Expectations for the Fed meeting and the Summit of Heads of State

This week it is expected that the dollar continues to fall, losing positions against the euro. After a brief spike at the beginning of the week, fell again on Tuesday against the euro in new annual lows. Thus, the euro traded at 1.48 dollars. (more...)

Tags: dollar, the economic, the global economy.

Yen drop in forex

Tags: dollar, the U.S. economy, Trading

Morgan Stanley reduced weighting of Peru, said that his market is “very overbought”

Morgan Stanley reduced weighting of Peru, said that his market is “very overbought”

Investment bank Morgan Stanley reduced the weighting of Peru in your portfolio at levels “below average”, after he placed in “similar to the market average.
As reported by Reuters, the bank said that the Peruvian market “looks expensive relative to its history and with their peers and is very overbought. Importantly, weight reduction also affects Chile. Read the rest of this entry »

Tags: bank, dollar, economy., Employment euro, financial, money, unemployment

Exchange Rate: Week from Friday 30 October to Friday, November 6, 2009

During the week the dollar depreciated 0.86% against the euro and 0.18% against the yen, resuming its downward trend, interrupted briefly during the previous week in which appreciated against the euro, although not against the yen. Depreciation occurred Basically, during the last days of the week and was explained in part by the Federal Reserve decision to keep its benchmark rate at almost 0% and the European Central Bank’s decision to do the same for the rate of 1.0%. Both banks showed similar views in relation to positive signals about the term of the crisis and the resumption of economic growth. Also, both banks showed little concern about inflationary pressures and an inclination to keep interest rates low until late in the first half of next year . Read the rest of this entry »

Tags: dollar, euro, Exchange rate, exchange rates, gold, sun, yen

Exchange Rate: Week from Friday 23 to Friday October 30, 2009

During the week the dollar has appreciated by almost 2% against the euro and depreciated by 2.1% against the yen. This behavior was reversed that had been observed in recent weeks, marked by an appreciation against the euro and the yen depreciation. This appreciation and depreciation of the week concerning the two currencies quoted, he gave in the first half of the week, until Wednesday, the day when the dollar was trading to 0.68 euros and 90.70 yen. Throughout Thursday and Friday in exchange rates were no greater variation, closing the week at 0.6795 euros and 90.12 yen. Read the rest of this entry »

Tags: dollar, euro, Exchange rate, exchange rates, sun, yen

Types of changes: Week of Friday 2 to Friday October 9, 2009

During the week we had a major depreciation of the dollar against major currencies and gold, except the yen. This was due to positive expectations about the end of the crisis, a faster economic recovery in countries outside the U.S. and England as well as an increase in interest rates more quickly in countries with more rapid recovery. They gave support to these expectations the increase in benchmark interest rate to 3.25% by the Reserve Bank of Australia, who considered passed the dangers of a recession and an emphasis on inflation risks. Meanwhile the European Central Bank kept its benchmark rate by 1%, and the Bank of England’s 0.5%.

Thus, in the week the dollar depreciated 1.03% against the euro and experienced a slight appreciation of 0.03% compared to the yen. The week ended with a record gold price of U.S. $ 1049.25 an ounce. Thus, so far year, we have a dollar decline of 5.24% and 1.25% against the euro and yen in the form in question. In terms of the last twelve months, the depreciation of the dollar is still 7.57% and 9.95%, against these currencies, respectively. Read the rest of this entry »

Tags: Australia's central bank, Banco Central de Reserva del Peru, Bank of England, dollar, euro, European Central Bank, Exchange rate, exchange rates, Geithener, Larry Summers, Obama, sun, yen

Exchange Rate: Week from Friday 20 November to Friday November 27, 2009

In the week ending Friday 27 the dollar depreciated against the euro and yen after a short period of appreciation experienced in the week before. The assessment was given to a lower risk aversion, following the disclosure of information favorable to economic activity, both the American economy as economies of the euro area and Japan. Thus, during the week the dollar depreciated 0.72% against the euro and 2.72% against the yen. Note the significant depreciation against the yen. This development comes despite the announcement by Dubai World to renegotiate its debt, the day that the dollar experienced a transient finding. Read the rest of this entry »

Tags: dollar, euro, Exchange rate, exchange rates, yen

Types of Changes: Week from Friday 18 to Friday 25 September 2009

From beginning to end of the week the dollar appreciated slightly against the euro in a 0.11%, and significantly depreciated against the yen by 1.96%. By the middle of the week the dollar had been depreciating against the euro, reaching the exchange rate of 0.6761 euros per dollar, before recovering and closing the week at 0.6807 euros per dollar. Against the yen, the performance was asymmetric, the dollar appreciated in the first day of the week, then depreciate and close the week at 89.61 yen to the dollar.

Overall during the week had an exchange market was characterized by downward pressure of the American currency and worries about their future. This development keeps consistency with respect to the allegations in previous reports of this blog and is related to expectations recovery of the international economy and thus a lower risk aversion. This lower risk aversion falls on a quest for higher returns, which are taking place outside the market dollar. The dollar’s appreciation against the euro, in the final days of the week is explained by investors’ reaction to statements by the G-20 in Pittsburgh, about a possible withdrawal of monetary stimulus in the economy.

The downward trend of the U.S. currency is seen in so far this month, as in the last twelve months. Thus, so far in September, the dollar depreciated 2.39% against the euro and 3.77% in relation to yen. In the last twelve months, the dollar’s depreciation was 0.52% and 15.87% against the euro and yen in the form in question. Read the rest of this entry »

Tags: dollar, euro, Exchange rate, exchange rates, sun, yen

Types of Changes: Week from Friday 16 to Friday October 23, 2009

During the week ending Friday, 23 this month currency markets are maintained showing the trend the past three weeks, with the dollar depreciating against the euro and appreciated against the yen. So against the euro, the dollar depreciated by 0.69%, which totaled a decline of 7.00% so far this year, climbed as high as 0.6663 euros per dollar, the lowest level of the last 14 months. Against the yen in the week the dollar appreciated 1.32%, implying an appreciation of 1.29% so far this year, to Friday, 23 dollar price rose from 92 yen.

The dollar is showing an uneven evolution, showing a clear trend towards depreciation against the euro and other currencies and against the yen appreciation. The depreciation against the euro keeps consistency with economic fundamentals, aligned with the requirements of a more balanced trade relations between countries and with the appropriate balance between saving and consumption within countries. However, this alignment is not seen in the relationship between the dollar and the yen. Read the rest of this entry »

Tags: dollar, euro, Exchange rate, exchange rates, yen

Types of changes: Week of Friday, 9 to Friday October 16, 2009

During the week the dollar depreciated 1.18% against the euro and appreciated by 1.24% relative to the yen. Thus, at the end of the week, the dollar was quoted at 0.6709 euros and 90.86 yen. Similarly, the price of gold continued its upward trend, reaching in excess of U.S. $ 1.064 a troy ounce to close the week at U.S. $ 1053.30.

Thus, the behavior was maintained last week the U.S. currency weakness against the euro and some recovery in value against the yen. The recovery of value against the yen should not be taken as a trend, but as a fluctuation in general the dollar remains weak against all major currencies in the international economy. This week ended the American currency fell to a 14 months against major currencies amid speculation of a behind the U.S. economy in the recovery of their productive activity, compared to other economies, especially in relation to China and countries with strong trade links with it. There are fears that the U.S. labor market weakness and the slow recovery of economic activity in this country, keep interest rates low and accentuate the gap with rates in other countries, as the latter begins to elevate.
Read the rest of this entry »

Tags: dollar, euro, Exchange rate, exchange rates, yen