Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (3877)	2/5/2008 6:46:17 AM
From: Giordano Bruno	Read Replies (1) \| Respond to of 71456

Forex - Greenback Rises To 8-day High Against Euro [EUR/USD] 2/5/2008 6:13:58 AM Tuesday morning, the US dollar rose to multi-day highs against most of its major counterparts. The greenback hit a 2-week high against the Swiss franc, 8-day high versus the euro and 6-day high against the yen. Later today, investors will be watching for the release of the US ISM Non-manufacturing data. However, investors will be focusing the monetary policy announcement by the European Central Bank and Bank of England on Thursday. The BOE is expected to lower its rate from current 5.5%, while the ECB rate will likely stay unchanged at 4%. Against the European currency, the US dollar showed strength in Asian trading on Tuesday. At about 5:15 am ET, the dollar-euro pair hit an 8-day high of 1.4692, moving from 1.4836. This may be compared to yesterday's close of 1.4831. The euro weakened after a key PMI survey on euro zone services sector activity unexpectedly showed a significant downward revision. Euro zone services PMI for January was revised down to 50.6 from the flash estimate of 52.0. The Euro-Zone December retail sales data released at 5.00am further weakened the common currency against the dollar. The Euro Zone's retail sales edged down 0.1% month-on-month in December compared to a 0.5% fall in November. Economists were looking for an increase of 0.2%. The US dollar gained ground against the British pound at about 2.20am Eastern Time. The sterling-dollar pair hit 1.9668 at about 4.20am Eastern Time, moving up from 1.9766. The pair that closed yesterday's deals at 1.9737 is now quoted at 1.9697. The pound fell against the dollar after a report from the U.K.'s biggest mortgage lender showed house prices stagnated in January, adding to pressure on the Bank of England to cut interest rates this week. The Swiss franc rallied against the dollar and hit a 2-week high of 1.1042 at about 5.55am Eastern Time, compared to yesterday's close of 1.0885. The greenback advanced against the Japanese unit in early trading today. The dollar-yen pair scaled to a 6-day high of 107.75 at about 5.25am Eastern Time, compared to 106.73 in late New York Monday.