Stronger dollar in the last business day for 2007
It is better most of the U.S. consumers to make shopping at the last day of the year to help the economic using the very good prices in the shops and to forget about the job today. Stop working today and go to shopping is the best help for the U.S. economy that have to send positive signals in the beginning of 2008. For the last business day in 2007 the market is in very low volumes. Practically the trading will be dynamic today in these very low volumes. The start of 2008 is very important and many traders will follow the trading direction during the year the trading by the first week of 2008 direction. As overall today the dollar will make recovery against the majors currencies
Gold Closes At Seven-Week High Of $842.70
Friday, December 28, 2007 2:37:41 PM – Gold finished at its highest level in seven weeks on Friday in U.S. trading. Bullion for February delivery closed at $842.70, up $10.90 for the day. Bullion finished up for the fifth straight session and ended the week up $27.30 from last Friday’s close.
The precious metal’s hedge value was boosted by further weakness for the U.S. dollar. The greenback extended its 2 1/2 week low against the euro, continuing a downward move that began Tuesday evening. The buck also fell to a 10-day low against the British pound and a six-week low against the Canadian dollar.
Global banks compete for growing forex business
London: Sharp currency moves and a dollar slump have prompted many retail investors to turn to foreign exchange to yield returns in troubled markets.
The world’s largest banks are looking for a wider margin than the razor thin spreads available from interbank trade.
Volumes in foreign exchange trading are huge, averaging around $3.2 trillion per day, according to the Bank for International Settlements. But the majority of this trade is carried out by banks and brokerages.
The sharp fall in the dollar has provided valuable trading opportunities for investment banks.
One of the biggest players in forex trading, Citi, a top three player in the FX market, announced a week ago that it was teaming up with Copenhagen-based online trading bank Saxo to offer its clients currency trading.
The pound-dollar will test 1.96 in near term.
The British pound fell below the level of 2.00 and even test the levels of 1.99 today after the solid decision by Bank of England to cut the interest rates with quarter percent this month. The traders speculate by the statement today that BoE is ready to cut the interest rates again in the beginning of 2008. The recovery of the dollar against the pound will continue, as the key supports are form at 1.9800 and the levels of 1.9550/1.9600. These both levels will be tested till the end of 2008. We at World-Signals.com hold short positions in target of 1.19600 in near term.
The year 2007 is called “The year of the inflation”
The year 2007 we at World-Signals.com call the year of the highest inflation in the whole world. This high inflation comes in the world biggest economy after the Friday’s consumer price index report. Almost all countries of the world suffer by extremely high inflation this year. The inflation this year was cause by couple of factors one of the most important is the high oil prices and the weak dollar. The rumors and fears for the starting recession in U.S. together with the problems with the world economic growth send the currency investments as losing. Finally this high U.S. inflation causes the Fed to think about the new interest rates correction. The high inflation would not allow to Bernanke to cut the key benchmark interest rates again. The dollar is attractive currency again and many traders will start to accumulate dollars in expectations for recovery. The dollar there is broad space for recovery after the huge losses during the last couple of years.
Advertisment
