Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Positive Corporate Eearnings Reports Boost U.S. Dollar

Currencies / US Dollar Jul 22, 2010 - 03:08 AM GMT

By: LiveCharts

Currencies

The dollar has been getting hammered in recent weeks as renewed concerns about the economy caused many to get out of long dollar positions.  However, several positive earnings reports to start the week have helped give the greenback a boost against most major currencies.


The euro has slipped back to $1.2801 after briefly topping $1.30 early in Tuesday’s (July 20) currency trade.  The euro had been on a swift moving upward trend against the dollar with around 12 pips gained since its low below $1.19 in early June.

Britain’s Bank of England opted to maintain a half-per cent interest rate policy when it concluded its meeting in the early morning (New York time).  The British Pound has been more stable in spite of wild swings in the euro-dollar ratio the last few months.  Britain has not been faced with the rampant credit issues many European Union members have faced.

The Pound is currently fetching $1.5213, down from its recent high Tuesday of $1.5340.  Still, it remains near the high end of its recent trading range against the US dollar.  The Pound has been on a fairly steady uptrend against the buck since it dipped as low as $1.43 in mid-May.

With unemployment and housing concerns taking focus in the last few weeks, the dollar has slipped overall as concerns remain about the US economy.  These lingering issues have led to restatements by Fed officials that an extended period of low to no interest rates is likely to continue for some time.

Positive earnings reports from companies including top banks US Bancorp and Wells Fargo, have provided a spark midweek, which has helped the dollar fight back modestly in early Wednesday speculation.

The dollar remains quite vulnerable against its Japanese yen counterpart.  One dollar is currently netting 87.04 yen.  This puts the buck curiously close to its recent historic low against the yen at 85.365.  Mounting dollar concerns combined with seemingly better prospects for a quick recovery in Asia have contributed.

There is still no clear long-term direction for the dollar based on fundamentals.  The only thing that is certain is that there has not been enough overwhelmingly positive evidence to keep the dollar moving in a positive direction.  More positive earnings reports combined with some semblance of hope on the employment and housing fronts are key.

Neil Kokemuller

LiveCharts.co.uk

Neil Kokemuller is an Associate Professor of Marketing at Des Moines Area Community College in Des Moines, Iowa, USA. He has a MBA from Iowa State University. He is also in house stock market commentator at Live Charts UK, where you can find real time charts and share prices .

Copyright © 2010 Live Charts

Please note: The information provided in this article is intended for informational and entertainment purposes, and not as advice for financial decisions or investments. Actions taken on the basis of the information shared is at the sole risk and discretion of the individual. Currency investment poses significant risk of loss.

Live Charts Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in