Bernanke Testifies

03-02-2012

Federal Reserve Chairman Ben Bernanke testified yesterday before the House Budget Committee in Washington. Chairman Bernanke confessed that the Fed’s objective of 2% inflation may not be possible if unemployment in America continues to rise. On Wednesday, the ADP Non-Farm Employment Change numbers came in far below expectations. The Fed also reiterated that it plans to keep short term investments at almost zero until 2014. The GBP/USD is up 0.10% and trading at 1.5821. The USD/CAD is down slightly by 0.03% at 0.9990.

Gold Heading Up
Gold is on the rise this morning in Asian trading amidst reports that the Greek debt restructuring is not going according to plan. Without agreement between the Greek government and private creditors, Greece faces a default on March 20. Gold is up this morning by 0.12% and valued at 1761.35. Silver is up as well, currently sitting at 34.235, an increase of 0.18%. Investor discontent with EU fiscal and monetary policy and the lack of solution regarding the Greek debt crisis has caused many to flee the uncertainty of the euro and embrace more trustworthy equity, especially precious metals.

Real employment numbers to be released
After the disappointing employment estimated from the ADP numbers, the Non-Farm Employment Change and the Unemployment Rate will be released today at 1:30pm Eastern Standard Time. Also in the U.S., the ISM Non-Manufacturing PMI will be released. Outside of America, three other major reports will be released today. To the north in Canada, the Employment Change and the Unemployment Rate will be made available. The CAD has been level with the greenback recently and it will be interesting to see of this trend will continue after Canadian employment statistics are released. Elsewhere, the Services PMI will be released in the UK.

Recession coming to the UK?
Financial analysts are predicting that the UK will suffer from a recession in 2012. This distressing prediction comes from the National Institute of Economic and Social Research which believe that the UK economy will contract by 0.1%. Of course, some could argue that the UK is already in a recession and has been for several years. The GBP/USD is up 0.10% and trading at 1.5821.

Mixed news for stocks
Wall Street was in a mixed mood ahead of the upcoming employment numbers scheduled for release today in the United States. At the close of trading yesterday, the Dow Jones Industrial was down 0.09%. The Nasdaq Composite and the S&P 500 went in the opposite direction, climbing by 0.40% and 0.11% respectively.

Trends Reverse…Slightly 17-05-2012

The Euro is up slightly against the greenback during early European trading on Thursday, but remains far below levels from two weeks ago. The EUR/USD is up 0.18% and trading at 1.2739 this morning, rebounding from a 0.10% decline during yesterday’s trading in the United States that saw the pair close the session at 1.2717. The Dollar is [...]

The Collapse of Oil Prices Continues 16-05-2012

Early trading on Wednesday saw a continuing trend of investor concern towards the Greek political crisis and a rush to the greenback. With the chance of Greece leaving the Eurozone more likely with each passing day, the Euro continues to struggle against the Dollar. The EUR/USD is down 0.11% in early European trading this morning, at [...]

European Uncertainty 15-05-2012

The U.S. Dollar was up against most major currencies on Monday, as investor uncertainty regarding the Greek political crisis continued to push investors towards the safe haven of the greenback. The Euro is up slightly at the beginning of the European trading session on Tuesday by 0.05%, sitting at 1.2828. The Euro has declines sharply [...]

Euro Falls Once Again 14-05-2012

Political uncertainty in Greece and mass protests in Spain has pushed the EUR/USD down 0.15% to 1.2897 during late Asian trading on Monday. In fact, the greenback was either steady or up against most major currencies as traders searched for a temporary safe haven in order to dodge uncertainty in the markets. The increased value of the [...]

Time Is Ticking For Greece 11-05-2012

The Euro is back on the decline during Asian trading on Friday, with the EUR/USD down 0.14% and trading at 1.2920. The pair continues to hover at around 1.3000 after the single currency took a major hit due to fears surrounding political instability in Greece and future fiscal policy in France. The pound is also down against the greenback [...]

Euro Declines Stop 10-05-2012

The Euro has rebounded slightly against the USD during Asian trading on Thursday after posting huge losses over the last several days. The EUR/USD is up 0.15% and trading at 1.2946. The majority of major currencies are also up against the greenback this morning, including the Pound, Swiss Franc and Australian Dollar. The Aussie posted [...]

Euro Decline Continues 09-05-2012

The beginning of trading on Wednesday continued the negative trend of the Euro and oil. The Euro continues to decline sharply, down 0.24% and trading at 1.2975. The EUR/USD broke through the 1.3000 barrier earlier this week after European elections in France and Greece cast a shadow over the future of the single currency. The Euro is also [...]

Declines Continue for Oil and Euro 08-05-2012

The Euro is down once again during late Asian trading on Monday, after suffering huge losses yesterday. The EUR/USD is down 0.15% and trading at 1.3032. The single currency did manage to recover somewhat during late trading yesterday, rebounding from a decline of 0.81% at the end of the Asian trading session. Investors continue to show [...]

Future of the Euro in Doubt? 07-05-2012

Two key election results in the European Union are threatening to undo the single currency. Francois Hollande is the new president of France, after defeating Nicolas Sarkozy by a small margin in the second round of elections. Hollande is the first socialist president in France in the last seventeen years. Many voters in France expressed [...]

Oil Prices Plummet 04-05-2012

Oil prices plummeted during the U.S. trading session on Thursday after European Central Bank President Mario Draghi expressed concern over future growth of the EU economy. The price of crude was down 2.48% and trading at 102.61 USD per barrel. Oil was also hit hard because Draghi claimed that ECB was not planning to increase liquidity in [...]

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