Wednesday, September 22, 2010

Yesterday the federal government decided to leave interest rates at the same level. When the announcement came out there was not too much volatility against the US dollar, however the dollar has falling against most currency pairs this morning.
The dollar has fallen sharply over the course the day in reaching 1.34 against the euro which is the strongest level the euro has seen since April. The dollar is also weakened against the Yen and the pound. The dollar is also reached 2008 lows against the Swiss franc. Obviously the dollar is pretty weak at this moment to the fact that interest rates have been staying stagnant for quite some time. This shows that the recession continues and there is no need to push the dollar up any time soon. Usually when this happens gold will move up handsomely and most investors will put their money there.
The Canadian dollar weakened sharply after unexpected decline in retail sales. The US dollar did bounce back to 1.0190. The sudden drop in retail sales for Canada shows that their economy is in a bit of a struggle as well. The Aussie dollar also settled to fresh two-year highs based on some news and events that have occurred throughout the day. Everywhere you look it appears the US dollar is weak. Everything started falling in 2008 as well when the dollar was starting to go against everything else and not reaching new highs.
Some pretty crazy Forex scam news that occurred yesterday. Federal prosecutors had alleged Bradley D Eisner was part of a scheme to defraud investors in razor FX. In a total of $66 million Ponzi scheme has been discovered in the spot foreign currency exchange market. I don't understand where these guys get their balls from, but it's absolutely absurd that they think they can get away with this, stuff. It's guys like this that makes you not want to trade sometimes and it puts a real big damper on everything else.

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