Press Release Summary: After the slow down in the global stock market most of the investors rallied towards the US dollar letting the dollar rise to a high level. On the other hand the dollar also raised against its European counterpart on account of a decline in the US stock markets
Press Release Body: After the slow down in the global stock market most of the investors rallied towards the US dollar letting the dollar rise to a high level. On the other hand the dollar also raised against its European counterpart on account of a decline in the US stock markets. A negative response from the corporate trade, and the economic concern for recession, which lead investors run towards the greenback
As against the yen, the dollar strengthened to a considerable level on account of rising equity markets above the expected sentiment index reading for January. The recovery of stocks in Asia is prompting traders to get back to the risky trading. But still the USD is under stress and there have been expectations for 50bp rates cut on the upcoming federal meeting on 30th January. As notified by the forexwebtrader after an unforeseen fall in the UK retail sales during last month sterling fell 0.5% against the USD. The detail analysis can be reviewed at www.forexwebtrader.com . On the other hand the Canadian dollar went high against the greenback on account of rebound in the equity markets.
On account of fears in the world's biggest economy, the stock market across the world collapsed yesterday and there are stretching losses today in the Asian trading. Yen have been to a multi month highs against its major counterparts during the early Asian trading as being the only country providing cheap credit finance from where the investors can easily borrow at cheap rates and can invest it to high yielding assets. This unwinding trade pushes up the worth of Japanese currency.
The gold drops to a two week low on account of a slow down in the stock market which collapsed yesterday, driving gold to a level 1.6% down. The investors have turned towards the stocks parting from gold investment. This drop in the stock market have however, compelled the central banks to decline their interest rates below the targeted. This slow down in the stock market has, driven more funds into the government treasuries pushing the yields below the current inflation rate. On the other hand the Japanese investors have been switching on to the gold on account of its drop in worth since Christmas Eve
The Forex reserve in China is expected to rise to a substantial level in 2008 in spite of a slowdown in trade, on account of progress in the upcoming markets, which can induce the capital inflow to the economy and will assist the country's foreign exchange reserve to reach to a higher level as compared to the previous year. Even though the China's stock has been less fascinating in front of a global economy, particularly when US sub prime mortgage crisis which can initiate the recession in the economy, there have been emerging opportunities in china that can take the flow towards the economic development, it can be concluded that more inflows can fuel China's economy to the path of development.
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