06-02T12:59:00.000-07:00

Monday morning, the Department of Commerce released its report on construction spending in the month of April, showing that construction spending decreased by a little less than economists had been anticipating.

The report showed that construction spending fell 0.4 percent in April following a revised 0.6 percent decrease in March. Economists had expected spending to fall 0.6 percent compared to the 1.1 percent decrease originally reported for the previous month.

With the relatively modest monthly decrease, construction spending in April was down 3.9 percent compared to the same month last year.

The monthly decrease was partly due to a 0.5 percent drop in spending on private construction, which came as a 2.3 percent decrease in spending on residential construction more than offset a 1.6 percent increase in spending on non-residential construction.

Spending on public construction also saw some weakness in April, edging down 0.3 percent compared to the previous month. Spending on educational construction fell 0.3 percent, while spending on highway construction edged up 0.1 percent.

The Commerce Department added that construction spending totaled $331.6 billion in the first 4 months of the year, 2.8 percent below the $341.2 billion for the same period in 2007.

ISM Manufacturing Index Increases But Continues To Indicate Contraction, Monday, June 02, 2008 10:36:34 AM

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Activity in the U.S. manufacturing sector shrank for the fourth consecutive month in May, according to a report released by the Institute for Supply Management on Monday, although the pace of contraction slowed compared to the previous month.

The ISM said its index of activity in the manufacturing sector rose to 49.6 in May from 48.6 in April, although a reading below 50 indicates a contraction in the sector. Economists had been expecting the index to edge down to about 48.5.

The unexpected increase by the index was partly due to a rebound in production, with the production index jumping to 51.2 in May from 49.1 in April. The increase lifted the production index above the key 50 level.

Strength in exports also contributed to the slowdown in the pace of contraction in the sector. The exports index rose to 59.5 in May from 57.5 in April.

`Exports continue strong due to the weak dollar,` said Norbert J. Ore, C.P.M., chair of the ISM Manufacturing Business Survey Committee. `Without the weak dollar the story would be much more negative in manufacturing.`

New orders also saw some improvement compared to the previous month, although the new orders index remained below 50. The index rose to 49.7 in May from 46.5 in April.

At the same time, the report showed continued weakness in employment, as the employment index was nearly unchanged at 45.5 in May compared to 45.4 in the previous month.

Additionally, the ISM said that the pace of price growth continued to accelerate in May, with the prices index jumping to 87.0 from 84.5 in the previous month.

Ore noted, `Manufacturers find themselves caught between rising costs and weakening demand in many industries.`

The ISM is due to provide some additional economic data on Wednesday with the release of its report on activity in the service sector. Economists expect the index of activity in the service sector to edge down to 51.0 in May from 52.0 in April.

Dollar Mixed Versus Other Majors Ahead of Key Manufacturing Data, Monday, June 02, 2008 7:11:09 AM

2008-06-02T12:57:00.000-07:00

The dollar was mixed against other major currencies Monday morning in New York, racing higher versus the sterling while coming under a bit of pressure versus the yen.

The Institute for Supply Management issues its monthly report on manufacturing activity at 10 a.m. ET. Economists expect the ISM to tick lower to a reading of 48.5, down from April`s level of 48.6.

Market players received a prelude to the ISM report on Friday when Chicago PMI came in better-than-expected at 49.1 in May from a reading of 48.3 in April, beating expectations that it would rise only to 48.5. The gauge of mid-western manufacturing stayed below growth levels for the fourth consecutive month, but has crept closer to the 50-level for the last three months.

The dollar was little changed against the euro Monday morning in New York, moving in a narrow range near 1.5550. The dollar saw strong gains last week against the euro amid speculation the European Central Bank would soon cut interest rates to combat economic weakness.

According to NTC Economics, the German purchasing managers` index for manufacturing remained unchanged at 53.6 in May. Economists had expected a slight fall to 53.5, in line with the preliminary estimate in May.

On the flip side, overall euro zone PMI manufacturing figure fell to a record low 50.6 following the previous month`s 50.7 reading. Still, the May reading came in slightly better than consensus forecast of 50.5.

The greenback raced higher versus the sterling Monday morning, rising more than a cent to hit a 2-week high of 1.96.

The number of mortgage approvals for house purchases in the UK stood at 58,000 in April, the Bank of England reported Monday. Mortgage approvals fell from March`s 63,000 and 65,000 expected by economists. Net lending secured on dwelling rose GBP6.4 billion compared with GBP6.7 billion in the prior month.

The dollar lost a bit of ground Monday morning versus the yen as US stock futures tumbled, fueling risk aversion. The greenback slipped to 104.65 in very early dealing, but was stable approaching mid-morning.

According to official data released Friday, the Japanese unemployment rate grew slightly more than expected to 4% in April, up from the 3.8% rate in March.

US stocks facing headwinds Monday morning ahead of ISM manufacturing report, Monday, June 02, 2008 6:37:26 AM

2008-06-02T12:56:00.000-07:00

US stocks were poised for a rough open Monday morning in New York ahead of a busy week on the economic front, including today`s ISM report on manufacturing activity.

As of 6:15 am ET, the S&P Futures were down 7 points, the NASDAQ Futures were down 8 points, and the Dow Futures were down 69 points.

The Institute for Supply Management issues its monthly report on manufacturing activity at 10 a.m. ET. Economists expect the ISM to tick lower to a reading of 48.5, down from April`s level of 48.6.

Later in the week on Friday, nonfarm payrolls are expected to show their fifth straight decline, with a loss of 60,000 jobs in May, following April`s decline of 20,000.

The price of oil slipped back to $126 Monday morning amid speculation that US demand would continue to weaken. The dollar edged higher versus the euro in early dealing, rising to 1.5540.

In corporate news, the Financial Times reported that Cerberus Capital Management has sold `significantly` more than half its equity in Chrysler and GMAC to about 90 investors.

New York State Senator Hillary Rodham Clinton soundly won Sunday`s Puerto Rican Democratic Primary, taking 68 percent of the vote on the American commonwealth island. Still, the win may be too little, too late for Clinton. Senator Barack Obama is only 45.5 delegates short of cinching the nomination.

Swiss Franc Recovers From Lows Against Dollar And Pound, Friday, May 30, 2008 3:31:35 PM

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The Swiss franc rose versus its major counterparts on Friday in New York, pulling up from early lows versus the sterling and the greenback.

The Swiss franc rebounded from an 11-day low against the dollar on Friday. After easing to 1.0526 by 3:30 am ET, the franc rose to 1.0424 in the afternoon.

Investors digested a US consumer sentiment index for May being unexpectedly raised upward and a report showing personal income and spending rose as expected in April.

Against the euro, the franc climbed away from Thursday`s 9-day low on Friday. The franc advanced to 1.6206 just before 3:00 pm ET, up from 1.6288 in the early morning.

Traders considered two reports showing Italian consumer prices rose more than expected in May.

Versus the pound on Friday, the franc recovered from a 3 1/2-week low. After slumping to 2.0783 around 3:30 am ET, the franc rallied to 2.0639 in the mid-afternoon.

Investors mulled the Swiss May KOF leading index falling in line with expectations.

Loonie Dips Versus Major Counterparts, Friday, May 30, 2008 2:36:12 PM

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The loonie slid against the euro and greenback on Friday in New York. The slip came as traders weighed a report showing the Canadian economy contracted unexpectedly during the first-quarter of 2008.

The report showed that Canadian GDP edged down 0.1 percent in the first quarter after a 0.2 percent increase in the fourth quarter. GDP fell by 0.2 percent in March following a 0.3 decrease in February and a 0.6 percent increase in January.

This was the first contraction since the second quarter of 2003. The weakness was partly due to widespread cutbacks in manufacturing.

The Canadian dollar fell to an 11-day low versus the US dollar on Friday. The loonie dropped to .9978 by 8:30 am ET, before paring its gains later in the day reaching .9934 in the afternoon.

Investors pondered a US consumer sentiment index for May being unexpectedly raised upward and a report showing personal income and spending rose as expected in April.

The loonie retreated from Thursday`s 2 1/2-month high against the euro on Friday. The Canadian dollar declined to 1.5489 just before Noon ET, down from 1.5307 in the early morning.

Traders digested two reports showing Italian consumer prices rose more than expected in May.

Dollar Mixed Versus Other Majors As Data Reveals Consumer Distress, Friday, May 30, 2008 2:14:35 PM

2008-06-01T11:15:00.000-07:00

The dollar was mixed in choppy dealing versus a basket of majors currencies on Friday, ending a positive week versus the euro by giving back some its gains. The dollar came under a bit of pressure versus the sterling, but was able to advance versus its Canadian counterpart.

Traders sifted through a mixed bag of economic data, highlighted by the release of a pair of reports on the struggling US consumer.

The Department of Commerce released its closely watched report on personal income and spending in the month of April, showing modest increases in both income and spending that came in line with economists` expectations.

The report showed that personal income edged up 0.2 percent in April following a revised 0.4 percent increase in March.

Meanwhile, US consumer sentiment fell to a 28-year low in the month of May, but was unexpectedly revised upwards from a previous reading, according to a report released by Reuters and the University of Michigan.

The consumer sentiment index for May was revised up to 59.8 from the previously reported reading of 59.5. The upward revision came as a surprise to economists, who had expected the index to be unrevised.

The dollar fell from a 2-week high against the euro, ending a 3-day winning streak after higher-than-expected Eurozone inflation numbers and hawkish rhetoric from an ECB official fueled speculation that policy makers may stand pat on interest rates for at least another month. The buck dropped to 1.5560 versus the euro, down a penny from its overnight high.

Euro zone annual inflation grew 3.6% in May, according to preliminary estimates from Eurostat. Economists had expected a reading of 3.5%, up from April`s 3.3% growth rate.

The buck extending its run of uncertain dealing versus the sterling on Friday, rising to 1.97 before falling below 1.98 by mid-afternoon.

The dollar held steady versus the yen, staying near a three-month high of 105.87 from the previous session. The dollar challenged that mark in morning action, but leveled off to 105.40 by mid-day.

The dollar rallied versus the loonie on Friday, but failed to rise above parity before falling back. After data showed that Canada`s economy unexpectedly contracted 0.1 percent in the first quarter, the dollar surged to .9980 but from there pared its gains to trade near .9930 for the rest of the day.

Fed`s Rosengren Says Weak Housing Market Complicates Economic Outlook, Friday, May 30, 2008 1:40:32 PM

2008-06-01T11:14:00.000-07:00

The `continued downside risk` of falling home prices was the focus of a speech by Boston Federal Reserve President Eric Rosengren on Friday. Rosengren noted that residential investment would likely decline this quarter, making it the tenth consecutive quarter of decline and clouding the economic outlook for the U.S. economy.

`This has been an unusually long period of continuous decline in the housing sector, and coupled with falling housing prices nationally, has complicated predictions of what will happen in the economy going forward,` Rosengren told the New England Economic Partnership.

He linked the length of decline of housing prices to the economic outlook. Rosengren praised `aggressive` monetary and fiscal policy actions by the Federal Reserve and other agencies as keeping the fallout from the financial turmoil `relatively benign.`

`These policies will likely result in some pick up in economic activity in the second half of this year, which should help to stabilize the housing market,` the Boston Fed President predicted.

Continued economic turmoil, especially combined with a rising unemployment rate could result in further deterioration of the housing market, Rosengren warned.

`Should the economy worsen and suffer a period of significant job losses, the housing problem could become much more severe,` he noted.

He added that, based on past events, the high foreclosure rate that the markets are currently weathering `may be longer than some are anticipating.`

Based on research by economists at the Boston Federal Reserve Branch, Rosengren said, `Less than 10 percent of…homeowners with negative equity will default.` However, this number could increase if a myriad of factors, including declining home prices, increased unemployment, and a propensity towards defaulting on home mortgages.

`It is clear that servicers were not set up for the spate of elevated foreclosures we have already experienced, and further increases in foreclosures would certainly test the capacity of servicers to have sufficient staff with the expertise to make loan modification determinations,` Rosengren said, referring to the challenges facing those working towards loan modifications.

He added, `Nonetheless, I am hopeful that the many mortgage forums that are being organized around the country to try to get servicers and borrowers together to work with problem loans will help some borrowers.`

Economic Round Up -- Consumer Spending Slows, Sentiment At 28-Year Low, Friday, May 30, 2008 12:38:46 PM

2008-06-01T11:12:00.000-07:00

Friday was a hectic day on the economic front, featuring key reports from both sides of the Atlantic, including a pair of readings on the health of the US consumer.

Before the opening bell, the Department of Commerce released its closely watched report on personal income and spending in the month of April, showing modest increases in both income and spending that came in line with economists` expectations.

The report showed that personal income edged up 0.2 percent in April following a revised 0.4 percent increase in March. Economists had expected income to increase by 0.2 percent compared to the 0.3 percent increase originally reported for the previous month. Economist pointed out that some of the spending increases came as consumers cashed stimulus checks from the government.

The consumer remained in focus with the release of data showing US consumer sentiment in the month of May was unexpectedly revised upwards from a previous reading, according to a report released by Reuters and the University of Michigan. Still, optimism was tempered as analysts pointed out the consumer sentiment index was still at a 28-year low.

The report showed that the Reuters/University of Michigan consumer sentiment index for May was revised up to 59.8 from the previously reported reading of 59.5. The upward revision came as a surprise to economists, who had expected the index to be unrevised.

In a prelude to Monday`s ISM Manufacturing data, the Chicago PMI came in better-than-expected at 49.1 in May from a reading of 48.3 in April, beating expectations that it would rise only to 48.5. The gauge of mid-western manufacturing stayed below growth levels for the fourth consecutive month, but has crept closer to the 50-level for the last three months.

Friday`s news from the Eurozone did little to provide hints about the direction of the next European Central Bank rate decision. The ECB next meets in June, and analysts are divided as to whether the central bank will cut interest rates in the face of a slowing economy.

Official data revealed German retail sales slipped last month, suggesting that economic weakness was is taking hold in Europe. However, higher than expected inflation numbers and hawkish rhetoric from an ECB official fueled speculation that policy makers may stand pat on interest rates for at least another month.

The Federal Statistics Office reported that German retail sales fell 1.7% in April month-over-month. Economists had expected a 0.6% rise following the previous month`s 2.2% decline.

Meanwhile, Euro zone annual inflation grew 3.6% in May, according to preliminary estimates from Eurostat. Economists had expected a reading of 3.5%, up from April`s 3.3% growth rate.

ECB council member Axel Weber ramped up his inflation-fighting rhetoric, saying that changing the ECB`s definition of price stability would risk the bank`s credibility at a time when fighting inflation is of the essence.

Consumer Sentiment Index For May Revised Up To 59.8, Friday, May 30, 2008 11:06:19 AM

2008-06-01T11:11:00.000-07:00

Consumer sentiment in the month of May was unexpectedly revised upwards from a previous reading, according to a report released by Reuters and the University of Michigan on Friday, although the consumer sentiment index was still at a nearly 28-year low.

The report showed that the Reuters/University of Michigan consumer sentiment index for May was revised up to 59.8 from the previously reported reading of 59.5. The upward revision came as a surprise to economists, who had expected the index to be unrevised.

Despite the upward revision, however, the index remained well below the final April reading of 62.6 and was the lowest reading since hitting 58.7 in June of 1980.

Additionally, the report showed that the consumer expectations index fell to 51.5 in May from 53.3 in April, while the current index slipped to 73.3 from 77.0 in the previous month.

Reuters and the University of Michigan also said that the one-year inflation expectations index jumped to 5.2 percent in May from 4.8 percent in April. With the increase, the index rose to its highest level since February of 1982.

Personal Income And Spending Increase In Line With Estimates, Friday, May 30, 2008 9:04:15 AM

2008-06-01T11:10:00.000-07:00

Friday morning, the Department of Commerce released its report on personal income and spending in the month of April, showing modest increases in both income and spending that came in line with economists` expectations.

The report showed that personal income edged up 0.2 percent in April following a revised 0.4 percent increase in March. Economists had expected income to increase by 0.2 percent compared to the 0.3 percent increase originally reported for the previous month.

The modest increase in personal income came even though private wage and salary disbursements decreased by $18.2 billion in April, in contrast to an increase of $26.9 billion in March.

The Commerce Department added that personal spending rose 0.2 percent in April after increasing by 0.4 percent in the previous month. The increase in personal spending also came in line with economist estimates of 0.2 percent growth.

With income and spending increasing at the same pace, personal saving as a percentage of disposable personal income was 0.7 percent in April, unchanged from March.

Additionally, the Commerce Department said its closely watched reading of core consumer prices, which excludes food and energy prices, edged up 0.1 percent in April compared to a 0.2 percent increase in March.

On an annual basis, core consumer prices were up 2.1 percent in April, unchanged from the annual rate of growth reported for the previous month.

While the annual rate of core consumer price growth is slightly above the Federal Reserve`s target of about 2.0 percent growth, the relatively tame inflation data may offset some of the concerns about the impact of rising commodity prices.

The modest increases in personal income and spending are also likely to add to recent indications that the economy will be able to weather the economic slowdown without slipping into a recession.

On Thursday, a separate Commerce Department report showed that first quarter gross domestic product growth was revised up to 0.9 percent from the 0.6 percent originally reported. The upward revision came in line with economist estimates.

With the upward revision, the GDP growth in the first quarter marks a modest acceleration from the 0.6 percent growth seen in the fourth quarter.

The relatively modest economic growth that was seen in the first quarter reflected positive contributions from consumer spending on services, exports of goods and services, federal government spending, and private inventory investment.

The growth was partly offset by negative contributions from residential fixed investment and consumer spending on durable goods.

The Commerce Department also noted that the small acceleration in GDP growth compared to the fourth quarter primarily reflected an upturn in inventory investment that was partly offset by a deceleration in consumer spending.

Dollar on Pause Versus Majors ahead of Consumer Spending, Chicago PMI, Friday, May 30, 2008 7:01:35 AM

2008-06-01T11:08:00.000-07:00

The dollar leveled off against the euro and yen while extending a run of choppy trading versus the sterling as traders looked ahead to a slew of economic results from the US, including a key reading on personal consumption.

Traders will be treated to the Commerce Department`s report on personal income and spending for the latest on the mindset of the consumer. Other economic reports to consider include the Chicago PMI manufacturing survey and a revised reading on consumer sentiment from the University of Michigan.

The dollar pulled back a bit after hitting a 2-week high against the euro overnight, slipping to 1.5517 from 1.5461. The dollar has spiked higher against the euro this week amid speculation that creeping economic weakness in the eurozone will lead to a rate cut from the European Central Bank.

On Friday, the Federal Statistics Office reported that German retail sales fell 1.7% in April month-over-month. Economists had expected a 0.6% rise following the previous month`s 2.2% decline.

Euro zone annual inflation grew 3.6% in May, according to preliminary estimates from Eurostat. Economists had expected a reading of 3.5%, up from April`s 3.3% growth rate.

The dollar stretched to a fresh 3-month high of 105.85 versus the yen overnight, but eased slightly from there to trade at 105.40 approaching mid-morning. Japanese housing starts declined 8.7% year-on-year in April to 97,930 units, official data revealed Friday. This is smaller than the 15.6% fall in March. Economists were looking for an 11.8% slump in April housing starts.

Orders with Japan`s big 50 contractors dropped 8.4% year-on-year in April, while economists had forecasted a 16% fall. In March, construction orders were down 6.4%.

The dollar was little changed in choppy dealing against the sterling Friday morning, staying in a range between 1.97 and 1.98 through 7 am ET. The dollar has been moving roughly sideways versus the sterling this week, stabilizing from a multi-week low of 1.9850.

The dollar recovered most of its losses from the previous session versus the loonie, rising back to .99 from yesterday`s low near .9820. Even with the price of oil pulling back sharply from its record highs this week, the dollar has been unable to break above the parity line versus its Canadian counterpart.

US Stocks Look To Extend Gains Friday Morning, Friday, May 30, 2008 6:43:25 AM

2008-06-01T11:06:00.000-07:00

US stocks were looking to end a relatively positive week on a high note Friday morning after tech bellwether Dell turned in a better-than expected first quarter result and the price of oil dropped below $126.

As of 6:20 am ET, the S&P Futures were up 2 points, the Nasdaq Futures were up 8 points, and the Dow Futures were up 25 points. Stocks rose on Thursday, bolstered by a more than $4 drop in crude prices.

On the economic front, investors will look to the Commerce Department`s report on personal income and spending for the latest on the mindset of the consumer. Other economic reports to consider include the Chicago PMI manufacturing survey and a revised reading on consumer sentiment from the University of Michigan.

Late Thursday, Wall Street Journal reported that talks between the Chief Executive Officer of United Airlines parent UAL Corp. (UAUA) Glenn Tilton and the US Airways Group Inc. (LCC) Chief Executive Douglas Parker have stalled for now. Both the chief executives were reportedly meeting on Thursday afternoon to discuss some of the issues holding up the merger deal and to share information on concerns raised by UAL directors at their last board meeting.

PC maker DELL: News, Chart, Quote Inc. (DELL) said Thursday after the markets closed that its first quarter earnings rose 4% from last year, helped by better than industry growth of commercial and consumer products and services as well as lower operating expense as a percentage of revenue and higher investment and other income. The company`s quarterly earnings per share also came in above analysts` expectations as did its quarterly revenue.

The company reported net income for the first quarter of $784 million or $0.38 per share, compared to $756 million or $0.34 per share for the year-ago quarter. Analysts expected the company to earn $0.34 per share for the first quarter.

Global stocks were mostly positive Friday. The FTSE of the UK was up 18 points, the DAX of Germany was up 42 points, and the CAC of France was up 31 points.

In Asia, the Hang Seng of Hong Kong rose 149 points and Tokyo`s Nikkei added 214 points.

Dollar Rebounds Versus Most Majors After Leading Indicators Edge Higher, Monday, May 19, 2008 10:51:14 AM

2008-05-19T10:33:00.000-07:00

The dollar stormed back to the upside versus most majors Monday morning after the Conference Board released its report on leading economic indicators in the month of April, showing that its leading indicators index experienced a modest increase for the second consecutive month.

The report showed that the leading index edged up 0.1 percent in April, matching the increase that was seen in March. Economists had been expecting the index to come in unchanged.

The dollar rebounded from a two-week low against the euro, rising more than a penny to 1.55. The dollar jumped to 104.50 versus the yen and to 1.9470 against the euro.

The buck failed to gain much traction against the surging Canadian loonie, staying near this morning`s 2-month low of .99. The loonie has rallied lately as the price oil has risen to new record highs above $127 a barrel.

Leading Indicators Index Shows Second Consecutive Monthly Increase, Monday, May 19, 2008 10:46:41 AM

2008-05-19T10:32:00.000-07:00

Monday morning, the Conference Board released its report on leading economic indicators in the month of April, showing that its leading indicators index experienced a modest increase for the second consecutive month.

The report showed that the leading index edged up 0.1 percent in April, matching the increase that was seen in March. Economists had been expecting the index to come in unchanged.

`These data certainly reflect a weak economy but not one in recession,` said Ken Goldstein, Labor Economist at The Conference Board. `Moreover, the small increases in the Leading Index in both March and again in April could be a signal that the economy may not weaken further.`

The modest increase by the index came as positive contributions from the interest rate spread and housing permits more than offset sharp declines in average weekly hours and consumer expectations.

The Conference Board noted that the weaknesses among the leading indicators have become somewhat less widespread in the last two months.

The report also showed that the coincident index was unchanged in April, while the lagging index edged up 0.1 percent.

The continued lack of growth by the coincident index comes as gains in personal income less transfer payments and real manufacturing and trade sales were offset by declines in industrial production and employment.

At the same time, the modest increase by the lagging index reflected positive contributions from commercial and industrial loans outstanding, the change in CPI for services, and the ratio of consumer installment credit to personal income.

While the Conference Board`s leading indicators index is largely regarded as old news because much of the data contained in the report has already been released, the second consecutive monthly increase may still generate some optimism about the strength of the economy.

Dollar steadies after losing ground to majors, Monday, May 19, 2008 7:11:52 AM

2008-05-19T04:53:00.001-07:00

The dollar hit the skids against other major currencies in early action Monday morning in New York, but was able to pare its losses despite lingering concerns about the health of the US economy.

With little economic data set for release on Monday, market players will be looking ahead to this week`s FOMC minutes from the April monetary policy meeting, April PPI, home price index and existing homes sales data.

At 10 am ET, April`s leading indicators will be released, which are expected to slip 0.1% following March`s 0.1% rise.

The dollar was little changed in choppy dealing against the euro approaching 7 am ET Monday. The buck dropped to a 2 1/2 week low of 1.5630 before fighting back to 1.5575. European Central Bank President Jean Claude Trichet told the BBC that, while the current situation was challeging, high inflation `will not last forever.`

The buck came under modest pressure in early dealing against the yen, easing to 103.65 before bouncing back to 104.10. The Bank of Japan kicked off its regular two-day monetary policy meeting on Monday, headlining Monday`s economic news in Asia. The BoJ is scheduled to announce its interest rate decision sometime Tuesday morning, widely expected to keep rates at 0.50 percent.

Traders also considered data showing that Japan`s nationwide department store sales fell at a faster pace of 3.4% year-on-year in April, compared to a decrease of 1.2% in March.

The greenback dropped to a 2-week low of 1.9623 before reversing its early losses to trade at 1.9560 approaching mid-morning. Asking prices for houses in Great Britain increased 1.2 percent in May from the month before, according to a report issued Monday by RightMove.

The group warned that the figures do not indicate a return to a positive housing market, pointing out that the national averages were pushed higher by `discretionary spring sellers` of large properties in the southeast section of England, where prices rose 4.2 percent in May.

The dollar stayed on the defensive against the loonie in subdued dealing Monday morning, slipping to a 2-month low of .9924. Markets in Canada are closed for Victoria Day.

US stocks looking for direction Monday morning, Monday, May 19, 2008 6:34:49 AM

2008-05-19T04:52:00.000-07:00

US stocks were poised for a lackluster open Monday morning as Microsoft made new overtures to Yahoo and oil prices stayed near record highs. With little economic data set for release on Monday, market players will be looking ahead to this week`s FOMC minutes from the April monetary policy meeting, April PPI, home price index and existing homes sales data.

Stocks were little changed on Friday as sentiment dampened due to high oil prices and a report showing that US consumer sentiment plunged to a 28 year low in May.

Despite having walked away from acquisition talks with Yahoo! (YHOO), Microsoft (MSFT) has been carrying on low-profile discussions on a relationship between the two internet giants.

Microsoft issued a statement Sunday saying it `is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo!`

Yahoo`s refusal to accept Microsoft`s un-written $33 dollar-per-share offer for the company led to a move by activist investor and Yahoo stakeholder Carl Icahn to launch a hostile bid to replace the company`s CEO and board of directors.

In other merger news, Manitowoc Co., Inc. (MTW) on Monday announced a higher offer of about $2.4 billion for UK-based kitchen equipment firm Enodis Plc (ENO.L), as it strives to expand its share in the ice-machine market.

The dollar was on the defensive versus other majors Monday morning, slipping to a 2 1/2 week low of 1.5630. At 10 am ET, April`s leading indicators will be released, which are expected to slip 0.1% following March`s 0.1% rise.

The price of light sweet crude was down $0.19 at $126.10, staying near its record highs despite comments from a Saudi oil official indicating the nation has boosted oil output by 300,000 barrels per day to meet demand.

OFHEO`s Lockhart Promotes Increased Regulatory Power, Friday, May 16, 2008 4:01:26 PM

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The Office of Federal Housing Enterprise Oversight`s managing director James Lockhart discussed the lessons that housing GSEs Fannie Mae (FNM) and Freddie Mac (FRE) `must learn` from the current market turmoil, expressing his support for legislation what would allow for the OFHEO to increase its regulatory powers.

Lockhart spoke Friday at the Chicago Federal Reserve`s 44th annual Banking Structure Conference.

Fannie Mae and Freddie Mac have performed their role of supporting the loan market `reasonably well` throughout the financial turmoil, Lockhart said. However, he added that the GSEs have `many` lessons to learn, some which admittedly `should have been learned already.` Specifically, Lockhart acknowledged that Fannie and Freddie ignored the lesson learned from previous bubbles, `what goes up to far goes down too far.`

`The lack of transparency all along the long chain of mortgage financing is, in retrospect, mystifying,` Lockhart said.

He added that `complicated, risky mortgages` shouldn`t be marketed to people who don`t understand them, a lesson that `unfortunately` was not learned in the mortgage industry.

Fannie and Freddie `have continued to be a point of vulnerability for the financial system` due to the fact that they are highly leveraged compared to their risks, Lockhart noted.

`Such leverage has also limited the ability of Fannie Mae and Freddie Mac to fulfill their mission of supporting secondary mortgage market stability and liquidity in good times and bad,` he said.

The OFHEO has taken a series of actions in order to better balance the ability of Fannie and Freddie to be a lender of last resort, and to limit the risk that these GSEs pose to both taxpayers and the financial system, Lockhart said. In March, the OFHEO removed regulatory caps on the two GSEs, and a few weeks later it lowered their minimum capital requirements by 10 percent. Last week, the OFHEO lifted its consent order with Fannie Mae, although it has not yet done so for Freddie Mac.

Fannie and Freddie`s `very high leverage made striking that balance quite a challenge,` Lockhart said. However, he noted that the actions related to the two GSEs along with the rescue of Bear Stearns and the Fed`s use of the term auction facility other liquidity aids `had the desired effect of quickly reducing MBS-to-Treasury spreads,` although he added that they are still higher than market spreads prior to the crisis by 100 basis points.

Lockhart was critical of the risk-based capital requirement that Fannie and Freddie are required to have, saying it is `pretty much a joke at this point,` because it is set by law and is therefore inflexible.

He cautioned that a recent effort by Fannie and Freddie to alleviate recent losses by tightening their underwriting standards `could tend to be pro-cyclical and exacerbate the current weakness in housing and mortgage markets, if taken to extremes.`

Lockhart concluded his remarks by voicing his support for current legislation in Congress that would expand the OFHEO`s regulatory powers.

`The legislation that is working its way through Congress would give the new GSE regulator broader powers and increased flexibility to ensure the safety and soundness of Fannie Mae and Freddie Mac and to apply the lessons I have enumerated,` Lockhart said, `Especially efforts to encourage the Enterprises` mission to support mortgage and housing markets throughout the credit cycle.`

The Senate is scheduled to vote on the legislation on Tuesday.

Crude Oil Closes Above $126, Friday, May 16, 2008 3:43:36 PM

2008-05-18T14:09:00.001-07:00

Crude oil closed above the $126 a barrel mark on Friday and again added to its record levels. Light sweet crude closed at $126.29, up $2.17 on the day. Oil touched a record high of $127.82 in the early going before easing back slightly. On Friday, Goldman Sachs boosted its forecast to $141 a barrel in the second half of this year.

Amid choppy trading, oil closed the week up by 33 cents after adding more than $10 last week. Crude closed modestly lower on Thursday after hitting a weekly low earlier in the session and fell on Wednesday. Trading took place earlier in the week as the Energy Information Administration revealed that crude oil inventories increased by 176,000 barrels to 325.8 million barrels. Analyst predicted an increase of about 2 million barrels.

Stochastics and the RSI indicated neutral status the June contract, which expires on Tuesday. The $130 may serve as psychological resistance if the rally continues. If June turns lower, the $120.75 mark could be a resistance point.

In economic news, Department of Commerce data showed that housing starts jumped 8.2 percent to an annual rate of 1.032 million units in April from the revised March rate of 954,000 units. Economists had expected starts to edge down to 940,000 units from the 947,000 unit rate originally reported for the previous months.

Traders also considered the release of a report showing that US consumer sentiment dropped to its lowest since 1980. The University of Michigan/Reuters consumer sentiment number came in lower than expected at 59.5, compared 62.6 in April.

Dismal Consumer Confidence Reading Weighs On Dollar, Friday, May 16, 2008 2:59:10 PM

2008-05-18T14:07:00.000-07:00

The dollar hit the skids against other major currencies on Friday as the release of a report showing that US consumer sentiment dropped to its lowest since 1980 overshadowed a relatively encouraging reading on the housing situation.

The Reuters/University of Michigan Surveys of Consumers said its preliminary index of confidence fell to 59.5 in May, down from 62.6 in April. This was well below economists` median expectation of a reading of 62.0.

The dreadful consumer confidence reading overshadowed data showing that housing starts unexpectedly showed a significant increase in the month of April, according to a report released by the Department of Commerce. The data is likely to offset some of the recent pessimism about the outlook for the housing market.

The report showed that housing starts jumped 8.2 percent to an annual rate of 1.032 million units in April from the revised March rate of 954,000 units. Economists had expected starts to edge down to 940,000 units from the 947,000 unit rate originally reported for the previous months.

The greenback fell to a 2-week low against the euro, dropping to 1.5601 before levelling off aver the course of the afternoon. With the retreat, the dollar moved further away from a 2-month high of 1.5283.

The Eurostat announced that Euro zone trade balance with the rest of the world showed a deficit of EUR2.3 billion in March. In February, the trade balance recorded a surplus of EUR0.8 billion. Economists had expected the trade surplus to increase to EUR2.5 billion in March.

The buck dropped sharply against the yen in Friday morning, but pared a good portion of its losses by mid-afternoon. The buck slipped to 103.50 before bouncing back to 104.15. Even with the loss, the dollar gained a bit of ground this week.

Japan`s economy grew 0.8 % in the first quarter over the previous quarter on strong exports. That was up from the 0.6% increase in the previous quarter, and it beat analyst expectations that called for a 0.7% quarterly increase. On an annual basis, GDP was up 3.3%.

The dollar was also on the back foot against the sterling, slipping to 1.96 from an early level near 1.9450. The dollar has eased since hitting a multi-month high of 1.9362.

The greenback snapped back from a 9-week low of .9942 versus the loonie, rebounding back above parity by 3 pm ET. The buck came under pressure in late morning dealing after the price of oil jumped to a new record above $127.

Gold Soars Towards $900 An Ounce, Friday, May 16, 2008 2:41:16 PM

2008-05-18T14:05:00.000-07:00

The price of gold surged higher for the second straight session and moved to its highest level in more than three weeks. June gold closed at $899.90, up $19.90 for the session. The precious metal touched as high as $905.60 in mid-day trading.

Gold closed the volatile week up $14.10 an ounce. The metal added to its gains from Thursday, when it added $13.50 on the session. Prices had dropped to a 12-day low on Wednesday and closed down $3.10 on the day. Bullion plunged by $20.90 on Tuesday. Last week, the metal added $27.80 an ounce after seeing weakness in the previous week.

Stochastics and the RSI continued to indicate neutral status for June gold. The next upward target is $909.30, the high crossing of April 24. The next downward target is $858.70, the low crossing of May 5.

In economic news, housing starts unexpectedly showed a significant increase in the month of April, according to a report released by the Department of Commerce on Friday, with the data likely to offset some of the recent pessimism about the outlook for the housing market. The report showed that housing starts jumped 8.2 percent to an annual rate of 1.032 million units in April from the revised March rate of 954,000 units. Economists had expected starts to edge down to 940,000 units from the 947,000 unit rate originally reported for the previous months.

Traders also considered the release of a report showing that US consumer sentiment dropped to its lowest since 1980. The University of Michigan/Reuters consumer sentiment number came in lower than expected at 59.5, compared 62.6 in April.

Also impacting gold`s hedge value was the rising cost of crude oil, which soared past the $127 mark and again extended its record high.

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

2007-08-29T14:31:00.002-07:00

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

2007-08-29T14:31:00.001-07:00

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

2007-08-29T14:30:00.001-07:00

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

2007-08-29T14:29:00.001-07:00

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

2007-08-29T14:28:00.001-07:00

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

2007-08-29T14:27:00.000-07:00

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

2007-08-29T14:26:00.000-07:00

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

2007-08-29T14:25:00.000-07:00

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

2007-08-29T02:34:00.002-07:00

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

2007-08-29T02:34:00.001-07:00

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.

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

2007-08-16T04:44:00.000-07:00

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

2007-08-16T04:42:00.000-07:00

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.

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

2007-08-15T03:12:00.000-07:00

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

2007-08-15T03:11:00.000-07:00

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.`

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

2007-08-13T14:48:00.000-07:00

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

2007-08-13T14:46:00.000-07:00

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

2007-08-13T14:45:00.001-07:00

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

2007-08-13T14:43:00.000-07:00

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.

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

2007-08-09T14:23:00.000-07:00

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

2007-08-09T14:22:00.000-07:00

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

2007-08-09T14:19:00.000-07:00

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

2007-08-09T14:18:00.002-07:00

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

2007-08-09T14:18:00.001-07:00

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

2007-08-09T14:17:00.000-07:00

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

2007-08-09T14:16:00.000-07:00

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.

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

2007-08-08T16:28:00.000-07:00

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

2007-08-08T16:27:00.000-07:00

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.