- Analytics
- News and Tools
- Market News
- FOREX: Weekly's review
FOREX: Weekly's review
The Senate and President Obama approved the legislation plan to hike the U.S. debt limit at the last minute. If the deal hadn’t been passed by Aug 2, the US might have been faced a technical default and lost its AAA debt rating immediately. However, the risk of downgrade remained real.
The approved legislation plan of cutting federal spending by $2.4 trillion triggered worries about prospects of the world's largest economy.
Market participants also concerned as reports on US macroeconomic statistics have showed the worst figures during a long time, including weak July data on manufacturing and non-manufacturing indices from ISM.
On Friday the dollar declined versus a majority of its most-traded counterparts as U.S. employers added more jobs than forecast in July and the unemployment rate fell, damping demand for refuge.
The European currency also suffered substantial losses amid worries about EU debt crisis. ECB President Jean-Claude Trichet acknowledged a “particularly high” level of uncertainty said inflation expectations “must remain firmly anchored.” He said the ECB will offer banks additional cash as the region’s debt crisis spreads increasing pressure on policy makers to resume bond purchases. Widened spread between Italian, Spain, French and Belgium bonds and German 10-year bonds fueled concerns about EU debt crisis.
On Friday the euro began to rebound after news that the ECB is willing to buy Italian and Portugal bonds if Italy advances reforms.
The Canadian dollar shed to the lowest level over 5 weeks amid declining crude oil prices, Canada’s biggest export.
Switzerland’s franc reached new life-time highs several times this week as “save haven” amid weakness of the dollar and the yen. The franc’ rise has been curbing as the Swiss National Bank said it won’t exclude any measures to curb the currency’s advance.
The Japan's yen strengthened against the US dollar, but its increase also was curbed by the nation’s central bank. The Bank of Japan expanded its asset-purchase fund to 15 trillion yen ($189 billion) from 10 trillion yen and left the benchmark interest rate unchanged at the level of 0-0.1%. However, the currency erased the effect of Japan's yen-selling intervention nearly by half at the turn of the week.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
