The dollar fell against the major currencies Tuesday as new data showed that American consumers curbed their spending at a rate unseen in 28 years, while a survey showed German consumer confidence improving slightly despite the wider economic gloom.The 15-nation euro bought $1.3022 in late New York trading, up from the $1.2877 it bought late Monday. The pound jumped to $1.5440 from $1.5115, while the dollar fell to 95.65 Japanese yen from 96.85 yen.
Both the Dow Jones industrial average and Standard & Poor's 500 index rallied for a third straight session Tuesday as investors were encouraged by government plans to help unfreeze credit markets. The U.S. Treasury Department and the Federal Reserve said they planned to provide $800 billion to aid consumer lending companies and to make mortgage loans cheaper and more available.
The dollar has tended this fall to move in the opposite direction from stocks. As equities plunged, the dollar has gained on the euro and the pound.
An updated reading on the economy's performance released by the Commerce Department showed the gross domestic product shrank at a 0.5 percent annual rate in the July-September quarter. American consumers slashed spending in the third quarter at a 3.7 percent pace. That was deeper than the 3.1 percent cut initially reported and marked the biggest reduction since the second quarter of 1980, when the country was in the grip of recession.
Also Tuesday, the Standard & Poor's/Case-Shiller U.S. National Home Price Index showed that home prices have tumbled to levels not seen since early 2004.
"This data shows the beginning of a technical recession which is likely to get worse before it gets better," said Michael Woolfolk, senior currency strategist at the Bank of New York Mellon Corp. "We anticipate that the dollar is likely to continue to suffer over the next several trading sessions."
Germany's GfK research group reported a third consecutive small increase in its monthly index of German consumer confidence, despite the country's recent fall into recession. It said consumers' income expectations were boosted by falling oil prices and a recent industrial wage deal. Meanwhile, the country's Federal Statistical Office confirmed an initial estimate that the economy -- Europe's biggest -- contracted by 0.5 percent in the third quarter.
In other New York trading, the dollar bought 1.1878 Swiss francs, below 1.1988 francs late Monday, and fell to 1.2282 Canadian dollars from 1.2377.
ForexGen Open Demo Account
ForexGen provides its traders with a free Forex demo account where the trader is allowed to participate in Forex trading with real market conditions and get used to the Forex trading employing ForexGen professionalized online trading platform. A Forex demo account permits the trader utilize the advantages and the benefited features provided by our online trading services. The trader must enter a valid e-mail address to freely open a demo account. You will be able to upgrade to Live Account at any time with minimal efforts.
ForexGen demo account advantages:* Innovated trading with no request for a quote for up to 200 lots (20 million).
* The client is provided by a simple system with included options that are easily grasped and used.
* Real time prices are usually modified and provided.
* ForexGen provides Real time charts with the most famous indicators.
* Daily reports for the account status.
* Summarization of the current client's orders, account equity, profit and loss ranging.
* Exclusive technical analysis provided daily to your mailbox in the Trading Platform. The trading real time technical analysis by Capital Management is sent daily to the trader’s mail
* Streaming News headlines are supplied by AFX News.
* The ability to form the traders own strategies using the Expert Advisor. Available for real accounts upon written request
No comments:
Post a Comment