Thread: USDs sharp turn

The Federal Reserve is using all the accessible weapons to undertake the heavy slump in the Forex market from near about past 25 years, as the USA government is predicted to soon publicize the particulars of the toxic benefit pay for plan. Though, the huge quantity of money in movement strength increase product prices in the impending prospect and set the USD Dollar to new lows beside major currencies.

Pulling out the breaks, in an attempt to turn the financial system around, the Federal Reserve made a significant choice last week to purchase, throughout the next six months. If you have a look on Forex updates, 300 billion USD of long-term administration treasuries. In adding up, the Federal Reserve announced a development of mortgage backed securities business program and that it would buy additional Government Sponsored Enterprises in the present year. Effectively, the Federal Reserve recognized a worsening of the enlargement procedure, although it didn’t talk about some little betterment seen in customer expenditure recently.

However, the great high quantity of currency now in movement, the administration could also produce money to purchase these securities, will again put force on product prices over the pending months and almost certainly set the USD to lower levels next to major currencies. In the last month, the Producer Price Index “PPI” rose 0.1 percent month-on-month, while the Consumer Price Index “CPI” increased 0.4 Percent throughout the similar month.

I hope the USD makes a comeback, many nations economies depend on the strength of the dollar.

After a long time I decided to make my thread alive. We'll again discuss Movements and updates of USD.
Recently, the currency market extended the gains seen over the last trading day, on Wednesday, during tonight’s Asian session. After two days where the currency investors bought only USD, the market had a sudden change of mind, as it seem that the speed of the credit crisis is going down. According to the Forex updates the US and the European calendars are filled with top-tier releases, something that may present strong momentum in the market for the rest of the trading session.

I'm looking forward to seeing these updates.

The USD dropped, hitting 7-month downs against the AUD as investor confidence about the worlds economy encouraged purchasing of commodities and riskier currencies.

Interesting,

As many who trade FOREX, you know what the once almighty dollar is doing day to day. And as such, I think most know the dollar has lost its luster over the past year.

When the dollar was in a death spiral late last year falling 20% to a point where CAN loonie was at dollar to dollar, this was a real wake up call for feds, yet what did they do, the simply bribed world banks to bolster dollar saying that it would be far worse if they didn't, and this is the first time the gov. has ever spoken the truth. lol

It is a sad situation, but with first 700 billion dollars going to world banks as a bribe, what other tricks are left in feds bag? Technically, we are in unchartered territory, so what comes next nobody knows, but given the artificial measures used to bolster dollar over past year given severe recession, it is time to short the dollar for sure.

Simply put, I think most here will agree, you cannot just keep printing more money and expect a different result, and this is what is being done, to the tune of trillions, and problably more we don't even know about for gov. has been great at keeping the truth from people, just look how long it took to admit we were in a recession. lol

The 20% bump back to former levels has to be temporary, and once the truth of China and other countries start cashing out the dollar, which is quietly happening at this very moment, watch out, we are in even more unchartered territory, like a black hole, then what? Can anyone make a case for the dollar to rise again? Bribing world banks only goes so far, and even if economy were to bounce back overnight, highly unlikely, this would not solve the trillions in debt with nothing but debt backing dollar. Good faith only goes so far, and who has faith in banks, gov. or dollar these days? Oh well, atleast it allows us to make money in FOREX market.

Success to all,

Even i read that Federal Reserve Chairman Ben Bernanke said that it was his assessment that the economy is “turning the corner” and that the US could see growth in the second half of this year. This testimony in front of the US Congress contradicted his last month’s report when he declared that it could take until mid-2010 before any growth is seen. What should have been good news was muted by jitters over the release of the stress test this coming Thursday and an announcement by President Obama that he intends to raise business taxes by 5% in the short term to help cover the ever growing national debt. It is thought that 10 of the 19 banks that submitted to the US Treasury’s stress test will have to raise additional revenue in order to remain solvent, however to what degree these companies are struggling was the source of much debate on Tuesday.

At 11:20PM GMT, at broker trading boards, the US Dollar was down .7% to the Euro to 1.3315, up .22% to the Yen to 98.68, down .45% to the British Pound, down .2% to the Canadian Dollar to 1.1746, up .6% to the Swiss Franc to 1.1325, and down .8% to the New Zealand Dollar to .581.

Funny,

It was Bernanke which only admitted we were in a recession a year late after most people already knew it. Seems he was the last to know, or admit it, so he would be the last person I would believe when he commented that we were turning the corner. He didn't mention which corner, so same old double talk from fed. lol

Success to all,

US Treasury Secretary Timothy Geithner said that none of the 19 banks being considered under stress test are at risk of liquidation.
Regulators have told Bank of America that it needs $34 billion of capital, while auto and mortgage lender GMAC LLC needs $11.5 billion and Citigroup needs $5 billion, according to people familiar with the subject.
On Wednesday, the USD rose to 98.65Yen, up 0.3% from late US trade.

Interesting,

Whenever I hear statements like that, I cringe. lol What we saw yesterday defies logic, banks are still not out of the woods, yet we saw markets bounce up, and optimistic talk for the first time, yet the coming foreclosure part two is about to kick in, then we will see how the stress test shakes out.

What no one wants to talk about is the truth, and that relates to how many unemployed will also be losing their homes, millions more, and the banks will need even more money, especially the BofA and Citi monsters who are sucking off more tax dollars than all the others combined.

Millions got notice their credit card lines were being reduced by half and interest rates doubled, so you know darn well why, Bank of America is desperate to survive, and by lowering exposure and double revenues from credit cards is last ditch attempt to avoid gov. takeover. Just look at the bad press on these interest rate increases, even Obama saw the backlash and is trying to counter it with more regulations, but too little too late, these crooked greedy banks should have been left to fail, end of story.

Success to all,