USD

The Federal Reserve kept interest rates at current levels, but extended the long-term debt purchasing program, to the tune of $300 Billion.

The move helped vault the higher yielding currencies in a display of venture appetite and gave warn to traders who were thinking that every was well in the US economy.

While the Fed did say that the situation was much improved, and essentially gave no negative economic comments, the fact that they are extending the bond buying program signals that the US frugalness is still vulnerable and at venture of turning negative very quickly.

In the past few treasury sales, the Federal Reserve has been the primary bidder, essentially printing money in order to accomplish the purchases. The US economy, according to many analysts, is at venture if inflation as a termination of the battleful spending and debt issuance. Year to date, the US debt has increased by $1.27 Trillion in the fastest and most expensive spending spree on record.

At 3:00AM GMT, the US Dollar was downbound .25% to the Euro to 1.4221, downbound .22% to the British Pound to 1.6507, downbound .15% to the Canadian Dollar to 1.0895, downbound .4% to the Australian Dollar to .8361, downbound .35% to the New Zealand Dollar to .6737 and downbound .16% to the Swiss Franc to 1.0763.

Other news…

Norway’s bicentric slope held rates at a record low, but opened the door for increased borrowing costs sooner than expected as the frugalness continuing to recover.

Chinese stocks sank on weekday on fresh worries that this year’s justness rally was running aweigh of an economic recovery and slope lending was showing signs of cooling.

There are no major economic reports or data today, so Forex trading should be convergent still on yesterday’s reports.

Back from vacation and it looks as if the momentum has shifted absent from the Dollar. Don’t say I did not warn you all. The problem is, and it was evident in my last few posts before I embarked on week’s respite, that every these officials, also famous as politicians, are making big and brave statements that are not based by fact.

Two weeks past had I said to you that the unemployment situation in the US was bad and getting worse you might have laughed – after every the initial drawing two Thursday’s past were great, inferior grouping were filing for unemployment.

But, as you look back I did verify you this – and this past Thursday we saw what happens when you calculate your chickens before they hatch.

If you were not watching the numbers, let us just say that they were not pretty. From the mid-200,000’s to the mid 500,000’s in new filers for unemployment – the large drop took everyone by surprise.

And if we were to focus on the retail sales, dropping same a stone – or on the consumer confidence, nonexistent – or on the durable goods orders , flat – what is the bright spot for the US Dollar right now? Only ten life ago, Ben Bernanke, Timothy Geithner and president Obama were touting how they ransomed the US economy – how And from what? I must ask.

While the rest of the world seems to be crawling out of recession (see France, Germany, Australia and New Sjaelland and most recently this morning, Japan), the US is still in deep trouble.

Not that I buy the GDP drawing from those countries just yet – the Eurozone is still in bad shape, England is having problems and Nihon is too reliant on exports to feel that safe yet.

Forex traders and Forex online enthusiasts are confused by every this and the trading patterns of these currencies prove it.

I said this before and I will say it again, go with your cord – do not believe everything you hear from a open official – read the drawing and then read how they figure them and then ingest your brain.

Trading the Forex is not difficult if you put in your instance to research. This week will be an interesting one, stay tuned for more of the same from the Dollar and ready your eyes down under.

The Dollar has fallen to a year low against almost every major currency, presented the problems that the US is facing, it is understandable – but the stock market gains are what is puzzling to me.

Forex Investors and traders are pumping up the markets because historically, when people have a sense of security they tend to abandon the the USD and the Yen and effort their luck with stocks.

If the pundit, Nuriel Roubini is right though, the global scheme challenge that we are facing is farther from over. Only yesterday did the US revise 4th quarter 2008 and 1st quarter 2009 figures to show a decline twice than what was originally disclosed. Worse even, than at the worst time during the Great Depression.

The US Economy is still in freefall. The fact that Tim Geithner, the US Treasury Secretary, has now began telling news outlets that the biggest challenges place ahead with the enormous deficit is a big warning sign of that.

Broker trading companies investing and trading in the markets have begun to recognize this as the Dollar has matched the economy. The market seems to have reversed from a psychological one to a fundamental one and this is good.

I still believe that the real money to be made lies with state and New Zealand. The risk is less because of the low value of their nowness in comparison with the big four, Yen, Euro, Pound and US Dollar, and the yields can be higher.

The Aussie and dweller have been doing very well as of late, and the Australian honesty we saw last week has seemingly unvoluntary such confidence in the competence of the activity there.

Oil is rising and with it other commodities that rely on the slippery black stuff to help extract it – the $71 per barrel that oil is now is very beatific for both down under dollars.
Keep an eye out this week for the unemployment numbers from the US and the British GDP figures. They module go a daylong way to showing us how to move in the coming days.