American Dollar

Daily Market Commentary for September 1, 2009

American Dollar

After an unexpected dip in UK manufacturing activity in August the British pound started to fall against the American dollar, striking concerns that pace of economic recovery in Britain isn't quite what economists thought. (read more at Millennium-Traders.Com)

Economic data released today:

ISM Manufacturing Index (Institute for Supply Management):
U.S. ISM August Manufacturing PMI 52.9 versus July 48.9; U.S. ISM August Manufacturing PMI expected 50.9; U.S. ISM August Prices Index 65.0 versus July 55.0; U.S. ISM August Employment Index 46.4 versus July 45.6; U.S. ISM August New Orders Index 64.9 versus July 55.3; U.S. ISM August Production Index 61.9 versus July 57.9; U.S. ISM August Inventories Index 34.4 versus July 33.5.

Pending Home Sales from National Association for Realtors (NAR):
U.S. Pending Home Sales Index rose 3.2% to 97.6 in July; U.S. Jul Pending Home Sales rose12.0% from July 2008.

Construction Spending:
U.S. Construction Spending fell 0.2% in July versus consensus of an increase by 0.2%; June Construction Spending revised to +0.1% from +0.3%; July Commercial Spending down, residential outlays up.

At the NYSE closing bell on the New York Stock Exchange, here is how the major world indices and major U.S. stock indices ended the trading session on the world markets as well as the emerging markets including the stock market closing bell price:
DOW (Dow Jones Industrial Average) shed 185.68 points, EOD 9,310.60
NYSE (New York Stock Exchange) shed 155.43, EOD 6,487.81
National Association of Securities Dealers Automated Quotations (NASDAQ) shed 40.17 points, EOD 1,968.89
S&P 500 (SPX) shed 22.58 points, EOD 998.04
BEL 20 (BEL20) shed 32.79 points, EOD 2,332.16
CAC 40 (CAC40) shed 70.1 points, EOD 3,583.44
FTSE100 (UKX100) shed 89.2 points, EOD 4,819.70
NIKKEI 225 (NIK/O) gain 37.53 points, EOD 10,530.06

New York Stock Exchange (NYSE) stock market indicators for the trading session today:
Advanced stock prices 542 declined stock prices 2,581, unchanged stock prices 79, stock prices hitting new highs 67 and stock prices hitting new lows 7. NYSE quotes for volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the New York Stock Exchange stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: SVA gain 0.75, HOD 12.50, LOD 10.01, EOD 10.46; PRU shed 3.80, HOD 50.55, LOD 46.62, EOD 46.78; EDC shed 5.75, HOD 107.00, LOD 95.95, EOD 96.46; FAS shed 11.09, HOD 80.30, LOD 67.51, EOD 68.06; MA shed 1.96, HOD 207.18, LOD 200.67, EOD 200.67; CME shed 11.87, HOD 296.79, LOD 278.66, EOD 279.17; HSP gain 0.06, HOD 39.57, LOD 38.76, EOD 39.15; HCN shed 2.63, HOD 41.41, LOD 40.00, EOD 40.08; AIG shed 9.33, HOD 43.15, LOD 35.65, EOD 36.00; CAH gain 0.28, HOD 25.98, LOD 24.97, EOD 25.11.

National Association of Securities Dealers Automated Quotations (NASDAQ) stock market indicators for the trading session today:
Advanced stock prices 585, declined stock prices 2,171, unchanged stock prices 93, stock prices hitting new highs 40 and stock prices hitting new lows 11. NASDAQ quotes, volatile stocks and market trends, as well as stock quotes, stock prices and stock symbols of Day Trading Stock Picks on the NASDAQ stock market for Day Trading online and active Day Trading for those who are or would like to be Day Trading for a living: BIDU shed 11.30, HOD 338.70, LOD 316.49, EOD 318.76; FSLR shed 6.60, HOD 122.35, LOD 114.47, EOD 114.98; ISRG shed 7.32, HOD 225.89, LOD 214.80, EOD 215.39; YRCW gain 0.07, HOD 2.55, LOD 2.22, EOD 2.30; SINA shed 0.17, HOD 31.16, LOD 29.71, EOD 29.83; IMMU gain 0.41, HOD 6.30, LOD 5.32, EOD 5.92; NVAX gain 0.61, HOD 7.79, LOD 6.61, EOD 6.65.

Market trends on the American Stock Exchange (AMEX) and stock market indicators for the trading session today:
Advanced stock prices 183, declined stock prices 355, unchanged stock prices 47, stock prices hitting new highs 26 and stock prices hitting new lows 3.

Chicago Board of Trade Futures Market for the day, at time of this posting:
E-mini S&P 500 (ES) Sept 09: EOD 996.50; Change -23.25
E-mini NASDAQ-100 (NQ) Sept 09: EOD 1,594.75; Change -30.25
E-mini DOW $5 (YM) Sept 09: EOD 9,300; Change -186
E-mini S&P MidCap 400 (MF) Sept 09: EOD 639.90; Change -14.10
Nikkei 225 (Yen) Sept 09: EOD 10,280; Change -180

World Currencies for the Forex Market, for Forex Trading by active Forex Traders, at time of this posting:
Euro 0.7035 to U.S. Dollars 1.4214
Japanese Yen 92.8500 to U.S. Dollars 0.0108
British Pound 0.6190 to U.S. Dollars 1.6155
Canadian Dollar 1.1040 to U.S. Dollars 0.9058
Swiss Franc 1.0661 to U.S. Dollars 0.9380

COMMODITY MARKETS:
Energy Sector - Nymex:
Light Crude (October 09) shed $1.91, EOD $68.05 per barrel ($US per barrel)
Heating Oil (October 09) shed $0.05, EOD $1.76 a gallon ($US per gallon)
Natural Gas (October 09) shed $0.16, EOD $2.82 per million BTU ($US per mmbtu.)
Unleaded Gas (October 09) shed $0.03, EOD $1.78 a gallon ($US per gallon)

Metals Markets - Comex:
Gold (December 09) gain $3.00, EOD $956.50 ($US per Troy ounce)
Silver (December 09) gain $0.14, EOD $15.06 ($US per Troy ounce)
Platinum (October 09) shed $17.20, EOD $1,231.00 ($US per Troy ounce)
Copper (December 09) shed $0.01, EOD $2.82 ($US per pound)

Livestock and Meat Markets - Chicago Mercantile Exchange (cents per lb.):
Lean Hogs (October 09) gain $1.35, EOD $49.50
Pork Bellies (February 10) gain $2.00, EOD $78.25
Live Cattle (October 09) shed $0.58, EOD $86.10
Feeder Cattle (October 09) shed $0.63, EOD $96.80

Other Commodities - Chicago Board of Trade (cents per bushel):
Corn (December 09) shed $10.50, EOD $319.25
Soybeans (November 09) shed $24.00, EOD $955.50

BOND MARKET:
2 year EOD 100 5/32, change 4/32, Yield 0.91, Yield change -0.06
5 year EOD 100 8/32, change 10/32, Yield 2.31, Yield change -0.07
10 year EOD 102 5/32, change 10/32, Yield 3.36, Yield change -0.04
30 year EOD 105 7/32, change -8/32, Yield 4.19, change 0.02

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Interesting,

This says it all, the dollar is doomed in my opnion if the world shifts away from dollar as it looks like it is.

UN wants new global currency to replace dollar

The dollar should be replaced with a global currency, the United Nations has said, proposing the biggest overhaul of the world's monetary system since the Second World War.

By Edmund Conway, Economics Editor
Published: 6:45PM BST 07 Sep 2009

A number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency In a radical report, the UN Conference on Trade and Development (UNCTAD) has said the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises.

It added that the present system, under which the dollar acts as the world's reserve currency , should be subject to a wholesale reconsideration.

China's political elite alarmed by US money printing
Is this the death of the dollar? Although a number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency, the UNCTAD report is the first time a major multinational institution has posited such a suggestion.

In essence, the report calls for a new Bretton Woods-style system of managed international exchange rates, meaning central banks would be forced to intervene and either support or push down their currencies depending on how the rest of the world economy is behaving.

The proposals would also imply that surplus nations such as China and Germany should stimulate their economies further in order to cut their own imbalances, rather than, as in the present system, deficit nations such as the UK and US having to take the main burden of readjustment.

"Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability," said Detlef Kotte, one of the report's authors. "But you will also need a system of managed exchange rates. Countries should keep real exchange rates [adjusted for inflation] stable. Central banks would have to intervene and if not they would have to be told to do so by a multilateral institution such as the International Monetary Fund."

The proposals, included in UNCTAD's annual Trade and Development Report , amount to the most radical suggestions for redesigning the global monetary system.

Although many economists have pointed out that the economic crisis owed more to the malfunctioning of the post-Bretton Woods system, until now no major institution, including the G20 , has come up with an alternative.


http://www.telegraph.co.uk/finance/c...ce-dollar.html