Following the release of various economical and corporate data today, Forex Traders Saw The US Dollar And The Euro Grow In Strength against many other foreign exchange currencies. The US dollar was given a welcome boost by encouraging manufacturing news, while the Euro benefitted from news of an ambitious fiscal cutback plan.
Forex traders it sites such as Finexo saw the dollar rally against the Japanese yen following a report which showed U.S. manufacturing exceeding predicted figures. The Institute for Supply Management said US manufacturing figures showed that manufacturing volume had expanded in January for the sixth month in a row, to the highest level for over five years. On Wall Street the dollar rose 0.6% against the Japanese yen to a session peak of 90.88 before finishing the day at 90.86.
Many global markets faced significant losses following a speech regarding the US economy on Thursday. President Obama’s Banking Reform Plans Scared US Markets, with the main US share index, the Dow Jones falling over 200 points as Obama gave his speech regarding plans to limit the size of banks and restrict their trade in a bid to avoid a repeat of the large scale economic crashes witnessed recently.
The Dow Jones finally ended the day 213 points down from where it began when the markets opened on Thursday morning. Two of the US’ biggest banks, JP Morgan Chase and Bank of America saw their share values plummet with JP Morgan Chase losing 6.6% and Bank of America falling by 6.2%. But it wasn’t doom and gloom for all investors. There were many profits made for investors using fixed odds financial betting who predicted the US President’s actions and bet that the markets would fall, which they duly did. Plus there were some fantastic odds to be had at financial betting companies like BetOnMarkets.
An agreement has been reached by the Arab Gulf States To Launch A Single Currency in the same way which the Euro was modelled. This new currency would give the large oil exporting economies a greater influence in the global foreign exchange and capital markets, thus rivalling and possibly even replacing the US dollar as the pricing currency for oil.
The concept of the Gulf Monetary Union was inspired by the European Monetary Union, which is viewed as an enormous success by the majority of Arab states. The states of Kuwait, Bahrain, Qatar and the regional super power Saudi Arabia are to launch the first phase for the creation of the Gulf Monetary Union later this year by founding a Gulf Monetary Council which will be quickly utilised as a full-fledged central bank. Such a move will certainly make waves for forex traders at trading companies such as Forexyard and should offer traders plenty of opportunity to make a profit.
Good news for all of you forex traders with long term trades in the US dollar. The dollar has continued to strengthen following its recent resurgence and will have been assisted by the new figures released by the US Labor Department. This figures showed that US unemployment rates fell from 10.2% to 10% since November. This, along with other encouraging news such as US factory orders rising by 0.6% has driven the US dollar up against almost all other currencies. This is why many Forex Traders Continue To Buy US Dollars at trading sites such as Forex Web Trader.
President Barack Obama declared the figures as “good news” but didn’t get carried away and insisted that there were “more bumps in the road to economic recovery”. Even though, due to the size of the US’ economy, the US Labor Department described employment as “essentially unchanged” this latest boost to the US economy, however small will continue to have forex investors looking at the US dollar as a favourable bet.
The US dollar has been in somewhat disarray since the US treasury release it’s worse than expected GDP predictions on Tuesday. Forex traders at trading sites such as Forexyard who have been wise to this trend will have also noticed just how poorly the dollar (UDS) has been performing against the Japanese yen (JPY) and just how much profit there has been, a seemingly will continue to be. The US dollar has Fallen To a 14-Year Low Against The Yen and despite early morning resurgences the strength of the dollar against the yen continues to freefall.
The last time that the dollar performed so badly against the yen was all the way back in 1995. The yen itself is powerless in its meteoric rise as the price is being driven up by the dollar selling as opposed to the yen buying. There are a number of reasons for the poor performance of the dollar over recent weeks. One of the main reasons is the continuing low interest rates on the other side of the Atlantic but the US Government seem unconcerned about the dollar’s decline and say they won’t provide intervention to halt the slide.
