Forex News and Rumors – Afternoon Update

Business Confidence on the Rise in Canada

A recent survey that probes Canadian business leaders for their thoughts on the state of the economy, indicates that 61 percent of senior manager now expect sales and conditions to improve over the next year. This is the first time since the third quarter of 2008 that a majority of the surveyed executives felt positive about future sales. More

Oil Closing in on 2-Month Low

Oil dropped below $60 a barrel by mid-day trading in New York today. Oil for August delivery fell 38 cents to $59.51 at 1:45 PM New York time. More

Pound Declines as Investors Worry About Bank Losses

The pound fell to a one-month low against the euro as investors worry about further bank losses. On Sunday, the Times reported that Lloyds Banking Group Plc and other large banks may yet announce further losses. More

Better Than Expected Earnings to Pull Down Dollar

A JPMorgan Chase & Co. analyst said today that the dollar could weaken in the short-term if company earnings beat expectations.

“With the bulk of earnings due to be reported over the next three weeks, a net balance of stronger earnings should provide a boost to equity markets and risk assets at the expense of a weaker dollar,” a team of JPMorgan currency strategists led by London-based John Normand wrote in a July 10 report. “We remain medium-term dollar bears.” More

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