Swiss Libor Rate Unchanged at 2.75%

Swiss National Bank chose to keep the national three-month Libor (interest rate) unchanged at 2.75% after it was increased by 0.25% back in September 2007. After this announcement Swiss franc gained a little against all other major currencies except the Japanese yen.
The reason to stop increasing the interest rates further came from two sides: first, Swiss National Bank (SNB) is expecting that GDP growth will be slowed down by the global instability – the fact that wasn’t foreseen in the September economy outlook; second, inflation rate is slowing down, which removes any fundamental base for another rate hike.
With the inflation rate at the expected 0.7% rate for 2007, SNB now has nothing to worry about – over-regulating something that is working fine is not a job for central banks:
The expected downturn in economic growth will result in an improved inflation outlook for 2009 and 2010. However, rising oil prices will temporarily push up inflation in the first half of 2008. Assuming that the three-month Libor remains unchanged at 2.75%, the National Bank expects an average annual inflation rate of 0.7% in 2007, 1.7% in 2008 and 1.5% in 2009. After having passed its peak in the first half of 2008, inflation is likely to stabilise below 2%.
This rate decision wasn’t a surprise for analysts and helped CHF to gain against other currencies. Only Japanese yen, which is growing after the Nikkei Index fell down by more than 2% today, showed more power against franc, gaining almost 0.5% against Swiss currency.

New Zealand Dollar Rises on Unchanged Rate

New Zealand dollar rose against all other major currencies after the Reserve Bank of New Zealand left the Official Cash Rate (OCR) – short-term lending interest rate – unchanged at 8.25%. And as it was hinted by Bank Governor Alan Bollard the rate is not likely to be lowered until 2009.
Alan Bollard marked labor market problems and the slowdown in housing sector as the main obstacles for the economical growth increasing:
Economic activity has occurred largely as outlined in the September Monetary Policy Statement. Capacity pressures – particularly in the labour market – remain significant, while the housing market has clearly slowed. A substantial income boost is still expected to occur through 2008, as recent dairy price gains reach farmers.
High interest rates in New Zealand for a long time were the main attractor for the Forex traders that favor carry trading. Keeping the rates at 8.25% gave NZD a significant boost against major currencies – NZD/USD increased by more than 0.8% and NZD/JPY gained more than 1.7%. However, this growth might be a temporary speculation which will see some correction today, but if carry trade survives, the general trend for New Zealand dollar will be definitely bullish.

U.A.E., Qatar, Bahrain and Saudi Arabia Cut Rates

The United Arab Emirates decided to cut their bank repository rate by 0.25% to 5.25%; Saudi Arabia decreased its benchmark rate for deposits also by 0.25% to 4.0%; Qatar and Bahrain reduced their deposit rates by the same amount – 0.25% to 4.0%. Kuwait refrained from changing the country’s interest rate, because they’ve already removed their currency’s peg to dollar back in May 2007.
This rate change followed the cut by U.S. Federal Reserve decision to lower the rate from 4.50% to 4.25% yesterday on December 11. Gulf countries, such as Saudi Arabia and U.A.E., started to peg their national currencies to dollar decades ago, and they have to maintain the similar interest rates to keep this peg up.
Lowering the interest rates goes against the general monetary policy of the Gulf countries in the way that it stimulates inflation, which is already very high due to the devalued dollar. Fighting inflation is an important task stated by the government of U.A.E. and this rate cut can only boost up the prices growth.
Although this step contradicts anti-inflation policy, it is almost doubtless that such a small rate change won’t hurt a lot. The possibly better side effect of this change would be another reason for consideration of the dollar peg abandonment by these oil countries.

Chilean Peso Hits Nine-Month High on Foreign-Exchange Selling Plan

A Chilean government plan is likely to continue to push the national currency up, as it will sell $40 million daily in the Foreign-Exchange market, boosting confidence for the South American currency.
The Chilean government affirmed in June 15 that a plan for economic stimulus will sell $4 billion dollars in $40 million allotments, as an effort to increase the influx of international assets to the South American economy. The current $4 billion program will follow a previous one which started in March offering daily $50 million in the forex markets. The Chilean peso has been favored since the global slump eased in the beginning of April, which resulted in a risk appetite rally for emergent-markets currencies, and like in Brazil, being Chile an emergent commodity exporter economy, the national currency witnessed sharp gains supported by the new wave of optimism in equities markets.
Economists agree that the Chilean government dollar sell plan is the main factor weighing positively to the national currency, it is likely that as long as plans like this will follow, investors will be confident enough to maintain the Chilean peso at high levels or even increase its gains. High-yielding currencies have been favored by a new wave of confidence on world markets, but since a cloud of confusion started to appear among traders, it is hard to determine whether high-yielding currencies will still continue their present climb.
USD/CLP traded at 538.85 as of 12:24 GMT rising from yesterday’s rate of 551.26.
If you want to comment on the Chilean peso’s recent action or have any questions regarding this currency, please, feel free to reply below.

Canadian Dollar Falls as Stocks Decline

The loonie had a third week of losses as a fall in U.S. stocks and crude oil decreased the attractiveness for the high-yielding profile of the Canadian currency.
Canada is one of the world’s most important commodity producers, and being the U.S. its main exporting destination, a fall in their main stock indexes affected directly the outlook for the Canadian currency. Since signs of economic recovery started to appear two months ago, the price of crude oil and equities market around the world witnessed a sharp increase in their levels, and being the loonie a commodity-linked currency more attractive as risk appetite grows due to its high-yielding profile, it posted the highest gains in 59 years during the month of May following the rally in the crude oil price. As the price of stocks failed to continue its gains, Canada’s dollar entered its third week of losses, since risk aversion rebounded slightly, and commodities prices did not provide the necessary support for the loonie to maintain its high levels.
Economists refer the weak performance for the Canadian dollar also with a more solid outlook for the U.S. dollar, as investors realize that an economic chaos will not be installed in the U.S. and that the Federal Reserve stills in the control of the nation’s finances, the greenback rose, also forcing the Canadian currency further down.
USD/CAD closed the week at 1.1352 after having both high and downtrends during the week but the loonie lost 1.4 percent against from the start of the weekly session.
If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Pound Falls on U.K. Home Prices Drop

The British pound fell against the U.S. dollar as a report indicated the first fall in U.K. home prices in five months, increasing risk aversion towards the pound sterling outlook.
The pound had another day of losses as stocks declined snapping the previous days gains, adding pessimism to the already nebulous equities markets scenario. Rightmove Plc, one of the most relevant British real estate websites, indicated a fall of 0.4 in home prices within Great Britain, being that the first fall in five months, which until now have been witnessing a recovery in the average real estate prices. A part from the negative news in the domestic scenario, the pound also lost ground as currencies like the yen and the U.S. dollar became more attractive to investors as risk appetite decreased this Monday among traders.
The pound outlook, according to currency specialist, is being negatively affected by days of confusion about the global recession, which led to several sessions of losses in stock markets, decreasing attractiveness for the British currency. Domestic reports in the U.K. have not been as positive as expected previously, and the return of demand for refuge currencies like the yen created perfect conditions for a pound downtrend, which may continue further, if equities markets remain bearish.
GBP/USD traded at 1.6440 as of 12:18 GMT from an opening price of 1.6505. GBP/JPY declined to 157.84 from 158.45.
If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below

Brazilian Real World Biggest Loser as Recession Concerns Rise

The Brazilian currency had the worst performance among the most traded currencies, as confused signals about the world economic situation increased risk aversion among traders, which are leaving high-yielding currencies to purchase safer assets.
Different factors pushed the Brazilian currency down this week as risk appetite declined, making stock markets around the world to fall, decreasing the attractiveness of emergent-markets currencies and their high-yielding profile. After a World Bank report indicating that the global recession may be deeper than expected, the already not solid confidence among traders to take significant risks was shaken, making currencies like the Brazilian real and the South African rand to lose against virtually all currencies. The price of oil fail to extend its gains, and being Brazil a main commodity exporter, a drop in commodity prices always weighs on its currency.
Currencies like the yen and the U.S. dollar suddenly became once again attractive due to its safer profile compared to higher-yielding options. The uncertainty about the global recession is once again moving markets sharply, after a significant rally in emergent markets currencies, risk aversion is once again heading investors towards safety, and it will be hard to determine Brazil’s real future, since confusion is big in markets, and overnight reports and decisions can influence traders majorly.
USD/BRL traded at 2.0305 as of 11:33 GMT from a previous rate of 2.0175. EUR/BRL rose from 2.7971 to 2.8348.
If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below.

Table Of Data On Durable Goods From Commerce

The U.S. dollar had a day of weak performance losing ground to currencies like the euro and the Australian dollar as speculations that a report to be released this Wednesday will indicate a decrease in durable goods orders, affecting the greenback outlook negatively.
The greenback lost significantly against most of the major currencies, as today, a durable goods orders reports is very likely to indicate the second fall in three months, decreasing confidence among traders to maintain their positions in the U.S. currency. The main reason behind an eventual drop in durable goods orders is the fact that investment in new equipment is for the moment uninteresting for industries, as uncertainties regarding the global slump still very vivid among different sectors of the economy, and after the restructuring plans for companies like Chrysler LLC and General Motors Corp., the durable goods order can be even more impacted. Despite the negative news, today the Federal Reserve may indicate that the recession might be easing in the United States as the housing sectors shows signs of recovery.
Specialists affirm that durable goods orders will only rebound when solid signs of an increased demand start to emerge among costumers, otherwise, this data is still likely to weigh negatively on the greenback outlook for the upcoming months.
EUR/USD climbed to 1.4085 as of 11:04 GMT, from 1.4015 in the intraday comparison. AUD/USD followed the same trend rising from 0.7895 to 0.7989.
If you want to comment on the U.S. dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Table Of Data On Durable Goods From Commerce

Table Of Data On Durable Goods From Commerce
MAY APR MAR
(Dollar Amounts In Billions)

New Orders for Durables 163.92 161.10 158.28
Percent Change 1.8 1.8 -2.2
New Orders, Ex-Defense 148.95 146.92 146.07
Percent Change 1.4 0.6 -2.4
New Orders, Ex-Trans. 121.73 120.37 119.93
Percent Change 1.1 0.4 -2.8
Primary Metals 11.73 11.70 11.64
Percent Change 0.2 0.5 -9.2
Fabricated Metals 22.67 23.25 22.25
Percent Change -2.5 4.5 -3.0
Machinery 22.47 20.86 20.73
Percent Change 7.7 0.6 -7.3
Computers/Electronics 24.85 24.31 25.06
Percent Change 2.2 -3.0 1.5
Electrical/Appliances 8.09 8.18 8.18
Percent Change -1.1 0.0 0.1
Transportation Equipment 42.19 40.72 38.35
Percent Change 3.6 6.2 -0.1
Nondefense Cap. Goods 53.83 48.94 50.42
Percent Change 10.0 -2.9 -1.0
Defense Capital Goods 12.04 11.21 8.73
Percent Change 7.4 28.5 -11.1
Durable Goods Shipped 169.89 173.47 174.42
Percent Change -2.1 -0.5 -1.9
Unfilled Orders 747.50 749.49 757.69
Percent Change -0.3 -1.1 -1.7

(Changes are increases unless preceded by minus sign.)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=iroWVn2ql0zCzhe22hBLeg%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones NewswiresJune 24, 2009 08:30 ET (12:30 GMT)

Yen Down After OECD Revealing Forecast

The Japanese yen, often associated as the best performing currency in times of crisis due to its refuge investment profile, lost today as the OECD predicted an unexpected growth to its member countries, spurring demand for high-yielding assets.
The Organization for Economic Cooperation and Development stated today that its 30 member nations are expected to grow 0.7 percent next year, after a decline forecast of 4.1 for 2009, an affirmation which despite the negative numbers for the current year rose investors confidence to purchase higher-yielding assets this Wednesday in equities and currencies markets. Currencies like the Norwegian Krone, highly associated with the crude oil rates, and the Australian dollar led the gains versus the yen, which after days of tension in stock markets, had a considerable rally in the beginning of the week. The greenback was one of the few currencies that lost against the yen, as today it is very likely that a report will indicate another drop in durable goods orders in North America.
The yen is in the hands of the risk appetite levels, according to currency strategists. Currently without any expected data from that Asian nation indicating any economic movement other than the already expected, the Japanese currency is being moved by investors confidence and the waves of risk aversion and appetite. It is hard to determine what direction the yen will follow, until the equities and commodities markets define a pattern.
AUD/JPY traded at 76.18 as of 12:19 GMT rising from 75.05. GBP/JPY rose to 157.62 from 155.55.
If you want to comment on the Japanese yen’s recent action or have any questions regarding this currency, please, feel free to reply below.

US Dollar further gains

The US Dollar lastly indicated marks of an important revival and probable bottom in opposition to the Euro and other major currencies on an evidently action-packed week of trading. Better than anticipated, Non Farm Payrolls outcomes and a comparatively stable flow of positive economic blows caused a lot of enthusiastic analysts to state that the economic catastrophe is done, but most likely, this kind of statement is exaggerated. Non-Farm Payrolls went down considerably less than anticipated in May and at the slowest rate in 8 months, but some viewpoint is noticeably in order.Since the beginning of the economic slump in December, 2007, US unemployment figures have gone up by an shocking 7.0 million—undoubtedly the worst decline since the Second World War A marginal boost in the labor market participation rate the same pushed the headline jobless rate to a quarter-century high of 9.4 %

Risk appetite effecting on US Dollar

Scheduled event risk is going to moderate even further over the coming week – an unstable situation considering the dollar and most of its major pairings are on the edge of a breakout. Are needs of concrete, essential fodder stop the market from locating direction? Current history has indicated that it isn’t pointers like NFPs or Fed rate conclusions that identify revitalize or overturn trends; but conjecture surrounding the financial health of the US economy and wide risk sentiment. The most instant risk to constancy is G8 conference that is being held this weekend. Finance Ministers from the US, UK, France, Germany, Italy, Japan, Canada and Russia have previously met on Friday in Lecce, Italy; but the comments so far has been comparatively protected.

Euro: the way to recovery

Are the indications of development in the Euro Zone by now so intense that the government is not able to begin excluding is monetary spur and the ECB start talking about rate hikes or not. Although they are keeping their sense of concern, apparently the region’s finance ministers are to be leaning this way, and even a small bend from official can be interpreted into firmness by speculators. Examining the eminent week, there is abundance of economic fodder on the docket – and most of it is powerful enough to ignite instability and change timing on the ultimate economic upturn. But the actual fundamental theme is going to be in formative whether policy officials’ fortitude to ease a recovery is creditable or setting the economy up for another catastrophe should the rebound collapse.

US Dollar Consolidation keeps on going

The US dollar finished week up against almost all of the majors, except the British pound and Japanese yen, but the currency actually did little but combine. Looking to the DXY index, one can indicate that the US dollar dropped on Friday was eventually advocated by an increasing trend-line around 80 linking the June 3 and June 11 lows. With struggle threatening just up at 81.35, this period of tense range-bound trade gives the currency at risk to breakouts this coming week, particularly since there is going to be quite a bit of event risk on hand from the US. On Tuesday, the National Association of Realtors (NAR) is expected to give details on that existing home sales went up for the 2nd straight month at a rate of 2.6 % in May to a yearly speed of 4.80 million from 4.68 million.

Last week Forex Trading speculations

It was a volatile yet direction less period for the USD last week. With only a smattering of second tier economic indicators populating the docket, basic traders deferred to dramatic swings in commodity rates, mounting fears of a major bank collapse (someone mentioned Freddie Mac?) and ever-exigent and evolving interest rate speculations. Although, these market themes were hardly fall back drivers as we have seen the USD push right back towards major resistance with traders on both the technical and basic side of the fence waiting for each of these pieces to fall into place before confidence in the greenbacks' dominate trend is revived and it's here to stay. No doubt, these market dynamics and USD volatility will play just as active as they have been in the one that has just passed.A few major currencies sure fixed the rate a bit (EUR: +0.7%, Yen: +0.4%, CAD: +1.2%) and some like GBP still very bearish and will continue be bearish next week according to most analysts suspects.

Commodity Currencies Back To Interest Rates

Main commodities were increasing throughout the active New York session Monday. Whilst the Australian, New Zealand and Canadian dollars were surely boosted by the 7 % progress in oil and 2.3 % rise in gold; the increase in natural resources was minor to the broader development in risk appetite. But similar to the rebound in risk appetite, the increase in these majors apparently is not going to last. Event risk today indicated that housing prices in New Zealand dropped 6.8 % in the year throughout November, same as the record dropping from the prior month. The continuing fall only confirms the RBNZ’s policy attempts until now have not achieved much to recover credit situations and consumer sentiment in New Zealand.

New Zealand Economy

Reserve Bank of New Zealand Governor Alan Bollard said today, "We anticipate the market to start expanding again toward the end of the year.” In spite of this first optimism increase is about to be slow and extended and it may as well be unpredictable, he concluded.The announcement comes just nine days previous to Q1 gross domestic data is anticipated to indicate that the economy contracted for a 5th straight quarter. With exports from the country fall 17.4 percent in January, but with exports going up 6.26 percent in the 1st 3 months of the year, Q1 GDP might not be as awful as the last released data indicated. This examination differentiates the outlook of New Zealand's Finance Minister Bill English, who previously stated that his country's export division had been and is going to keep on experiencing the severe condition.

Introduction to Forex Trading

FOREX is the world’s largest and most liquid trading market. In our opinion ,FOREX is one of the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for speculations (in the same way banks and large corporations do) since 1998, it is just now becoming the cool, hip, new "thing" to talk about at parties, business events, and other social gatherings.
Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading because of what they perceive as its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.
But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind has to be open and the slate has to be clear for starting out fresh with the CORRECT information.
So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what the heck "FX" (FOREX) means, what it is, and why it exists.
Here's an explanation (one I feel you'll appreciate) of what FOREX is and how a bunch of traders, operate in this market
The Foreign Exchange Market, also referred to the "FOREX" or "FX" market, is the spot (cash) market for currency.
But, don't mistake FX as trading the futures market, where you buy a contract to purchase a particular currency at a future price in time.
So, you're probably wondering where it's at ... or ... how to access the FX market?
The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.
Yes, if that's the first time you've heard about an all-electronic market, I know this may sound somewhat intriguing to you.
Here's what you are actually trading when you participate in the Foreign Exchange (FOREX) market:
Essentially, like the large banks who use the FX market to protect themselves from the fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is simultaneously exchanging one countries currency for another. So, in actuality, they're electronically trading a currency-pair and the price that is quoted to us is the exchange rate between the two currencies.
In other words, simply the quoted price is how many of the one currency is worth 1 of the other currency.
Example:
EUR/USD last trade 1.3680 - One Euro is worth $1.3680 US dollars.The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.
The FOREX has a DAILY trading volume of around $1.5 trillion dollars - 30 times larger than the combined volume of all U.S. equity markets.
The FOREX plays a vital role in the world economy and there will always be a tremendous need for the FOREX. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Japan can sell products in the United States and be able to receive Japanese Yen in exchange for US Dollar.
There's plenty of opportunities using FOREX for plenty of traders that use the right trading techniques / tactics that will allow them enter this market.
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The goal of Forex4asia team is to provide Maximum exposure and Maximum Trading Oportimotoes in the Currency Market to our investor through opening individual accounts traded by professional of Forex4asia team's managers. We will only get 50% profit which we earn in your account on monthly basis. You can open an account from our web site to click Individual Account or Mini Accounts. We are ready to serve our investor/client in best manner.
Forex4Asia is Giving Effecient & Different Services Forex4Asia has very trained and experienced team members. They are doing Currencies business since last 10 years and have gained a lot of experience. Here is a little difference which our Client gain during the previous month on little investment.So Become a Member and get more services to improve your Trading.
*“The Views and opinions represented in the provided website links and resources are not controlled by the introducer or the FCM. Further, the introducer and the FCM are not responsible for their availability, content, or delivery of services.”*
Note:- These profit/loss are not confirmed these can be increased and these can be convert into loss. Because this is very risky market. Forex4Asia is not responsible for any loss during trading client will loss. *“The Views and opinions represented in the provided website links and resources are not controlled by the Referring Broker or the FCM. Further, the Reffering Broker and the FCM are not responsible for their availability, content, or delivery of services.”*

UPDATE: UK CBI: Retail Sales Remain Weak In June

UPDATE: UK CBI: Retail Sales Remain Weak In June (Adds detail, economist comment.) LONDON (Dow Jones)--The volume of sales at U.K. retailers remained weak in June, fueled by sharp drops in household goods sales and clothing, the Confederation of British Industry said Wednesday. The CBI's Distributive Trades Survey reported the retail sales balance was unchanged at -17 in June from May. The balance is the difference between the percentage of retailers reporting higher sales and those reporting lower sales. The survey was a touch weaker than expected. Economists surveyed by Dow Jones Newswires were forecasting a balance of -16. "The June CBI distributive trades survey was in line with expectations, indicating that consumers are modestly more prepared to spend compared to earlier this year, but are still pretty reluctant to splash out," said Howard Archer, an economist at IHS Global Insight. A breakdown of the survey showed sales of groceries and furniture continued to increase in June. However, there were more marked falls in sales of goods related to the weak housing market, while chemist and clothing sales also declined. "June's weak sales figures show that business on the high street isn't getting any easier," said Andy Clarke, chairman of the CBI's distributive trade panel. "It is too early to foresee a sustained pickup in retailers' fortunes over the coming months," he said. The CBI figures chimed with official May data published Thursday, which showed retail sales volume fell a larger-than-expected 0.6% on the month and 1.6% on the year, driven by poor sales of clothing, footwear and department store sales. Looking ahead, the CBI survey of 146 firms between May 28 and June 10 showed a balance of -21 of retailers expecting higher sales in July. The U.K. slipped into recession in the middle of last year as a result of the global credit crisis. It posted its biggest quarterly contraction of gross domestic product for 30 years between January and March this year, although economists say that is likely to be the most severe phase of the downturn. -By Joe Parkinson, Dow Jones Newswires; 0207-842-9291; joe.parkinson@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=iroWVn2ql0zCzhe22hBLeg%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones NewswiresJune 24, 2009 06:57 ET (10:57 GMT)Copyright 2009 Dow Jones & Company, Inc.

UK Brown: UK Open To New Sanctions Against Myanmar

http://www.djnewswires.com/eu

UK Brown: UK Open To New Sanctions Against Myanmar LONDON -(Dow Jones)- U.K. Prime Minister Gordon Brown reiterated Wednesday that his government would tighten sanctions against Myanmar over what he called the "sham trial" of opposition leader Aung San Suu Kyi. "At the last meeting of the European Council we sent a very powerful message that unless action is taken in Burma to free Aung San Suu Kyi, then we are prepared to take further sanctions against the regime," Brown said in the weekly question and answer session in parliament. Brown also called on U.N. Secretary General Ban Ki-Moon to visit Myanmar. The prime minister said the actions of the Myamnmar regime were "completely unacceptable." -By Laurence Norman, Dow Jones Newswires; 44-207-842-9270; laurence.norman@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=iroWVn2ql0zCzhe22hBLeg%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones NewswiresJune 24, 2009 08:00 ET (12:00 GMT)Copyright 2009 Dow Jones & Company, Inc

The euro finished the week down against the US dollar, but the bulk of the pair’s decrease happened on Friday after the introduction of better than an

The US dollar and Japanese yen both dropped low on Monday, although the yen was the weakest of the majors, as investor sentiment kept on building in spite of the fact that General Motors Corp. filed for bankruptcy protection predictably, presenting $82.3 billion in assets and $172.8 billion in debt, with the US government put to hold a 60 % stake in the new entity by exchanging the volume of its $50 billion worth of loans. Risk appetite was so heavy that the DJIA rallied 2.6 % for a test of its 200 SMA at 8765 whilst the S&P 500 as well went up by 2.6 %, to break over its 200 SMA at 927, but closing under its previous 2009 high of 943.85.Reviewing the day’s US fiscal data, the Commerce Department stated that personal earnings increase went up by 0.5 % throughout April, but with the savings rate at the present went up to a 14-year high of 5.7 %, private expenditure went down negative for the second consecutive month at a rate of -0.1 %.

Possibility of Euro to decline further

The euro finished the week down against the US dollar, but the bulk of the pair’s decrease happened on Friday after the introduction of better than anticipated US non-farm payroll outcomes. EUR/USD fell around 200 points and finished under trend-line and psychological support at 1.4000, indicating that from a technical viewpoint, supplementary decrease might be coming up for the pair. There is as well probably for EUR/USD decrease from a basic viewpoint considering the European Central Bank’s (ECB) latest conference. The ECB left rates unmoved at one %, and ECB President Jean-Claude Trichet’s succeeding press meeting at first provided some support for the euro, since he described existing rates “appropriate” and stated that latest data indicates that the Euro-zone slump can have hit the bottom throughout the preceding 2 quarters.

The situation of financial system and the credit market

If the world branch out out of the US dollar or not and the liquid assets that it backs are the questions. Is it possible? More prominently, is it wise taking into consideration the still-delicate situation of the worldwide monetary markets? These are the questions market members have raised for the American currency throughout the past week. Whilst it is not extraordinary to hear officials from rising nations make statements on the need for a supranational currency to release them from the risk of the US dollar; there has been small movement to propose that this attempt would start soon. Lately thought, Russian central bankers have revealed their aims to decrease their holdings of treasuries to potentially fund their plans to buy $10 billion in bonds from the IMF.

US Dollar Gains

The US dollar was in general strong on Wednesday, although the currency dropped in opposition to the Australian dollar and British pound, as Treasury prices pushed, sending yields up. Indeed, the yield on ten-year notes reached an intraday high of 3.99 %. This was the highest so far since October 2008 following the Bank of Russia first delegate chairman Alexei Ulyukayev stated that they would change some of their reserves from Treasuries to International Monetary Fund bonds. The statements reflect those of China, which has stated that it is enthusiastically considering purchasing as much as $50 billion of the IMF bonds, whilst Brazil’s Finance Minister Guido Mantega stated that they are going to buy $10 billion worth of IMF bonds.

Euro technical estimate

A dreary week of European financial data and likewise monotonous price movement in the S&P 500 left the Euro/US dollar exchange rate more or less unaffected during the past week’s trade. Early-week EUR/USD losses at first indicated that the pair was probably to keep its lately sharp downside reversal, but markets rejected to let the formerly high-flying pair under significant lows of 1.3800. The following rally higher dropped short at also significant Fibonacci resistance at the 61.8 % retracement of the 1.4340-1.3800 action at 1.4130. A need of major market-moving developments would maintain the struggle between bulls and bears at its existing deadbolt, and it is hard to forecast what could really break the EUR/USD further than its current trading range.