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Forex News and Rumors – Afternoon Update

Deutsche Bank Cuts Dollar Forecast as Fed Keeps Rates Low

Deutsche Bank AG, the world’s largest currency trader, lowered its year-end forecast for the dollar versus the euro, citing the Federal Reserve’s pledge to keep interest rates low a long time.

The dollar, trading at $1.4217 per euro today, will strengthen to $1.30 by the end of December, Binky Chadha, Deutsche Bank’s chief strategist in New York, wrote in a research note to clients today. The Frankfurt-based bank had previously forecast the dollar will appreciate to $1.20. More [1]

Obama: US-China relations to shape 21st century

resident Barack Obama, opening two days of high-level talks with China, said the discussions could lay the groundwork for a new era of “sustained cooperation, not confrontation” in a relationship likely to shape the 21st century.

Obama said that Washington and Beijing needed to forge closer ties to address a host of challenges from lifting the global economy out of a deep recession to nuclear proliferation and global climate change. More [2]

Wobble over, FTSE makes the 11-day record

Choppy trading in silly summer volumes has seen the FTSE 100 nip into positive territory just in time for the close and achieve that record-matching 11-day winning streak.

Only just, however. The index closed up 9.5 points, or 0.2%, at 4,586.13. It has now enjoyed 11 straight sessions of gains since July 13 and is up 459 points, or 11%, over the course of that rally. More [3]

Derivatives bill to clamp down on speculation

Congress will consider steps to curb speculation in the credit default swaps market and could ban naked swaps, according to a U.S. House of Representatives Committee document obtained by Reuters. More [4]

U.S. new home sales rise sharply in June

Sales of new single-family homes in the United States rose more than expected in June, while the inventory of homes for sale fell to a more than 11-year low, government data showed on Monday.

Sales rose to an annual rate of 384,000 in June, the Commerce Department reported, up 11 percent from May, while the number of new homes still for sale fell to 281,000, the lowest since February 1998. More [5]

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Alfonso Esparza

Alfonso Esparza [10]

Senior Currency Analyst at Market Pulse [11]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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