Forex online Reviews: Dollar Gains as Credit Fears Subside

 

USD Moody’s, one of the major credit rating agencies affirmed the Dollars “AAA” status “despite rising national debt” on Wednesday, sending the Dollar higher against most majors as credit worries eased.  Also, on Wednesday, a regional Federal Reserve president had said that the Chinese informed him they were “concerned” over the US’s rising debt in a meeting held last week.  Richard Fisher of the Dallas Federal Reserve in Texas said the primary concern of the Chinese is the Federal Reserve, the US’s Central Bank, financing spending by the treasury department which essentially amounts to printing money.  While China is worried about hyperinflation, analysts agree that at this time the US economy is slightly deflated.
However, data released late in the session in online forex market showed that the inventory of unsold homes had increased in the US, stoking fears that home prices will continue to fall next month.  The news dropped the dollar off of its highs and moved it negative against the Sterling.
At 11:45PM GMT, the Dollar was up .8% to the Euro to 1.3874, up .25% to the Japanese Yen to 95.26, down .45 to the British Pound to 1.5985, up .3% to the Canadian Dollar to 1.1194, up .5% to the Swiss Franc to 1.089 and up .1.13% to the Australian Dollar to .7775.

 

EUR A European Central Bank governor, Erkki Liikannen, said on Wednesday that interest rates could fall further if economic conditions worsen.  This turned the Euro negative on the day against many currencies as investors feared the currency’s valuation was worsening.  Analysts have said that the 1.40 mark on the EUR/USD has been a stubborn ceiling and that this time around, if the data continues to come out negative, the Euro could have a hard time climbing back towards that level.
At 12:05AM GMT in Daily FX, the Euro was down .5% to the Yen to 131.78, down .3% to the Sterling to .866, down .1% to the Canadian Dollar to 1.5523, and down .1% to the Australian Dollar to 1.7822.