Archive For "January, 2010"

NEW YORK (MarketWatch) — Barclays Capital revised its forecast for the dollar versus the euro for the next six months, saying the greenback has appreciated more quickly than expected due to “several unexpected developments such as China tightening and a faster-than-expected deterioration in the Greece situation.” The firm now expects the euro to fall to $1.35 in the next three- and six months, but still end the year at $1.45. The euro bought $1.3928 on Friday. Also, “recent political developments in the U.S. suggest the relative fiscal improvement may be even more U.S. dollar-positive than we previously thought,” wrote David Woo, head of the firm’s global foreign-exchange strategy, in a report released late Thursday. Namely, the election of Scott Brown in Massachusetts makes a second stimulus package less likely before mid-term elections, Woo said. “The core arguments behind our U.S. dollar-bullish view remain unchanged: an effective tightening of U.S. monetary policy following the end of asset purchases and an improvement in the U.S. fiscal position relative to Japan and Europe will be the key drivers this year,” he said.

There’s no denying China’s enormous and growing economic clout, but the world may be overestimating the nation’s capabilities, say some participants in this year’s World Economic Forum annual meeting.

The costs of employing a worker in the United States increased 1.5% in 2009, the Labor Department reported Friday.

NEW YORK (MarketWatch) — The dollar added to gains versus most major currencies on Friday after a report said the U.S. economy grew at a 5.7% pace in the fourth quarter, faster than many economists expected. The dollar index , which tracks the greenback against a trade-weighted basket of six major currencies, rose to 79.129 in recent trading, compared with 78.875 late Thursday. Traders will also watch for a report on consumer confidence due at 10 a.m. Eastern.

NEW YORK (MarketWatch) — The dollar added to gains versus most major currencies on Friday after a report said the U.S. economy grew at a 5.7% pace in the fourth quarter, faster than many economists expected. The dollar index , which tracks the greenback against a trade-weighted basket of six major currencies, rose to 79.129 in recent trading, compared with 78.875 late Thursday. Traders will also watch for a report on consumer confidence due at 10 a.m. Eastern. (Corrects headline.)

WASHINGTON (MarketWatch) – U.S. employment costs increased 0.5% in the fourth quarter, a slightly up-tick from a 0.4% gain in the previous month, the Labor Department reported Friday. The increase in the employment cost index was slightly above expectations of Wall Street economists. According to a survey conducted by MarketWatch, analysts were expecting a 0.4% gain. Benefit costs rose 0.5% in the quarter, while wages and salaries rose 0.5%. For all of 2009, the employment cost index increased a record low 1.5%. Economists said the weak trend is not surprising given high unemployment rate.

The dollar traded slightly higher against major rivals on Friday, as traders awaited the release of U.S. gross domestic product data for the fourth quarter.

1-29-2010

5:49a GMT – Extremely strong bearish trend continued yesterday with the pair never rising much at all to offer an entry at main resistance, however the 8:00a GMT candle offered a bearish reversal doji just beneath our first layer of resistance and in this strong of a trend that is all the confirmation I need.

Daily Outlook: Going into the weekend I always play it a bit more conservative as I dislike having open trades over the days off, but I remain bearish on the pair as new lows were again made, the extremely bearish falling trend resistance held and the daily and weekly charts confirm the bearish nature of the pair.

Trading Idea: Primary trade will be shorts in the 1.4010-1.4030 resistance zone though I will consider any decent short signal below 1.4010 as well. Biggest threat to the trade today is probably traders taking some profit before the weekend. Targets from 1.4010 are 1.3970, 1.3940 and 1.3905.

(click to enlarge)

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Canadian stocks finish lower but make up some ground after dropping to lows not seen since November.

Federal Reserve Chairman Ben Bernanke survives hard-core opposition to his handling of the financial crisis and wins approval for a second four-year term.