Greenback Falls as Inflation and Housing Starts Worsen The dollar fell against other key currencies Tuesday on more signs of stagflation. US producer prices soared to a 27-year high and housing starts dropped to a 17-year low, further discrediting the Federal Reserve’s attempt to stimulate the economy without causing serious inflation. The yen rose as US stocks declined for a second day on worries the US economic slowdown will be prolonged and credit-market losses may deepen. The euro gained

Dollar Overbought The dollar consolidated gains against other major currencies Monday after reaching multi-month and multiyear highs last week. The greenback is currently overbought and data from the Chicago Mercantile Exchange showed that in the week to August 12, speculative investors had shifted their positions to stand long of the dollar against other leading currencies for the first time since February 2007. This could be read as bullish for the dollar, but we are more inclined to view

USD Rally Continues The dollar continued rallying versus its rivals Friday. The GBP/USD dropped for an 11th day, the longest losing streak in at least 37 years, on speculation a UK recession will force the Bank of England to lower interest rates. The Australian dollar fell as commodity prices declined and traders bet on lower interest rates. However, the Canadian dollar gained as Canada’s trade surplus increased in June and manufacturing shipments exceeded expectation. The EUR/USD fell for a

Dollar Index Penetrates Downtrend The dollar rose against its rivals Thursday despite the highest US inflation rate in 17 years and higher-thanexpected jobless claims. Investors shook off stagflationary readings, betting the Federal Reserve would get help from falling commodity prices in inflation fight. The greenback was supported by lower energy prices and higher US equity prices. The yen fell on increased risk appetite as US stocks rose for the first time in three days after regulators

Commodity Currencies Find Support as Oil Gains The dollar traded mixed versus its rivals Wednesday, erasing earlier gains against the Australian and Canadian dollars after crude oil prices rose for the first time in four days. The euro, trading on both sides of the 1.49-area support, was little changed in late trading. Sterling plunged after the Bank of England saw serious trouble in the UK economy but downplayed the risk of prolonged inflation. The USD/JPY initially fell despite contracting

Greenback Consolidates Gains The dollar traded mixed Tuesday consolidating multi-month highs over last week versus the yen, euro and Canadian dollar, while extending gains against the Australian dollar and sterling. The greenback was initially boosted after the US trade deficit unexpectedly narrowed in June as exports registered their biggest gain in nearly four and a half years. Sterling fell to the lowest level in over two years after more troubling UK economic data. The aussie declined for

Dollar Index at Crucial Resistance The greenback continued its ascent Monday on falling crude oil prices and rising US stocks. Supported by weaker growth outside the US, the dollar also got some safe-haven flow from the fighting between Russia and Georgia. Sterling fell to a 21-month low and the euro traded near a 6-month low on declining European economic growth. The Australian and Canadian dollars continued their declines as commodity prices fell again today. The USD/JPY was little changed

Dollar Surges on Further Signs of Economic Slowdown The greenback surged on short covering and further signs the US economic slowdown is spreading globally. The EUR/USD fell to a 5-month low, the AUD/USD was also at a 5-month low, the USD/CAD rose to a 12- month high and the GBP/USD was at its lowest point in 20 months. The USD/JPY reached the highest level since the beginning of 2008. The dollar index traded near 76 today, about 5 points above April’s low and just below the resistance from

USD Rallies, Testing Important Resistances The dollar gained against most key currencies on mixed US economic data as jobless claims rose to an over 6-year high but June pending home sales unexpectedly increased over 5%. The dollar is overbought, at important technical resistances against its rivals. This may lead to some short-term consolidation, but the long-term USD outlook is positive. The dollar block currencies continued declining as their term-of-trade deteriorated on falling commodity

USD Gains as Global Growth Falters The dollar gained as US stocks rose on falling oil prices and the Federal Reserve kept interest rates unchanged. The Fed is unlikely to change rates anytime soon and warned that several factors are expected to keep US economic growth on a slow pace. “Tight credit conditions, the ongoing housing contraction, and elevated energy prices are likely to weigh on economic growth over the next few quarters,” the Federal Open Market Committee said in its statement