Greenback down – U.S. 15 trillion in debt

10-01-2012

The greenback stumbled against the Euro by the end of trading yesterday, as skepticism against the single currency waned due to the much publicized meeting between German and French officials and the resignation of the Swiss Central Bank chief. The EUR/USD was trading at 1.2759 yesterday, down 0.32 percent. The strengthening of the Euro could be somewhat deceiving, as the Dollar also slumped against the Yen, Swiss Franc and its counterparts from Canada, Australia and New Zealand. The GBP/USD is up in early trading today by 0.129% and currently rests at 1.5478.

U.S. 15 trillion in debt

The national debt of the United States is now bigger than the country’s economy. The debt, now at a staggering 15.23 trillion USD, with some estimates placing it as high as 23 trillion, is higher than the country’s annual GDP which is 15 trillion Dollars. While it is unclear whether or not this milestone will have any short term impact on the greenback, this catastrophic statistic could have a serious psychological influence on traders. The EUR/USD is up this morning, trading at 1.2787, while the AUD/USD is up as well, trading at 1.304.

Gold takes surprising dip

Gold was down in trading yesterday, despite a drop by the USD against other major currencies. This is contrary to normal market behavior, where the precious metal gains in value when the USD declines. Commodities are up all across the board in early trading today, with gold up 0.84% and trading at 1621.55. Silver is also up, trading at 29.223. The price of oil dropped yesterday, a result of higher than expected energy reserve reports from the United States and increased confidence in the European markets.

Chinese economy continues to decline

The Chinese economy experienced its lowest import growth over the last two years this December. The recent import numbers from the China failed to meet expectations. A significant loss of steam in the Chinese economy will force the EU to readjust its debt crisis agenda. Asian stocks are up today, with the Hang Seng up 0.37% and the Japanese Nikkei index up by 0.95%.

Swiss Central Bank Shake Up

The USD/CHF declined after the shocking news of the resignation by the head of the Swiss Central Bank, Philippe Hildebrand. The USD/CHF is up in trading this morning by 0.09%, currently at 0.9488. Analysts don’t believe that this significant change in personnel will have any impact on the current markets in the short term. The EUR/CHF and the GBP/CHF are both down in trading thus far, with the former at 1.2113 and the latter at 1.4676.

European Indices Drop

Markets are on the decline, as investor concerns about the state of the European economy may have returned after yesterday’s positive news. The Germany 30 is down by 0.38%, valued at 6034.83. The UK 100 is down as well by 0.66%, currently sitting at 5612.26. U.S. indices are heading in the opposite direction, with the US 30 up by 0.27 percent and the US SPX 500 up by 0.23 percent.

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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