Broker Trading Updates - Currency Analysis

Tuesday, February 24, 2009


Concerns over banks in jeopardy of going under and global economic concerns spurred the US Dollar on Friday against the Euro and the Sterling. In a day that saw the US Stocks fall to a nearly 10 year low and capping a week that saw a sharp decrease in global equity prices, the greenback fell to the European currencies. Despite Friday’s rough patch, the USD is still widely believed to be the only safe-haven currency left.

Against the Euro, the dollar lost 1 ¼% to 1.2824. Versus the Pound, the Dollar fell 1% to 1.4432.


The Bank of Japan (BOE) announced on Friday that the decline in corporate profits has continued to increase at a rapid rate and that the overall economic situation was deteriorating steadily. Japanese economic problems have driven investors from the Yen, long seen as a safe-haven in times of economic distress because of its stability, and this trend continued last week. While the Yen did make some marginal gains on Friday, it was widely seen as profit taking from short-term investors.

At Friday’s close, the Yen rose slightly to the US Dollar to close at 93.32, down 1/3rd to the Euro at 119.72. Down slightly to the GBP at 134.69 and up ¾ against the AUD to 60.23.


The Euro had a decent day on Friday for a currency that has seen better times. Fears over the decline of Eastern European nations plagued the currency all week and it seems as if traders gave them a reprieve on Friday. While the European Union continues to field downgrade warnings from Moody’s and Standard & Poor’s over the financial viability of its Eastern members, the ECB is under pressure to find a way to stop the bleeding.

Versus the Pound, the Euro rose ¼% to .8884. Against eh Canadian Dollar, the Euro gained ¾% to close at 1.6058 on the week. The Euro also picked up a bit to the AUD at .6452 and the Kiwi to .5113. Capping the day, the Euro also gained 1/3rd of a percent versus the Yen to close the week off at 119.72.

Gold Chart – The most profitable investment in the past three months

Gold has been making the headlines lately as the standard by which all currencies were once valued at has gained more than 20% since mid-November. Gold, not too long ago valued in the two-three hundred Dollar range has been the recipient of much investor interest as they try and find a stable, recession-proof home for their investment dollars and savings. Gold is about to hit a monumental mark, closing in on a $1,000 closing price. Many traders believe that Gold is overvalued at this point and is benefitting from inexperienced and misinformed private investors.

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