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USD Daily News
USD Recovers from Mid-Trading Day Losses and Gains on Stock Slide
The USD experimented with a choppy trading session against its main currencies rivals yesterday, amid a slide on worldwide stocks. The market fluctuations were conditioned by a fall on Wall Street, which saw stocks plunge to their lowest levels since 2003. There was also a fall in shares in the auto industry threatening bankruptcy in this vital sector of the U.S. economy.
The USD recovered from its earlier losses and managed to rally against the EUR later in the day. It is now trading back under the 1.2500 level after being traded at a session low of 1.2813 yesterday morning. Against the JPY the USD slipped as investors sought refuge from the low yielding currency.
In other news, investors witnessed a drop in consumer price levels from 0.1% to -0.1% in October, which may be indicative of two things. One, stores may be lowering prices across the U.S. to increase spending during the holiday shopping season. Secondly, consumers are simply spending less, lowering the demand for general goods and revealing the doubtful nature they have about their economic situation.
The price contraction has brought new fears, after the cheapening of Oil and other raw materials, because it could trigger deflation. In yesterday's FOMC Meeting Minutes, Fed officials said that with a deflationary spiral they lack the power to counteract because interest rates are already too low. Deflation is considered for many as a danger to the economy as the resulting fall in prices lead to consumers and businesses holding off on further purchases in expectations of even lower prices, sending the economy down a dangerous path. In addition, the Fed also pointed during its meeting that more interest rate cuts may be needed to prevent further damage to the already week economy.
News Archives
| 19.11.2008 | U.S. Building Permits on Tap |
| 18.11.2008 | Choppy Trading Day Yesterday for the Dollar |
| 17.11.2008 | Watch For Release of the Empire State Manufacturing Index Today |
| Dato | Tidspunkt | $€£¥ | Begivenhed | Per. | Forr. | Prog. | Fakt. | Vigt. |
|---|---|---|---|---|---|---|---|---|
| 11/20 | USD |  Treasury Sec Paulson Speaks | * | * | * |  | ||
| 11/21 | 17:15 | USD | FOMC Member Plosser Speaks | * | * | * | |
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