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 %