Dollar Finds Support After its steep losses last week, the dollar was higher Monday as it found support against most major currencies and equity prices stabilized. The yen was little changed as US stocks finished mixed following last week’s steep equity sell-off. The Australian dollar fell after reaching resistance and a marginally new 25-year high of 0.9666. The Reserve Bank of Australia is expected to maintain its key interest rate at 7.25%. The USD/CAD rose the most since March on concerns

The Picture of a Credit Crunch Not to belabor the point I have made in recent commentaries, but last Friday afternoon’s report from the Fed of assets and liabilities of commercial banks in the U.S. showed the sharpest 13-week contraction in bank credit – loans and investments – in the history of the series, which dates back to January 3, 1973. In the 13 weeks ended June 18, bank credit contracted at an annualized rate of 9.14% (see Chart 1 below). Because of current or expected capital

The Picture of a Credit Crunch Not to belabor the point I have made in recent commentaries, but last Friday afternoon’s report from the Fed of assets and liabilities of commercial banks in the U.S. showed the sharpest 13-week contraction in bank credit – loans and investments – in the history of the series, which dates back to January 3, 1973. In the 13 weeks ended June 18, bank credit contracted at an annualized rate of 9.14% (see Chart 1 below). Because of current or expected capital

The buck was bid against the majors in the NY session as a near $3 decline in oil prices coupled with an initially better tone to US stocks helped give the greenback a boost.  Economic data out of the US was uninspiring and elicited little market reaction.  The market brushed off the better than expected June Chicago PMI report which beat expectations by rising to 49.6 from 49.1 prior.  In contrast to the headline, the internals of the report were weak with new orders and

6/30/2008 2:59 PM: EUR/$..1.5747 $/JPY..106.03 GBP/$..1.9931 $/CHF..1.0197 AUD/$..0.9586 $/CAD..1.0174 JPY Firms on Upgrade Traders will digest a barrage of economic events and data this week with the greenback trading on softer footing early in the Monday session, dipping to 105 against the yen and 1.5835 versus the euro. The US reports released today saw a better than forecast Chicago PMI, which improved to 49.6 from 49.1 and beating out estimates for a decline to 48.0. Despite the

EURO The euro lost marginal ground vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.5740 level and was capped around the $1.5835 level.  Technically, today’s intraday high and low were right around the 76.4% and 61.8% retracements of the move from $1.6020 to $1.5280, respectively.  Traders bid the common currency higher after the release of EMU-15 flash June consumer price inflation data that printed at 4.0%, up from May’s 3.7% level and above

EURO The euro lost marginal ground vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.5740 level and was capped around the $1.5835 level.  Technically, today’s intraday high and low were right around the 76.4% and 61.8% retracements of the move from $1.6020 to $1.5280, respectively.  Traders bid the common currency higher after the release of EMU-15 flash June consumer price inflation data that printed at 4.0%, up from May’s 3.7% level and above

EURO The euro lost marginal ground vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.5740 level and was capped around the $1.5835 level.  Technically, today’s intraday high and low were right around the 76.4% and 61.8% retracements of the move from $1.6020 to $1.5280, respectively.  Traders bid the common currency higher after the release of EMU-15 flash June consumer price inflation data that printed at 4.0%, up from May’s 3.7% level and above

Eur/usd is quoting around 1.5810, and despite the pair is overbought, and technical divergences in 4 hours charts, the pair seems far for turning even in a small correction for now. Firs resistance for today will be the zone around 1.5845, followed by 1.5891 and finally 1.5920. Under 1.5789, the pair will find supports at […]