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Archive for the Currency Category

Oil Climbs Over $100 -

Oil climbed over $100 a barrel in early trading on Wednesday for the first time since July 26th.  Oil has risen on positive economic figures such as industrial production and October retail sales.  However, the strength of the Dollar may slow increases in crude oil.

To read a related CNN Money article, please click here:

http://money.cnn.com/2011/11/16/markets/oil_prices/index.htm?iid=HP_LN

James Sutliff

Fed Economists: Europe Could Trigger Recession -

A paper released by the Federal Reserve Bank of San Francisco indicates that the crisis in Europe could trigger a 2012 recession in America.  According to the paper, the chances of a recession in the first six months of 2012 have increased to 50%.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-11-14/fed-economists-say-odds-of-2012-u-s-recession-exceed-50-on-europe-crisis.html

Jim Sutliff

Smaller Euro Zone -

The Euro zone debt crisis continues to spread and yields on Italian debt broke the 7% mark today.  As a result, the Dow Jones Industrial Average fell almost 400 points in trading on Wednesday.  Speculation of a smaller Euro zone with deeper integration has increased over the last week.  In a recent speech, French President Nicholas Sarkozy mentioned a two-speed Euro zone which would be smaller than the current European Union.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/11/09/us-eurozone-future-sarkozy-idUSTRE7A85VV20111109

James Sutliff

Italian Bonds Force Stock Futures Lower -

Stock futures are lower as traders focus on Italian bonds.  Bond yields for Italian debt have climbed and Berlusconi may step down as Prime Minister.   The 10 year Italian government bond yield rose to 6.58%.  The Dow Jones Industrial Average closed at almost 12,000 on Friday.

To read a related MarketWatch article, please click here:

http://www.marketwatch.com/story/us-stock-futures-sink-on-italy-worries-2011-11-07?dist=beforebell

Jim Sutliff

Economic News Sends Gold Higher -

Gold broke the $1,760 an ounce mark in trading this week.  The precious metal rose on the possibility of slower domestic economic growth and another round of monetary stimulus.  Recently, Federal Reserve Chairman Ben Bernanke indicated that additional monetary stimulus may be in the works to lower unemployment.  The lingering European debt crisis is also increasing demand for gold.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-11-04/gold-traders-more-bullish-as-debt-crisis-u-s-economy-spur-bets-on-gains.html

James Sutliff

Greek Referendum Sends Stocks Lower -

The Dow Jones started to rebound after falling more than 300 points.  Stocks fell after Greek Prime Minister George Papandreou called for a referendum on the European Union bailout plan.  Currently, the Dow Jones is down slighlty less than 200 points in afternoon trading.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/11/01/us-markets-stocks-idUSTRE7A01NM20111101

Jim Sutliff

Dollar Falls Against Yen -

The Dollar fell in trading to a low of 75.76 Japanese Yen.  The Dollar also lost ground to the British Pound and the Euro.  Light trading volumes and the weekend meeting of European Union leaders contributed to the shift in currency allocations.

To read a related MarketWatch article, please click here:

http://www.marketwatch.com/story/euro-drifts-amid-eu-summit-worries-2011-10-21

James Sutliff

European Rescue Fund May Increase -

The European Financial Stability Facility may be increased to $2 trillion Euros.  The potential increase sent the Euro higher in morning trading.  Currencies that fell slightly in trading are the yen, Dollar, and Swiss Franc.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-10-18/euro-drops-versus-most-peers-on-spain-rating-downgrade-confidence-data.html

Jim Sutliff

Euro & Gold Decline -

The Euro declined in trading after a spokesman for German Chancellor Angela Merkel indicated that the debt crisis would not be resolved in the next few weeks.  The news also sent crude oil and gold prices lower in trading on Monday.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/BT-CO-20111017-711244.html

James Sutliff

IMF Plan Opposed -

The United States opposed a plan to almost double the size of the International Monetary Fund.  Currently, the fund has $380 billion in resources.  Shareholders opposed to the plan included Japan, China, Germany, Canada, and Australia.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/10/14/us-g-idUSTRE79C74G20111014

Jim Sutliff

Euro Advances -

The Euro advanced today after a pledge by German Chancellor Angela Merkel and French President Sarkozy to create a plan to recapitalize the banks and address the Greek debt load.  Traders sent the Euro 2% higher against the Dollar in afternoon trading.  The increase could be temporary if a satisfactory solution to the Euro zone debt is not reached in the coming weeks.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-10-10/euro-advances-as-merkel-sarkozy-set-deadline-for-bank-capital-measures.html

James Sutliff

Treasuries Fall On Jobs Data -

Treasury yields rose for the fourth straight day after a government jobs report indicated that the economy added more jobs in September.  Ten year notes increased to 2.06% near the end of the trading day.  Yields had fallen to their lowest mark on September 23rd at slightly above 1.67%. 

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-10-07/treasuries-fall-as-u-s-economy-added-more-jobs-last-month-than-forecast.html

Jim Sutliff

Greece Missing Deficit Target -

A draft budget sent to the parliament indicates that Greece will miss deficit targets set in the bailout program.  The budget news sent stocks lower and raised concerns for euro zone debt.  The Euro may come under pressure in the next few weeks as traders seek safer investments.  

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/10/03/us-eurozone-idUSTRE79211720111003

Jim Sutliff

Euro Tumbles -

The Euro is falling fast and dropped to $1.37 in early trading on Friday.  The European debt crisis continues to weigh on the Euro and this is the lowest mark against the Dollar since February.   Also, a recent resignation by an executive board member of the European Central Bank fueled investor concerns over the bond buying program. 

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424053111903285704576559831788687972.html?mod=WSJ_hp_LEFTTopStories

Jim Sutliff

European Stocks Fall -

European stocks fell 3 percent in Monday trading and the Euro dropped against the Dollar.  The risks associated with Euro-Zone investments increased with weak economic data and outcomes from recent elections in Germany.  The Euro fell to $1.4111 against the US Dollar. 

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/09/05/us-markets-global-idUSTRE77L0AE20110905

James Sutliff