| Daily Forex Fundamentals | Written by Finotec Group | Jul 28 08 09:15 GMT | | ||||||||||||||||||||||||||||||||||||
| The greenback traded near a one-month high against the yen after Congress passed legislation to prop up Fannie Mae and Freddie Mac, the two largest providers of U.S. mortgage financing. The currency was also near a three-week high versus the euro on speculation a government report this week will show the U.S. economy expanded last quarter at more than twice the annual pace of the prior three months. The U.S. Congress sent to the president legislation to stem foreclosures for 400,000 homeowners and aid Fannie Mae and Freddie Mac its most sweeping effort to halt the biggest housing slump since the Great Depression in the 1930s. President George W. Bush will sign the measure into law, a spokesman said. The dollar rose to a high of 108.10 yen, the highest level since June 26, now currently trading at 107.69 yen as of 7:42 am, GMT. German consumer confidence fell to the lowest in more than five years as rocketing energy prices sapped purchasing power and the economic outlook deteriorated. Record oil and food prices pushed inflation in Germany to 3.4 percent last month, squeezing disposable incomes just as the euro's gains and a deepening U.S. housing slump curbed demand for exports. Business confidence fell the most since the Sept. 11 when investor confidence dropped to a record, signs growth is faltering in Europe's biggest economy. 'Along with fears of high inflation, many Germans are concerned that there will be a more marked cooling of the economy than previously anticipated,' GfK said. 'News from the U.S. of the continuing gloom in the financial markets support these assumptions and not least, the continuing high value of the euro represents a hazard to exports.' The EUR/USD is currently trading at 1.5706 as of 7:46 am, GMT. The sterling fell against the euro and the dollar after a private report showed U.K. house values dropped in July by the most in at least seven years. 'This is more bad news coming out of the housing market and adds to the growing sense the economy is slowing,' said Grant Lewis, the London-based head of fixed-income research at Daiwa Securities SMBC Europe Ltd. 'That puts a bit of downward pressure on sterling given the expectation of rate cuts.' The average cost of a residential property in England and Wales slipped 4.4 percent from a year earlier, Hometrack Ltd., a London-based research company, said today in a statement. That's the biggest annual drop since the index started seven years ago. Prices fell 1.2 percent from June. The GBP/USD is currently trading at 1.9849 as of 7:53 am, GMT Economic Calendar
Finotec Group Inc. Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein. | ||||||||||||||||||||||||||||||||||||
Monday, July 28, 2008
Dollar Trades On A High After Bad German News
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