Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Bubble 2025 - 11th Feb 25
Fed Interest Rate Cut Probability - 11th Feb 25
Global Liquidity Prepares to Fire Bull Market Booster Rockets - 11th Feb 25
Stock Market Sentiment Speaks: A Long-Term Bear Market Is Simply Impossible Today - 11th Feb 25
A Stock Market Chart That’s Out of This World - 11th Feb 25
These Are The Banks The Fed Believes Will Fail - 11th Feb 25
S&P 500: Dangerous Fragility Near Record High - 11th Feb 25
Stocks, Bitcoin and Crypto Markets Get High on Donald Trump Pump - 10th Feb 25
Bitcoin Break Out, MSTR Rocket to the Moon! AI Tech Stocks Earnings Season - 10th Feb 25
Liquidity and Inflation - 10th Feb 25
Gold Stocks Valuation Anomaly - 10th Feb 25
Stocks, Bitcoin and Crypto's Under President Donald Pump - 8th Feb 25
Transition to a New Global Monetary System - 8th Feb 25
Betting On Outliers: Yuri Milner and the Art of the Power Law - 8th Feb 25
President Black Swan Slithers into the Year of the Snake, Chaos Rules! - 2nd Feb 25
Trump's Squid Game America, a Year of Black Swans and Bull Market Pumps - 24th Jan 25
Japan Interest Rate Hike - Black Swan Panic Event Incoming? - 23rd Jan 25
It's Five Nights at Freddy's Again! - 12th Jan 25
Squid Game Stock Market 2025 - 5th Jan 25

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

U.S. Dollar Gains Against Major Currencies and Commodities

Currencies / US Dollar Jan 27, 2010 - 04:14 PM GMT

By: LiveCharts

Currencies

dollar has grown stronger to start this week, gaining ground against most major currencies and commodities, the Japanese yen, being the prominent exception.

The gold price spot rate is at $1,091, after a Tuesday New York Mercantile Exchange close just below $1,100. The gold rate is well below its all time high of $1,218.25 near the end of 2009.


Oil prices actually climbed a bit Wednesday morning to $75 after a Tuesday New York settle price of $74.71. Investors are waiting for the latest report on US inventory levels. Oil has been kept in check partly based on the firmer dollar, but also based on a lack of growth in oil and gasoline demand by consumers and businesses.

The major European currencies symbolize the affect the dollar has had on its global currency counterparts of late. One Euro is currently worth $1.4036. This is down nearly five pips from its 2010 high above $1.45 on January 11th, and well below the $1.51 level at the start of December.

The British Pound has held up better against the greenback with more narrow up and down range trading. A Pound is currently fetching $1.6183. This is well off the 2009 high over $1.70, but the Pound has shown more resistance against a dollar unwind compared to other currencies.

The current change of direction in the currency market is typical. Currencies tend to trade directionally over a period of time until major economic drivers and catalysts dictated a reversal. The dollar was beaten down so badly for much of 2009 that general sentiment that the economy is improving relative to the global market has prompted speculators to jump out of negative-dollar positions.

There have been some pullbacks in the dollar-positive trend of recent months, but overall, the dollar has been making headway against most major currencies. The yen has been a notable exception as the Japanese economy has been moving somewhat parallel to the US, with similar interest rate policies.

A dollar is back below a 90 yen value. Whichever Central Bank moves to increase rates more quickly is likely to drive direction in the near term for the dollar-yen pair. The Fed appears more likely to act in this manner sooner based on comments from Bank leaders.

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