The USD is mixed after conflicting economic indicator releases. The Economy expanded faster than expected in the 2nd quarter (3.3%) vs. an estimated 1.9% boosted primarily by exports. Consumer spending has increased 0.2%, and personal income declined 0.2% as doubts about the US economy’s strength keep pressuring the currency yet again.

The US$ currently is weaker against the EUR 0.22%, , CHF 0.28% and JPY 0.77%. and weaker against GBP -0.02%

The commodity currencies are stronger this morning, CAD 0.24% and AUD 0.28%. The CAD gained some ground after Gustav is set to hit the oil platforms in the Gul... Read more »

Filed under: Dean's FX

Workers Evacuate Rigs as Gustav Closes In

Crude jumps as crews leave oil rigs as Hurricane Gustav bears down on the Gulf of Mexico.

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Inflation Down Slightly as European Economics Continues to Erode

The index measuring consumer and corporate confidence came in under expectations while lower oil prices helped ease inflation.

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Canadian GDP Expected to be Positive in 2nd Quarter

The Canadian dollar received ... Read more »

Filed under: Forex Trading News and Rumors

Tropical Storm Gustav possible upgrade to a Hurricane pressured the Oil market upwards with potential disruptions to the Gulf of Mexico’s supply of crude. ECB's Webber reduced the uncertainty surrounding european rates with his comments calling rate reduction speculation "premature". Good economic fundamental news balanced the outlook for the USD as durable goods unexpectedly climbed 1.3% in July

The US$ currently is weaker against the EUR 0.18%, GBP 0.09%, CHF 0.38% and JPY 0.35%. The commodity currencies are mixed this morning, CAD -0.04% and AUD 0.82%.

The CAD appreciated after Gustav is set to hit the... Read more »

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Oil Prices Fall as Storm Heads Toward Gulf

Oil Companies have begun the evacuation of oil platforms in the Gulf Mexico as Gustav is expected to hit the area. There are various forecasts with different scenarios being speculated. The IAE has calmed investors by announcing that they would release oil stocks to compensate for the losses in the area's production.

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Tropical Storm Gustav regains strength

Gustav has gone from a wind strength of 40 miles per hour to 75 and meteorologists expect it to be upgraded to Hurricane status today. Louisiana has already declared state ... Read more »

Filed under: Forex Trading News and Rumors

Morgan Stanley Predicts Asian Currencies to Weaken

Morgan Stanley analysts expect most Asian currencies to fall against the dollar as slumping Western economies reduce demand for exports from the region.

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Storm Watch in Gulf of Mexico Continues to Push Up Oil Prices

Tropical Storm Gustav - now expected to strengthen to hurricane status - continues to bear down on oil rigs in the Gulf of Mexico. An evacuation plan has been prepared and will be implemented should Gustav continue to threaten oil fields.

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Filed under: Forex Trading News and Rumors

The post UK Holiday session saw geopolitical concerns over Russia’s endorsement of Georgian breakaway regions and Tropical Storm Gustav upgrading to a Hurricane worried the Oil market with potential disruptions to the Gulf of Mexico’s supply of crude. The USD hit a wall as concerns about consumer spending increased and traders discounted the possibility of the Fed raising rates if the US economy shows no signs of growth.

The US$ currently is weaker against the EUR 0.46%, GBP 0.29%, CHF 0.43% and JPY 0.71%. The commodity currencies are stronger this morning, CAD 0.46% and AUD 0.61%.

The loonie gained against... Read more »

Filed under: Dean's FX

Hurricane Gustav Pushes Oil Up in Early Trading Hurricane Gustav could intensify and threaten oil wells in the Gulf of Mexico. While it is still too early to say with certainty which path Gustav will follow, potential supply interruptions are still putting pressure on prices. Read the full article

Oil rallies to $117 on hurricane fears The potential threat of Hurricane Gustav to offshore oil platforms near Louisiana and Texas has appreciated the price of oil by $2. ... Read more »

Filed under: Forex Trading News and Rumors

The UK Holiday made the historically quiet last week of August even duller with low liquidity and questions about the USD’s continued strength. Financial Stocks brought down the Dow more than -2%, with the news that Columbian Bank of Kansas was closed by regulators, the FDIC announcing that Citizens Bank would take over the deposits. Insurer AIG is also in hot water after Credit Suisse commented it could lose up to 2.4 billion. Few market participants and low liquidity with this kind of announcements make for great volatility across the board. Bernanke said the ‘financial storm’ in the US ‘has not yet su... Read more »

Filed under: Dean's FX

The US$ is stronger in the O/N trading session. Currently it is higher against 14 of the 16 most actively traded currencies in another ‘whippy’ trading range. During Friday’s session, the US$ regained its new found strength and advanced vs. the EUR. With commodities retreating (the negative correlation remaining intact) and Bernanke saying that the Fed will remain vigilant against inflation had the USD bull’s believers once again.

Bernanke said the ‘financial storm’ in the US ‘has not yet subsided, and its effects on the broader economy are becoming apparent in the form of softening economic activity and rising unemployment’ (next month NFP should be an eye opener). The inflation outlook is uncertain but will pr... Read more »

Filed under: Dean's FX

What is correlation? Wikipedia Definition:

In probability theory and statistics, correlation, (often measured as a correlation coefficient), indicates the strength and direction of a linear relationship between two random variables. In general statistical usage, correlation or co-relation refers to the departure of two variables from independence.

Some currency pairs tend to move together in the same direction... Read more »

Filed under: Forex Graph Commentary