Subscribe

feed image

Our FX reports

Adam Solomon's insight into business and corporate FX issues.
Your Questions on foreign exchange sent direct to the professionals.
The Economy News brings you the latest foreign exchange rate news.

FX Latest

Check Exchange Rate


Bank rates source: Exchange Rates

TorFX Corporate FX solutions

INSIGHT

Insurers challenged by increased wild fire risks
With Russian wildfires grabbing the headlines, the Lloyds of London insurance market warns that...Read more...
Swiss bankers dismisses earning season hype
The Economy News presents an excerpt of an article looking into the hype that is the earning season...Read more...
Defending Woodford's Zimbabwean investment
It is lazy journalism to describe the Zimbabwean economy of 2010 as being one that is in scandalous...Read more...
Forex markets await the stress test
Mark Deans at MoneyCorp gives his morning verdict on the forex markets.Read more...
Standard Chartered warn of increased likelihood of double dip recession
Standard Chartered researchers say premature fiscal tightening could cause double dip recession....Read more...
Home Forex Check Forex Rate TorFX: US Dollar weakens on Bullard comments
TorFX: US Dollar weakens on Bullard comments PDF Print E-mail
Written by Sam Coventry   
Tuesday, 24 November 2009 09:46
Foreign currency service provider says comments on stimulus measures helps maintain weakness for US Dollar.


The EURUSD is down 0.287% at 9am in London, 1 EUR fetches 1.4919 USD.

The reprieve for the US Dollar this morning comes after the Dollar fell by the most in two weeks against the Euro yesterday.

Foreign currency service providers TorFX believe yesterday's Euro - Dollar strength comes after the President of the Reserve Bank of St Louis, James Bullard, said that policy makers should maintain current stimulus measures beyond March.

The Dollar also came under renewed selling pressure, as commodities and stocks advanced, reducing the allure of Dollar denominated assets.  
 
"Bullard said yesterday that the Fed should extend its purchases of mortgage-backed securities to give policy makers "the option to react to future news," maintaining concern that the market is being flooded with Dollars. The U.S currency weakened 0.8% against the Euro to $1.4989 in New York, the biggest intraday decline since November 9th," says an analyst note from TorFX this morning.
 
The Fed said on November 4th that it will purchase $1.25 trillion in quantitative easing through the first quarter of next year and reiterated that interest rates will stay at almost zero for "an extended period." The most accurate Dollar forecasts have predicted that the U.S currency will continue to weaken, even after the Fed raises interest rates.   
 
In terms of economic data, US existing home sales increased by more than forecast in October, to the highest level since February 2007. Purchases rose 10.1% to an annual rate of 6.1 million, from 5.54 million in September, spurred in part by a tax credit that lured first time buyers.

Cheaper homes and stimulus, expanded by the government, has revived an ailing housing market that contributed to the worst economic slump since the Great Depression.
 
The Euro continued to gain fresh impetus against the Dollar, amid reports that Europe's services and manufacturing industries expanded at the fastest pace in two years in November, after a reviving global economic helped the region to emerge from the recession. A composite index based on a survey of purchasing managers' increased, after exports rose by the most in more than a year in September.
Last Updated ( Tuesday, 24 November 2009 09:49 )
 

Get a quote today for your corporate FX solutions