U.S Stock market is exploding

On top seeing the great boom in the U.S currency market, we also can see some more interesting booms in the U.S stock market too. The U.S tock market rose to almost three months high this week on expectations that the technology companies will give out some profits. The foremost companies like the Apple Inc and Microsoft are going to introduce their new products into the market and this new release of their products will influence the prompt consumers and businesses to spend more.

Apple:

Apple, whose iPod dominates the market for music players, climbed to a record after unveiling its iPhone mobile phone.

Microsoft:

Microsoft, which will start selling its Windows Vista software to consumers this month, jumped after strategists at UBS AG and Bear Stearns & Co. upgraded their recommendations on the industry.

Stocks:

Stocks were no exception for boosting. They also got a boost as oil prices slumped to a 19-month low. The Dow average added 1.3 percent to a record of 12,556.08. The NASDAQ Composite Index had the biggest climb of the three gauges with a 2.8 percent increase to 2502.82. That's a level not seen since February 2001.

Sterling was taken to Surprise!!!!!

The Bank of England has announced a surprise rise in the interest rates by a quarter of a point to 5.25%. This decision by the Bank of England has taken the Central Bank to a great surprise. Sterling powered to a six-a half year high yesterday after revealing the surprise. The Bank of England’s effective sterling trade-weighted exchange rate index rose to 105.20, its highest level since May’2000. The Sterling gained to a one-week high against the dollar by $1.9538. The pound rose to 0.8% to an 18-month high against the Euro to 0.6640 and 1.3% against the yen.

The Euro slipped against the dollar at 0.3% to $1.2895 because the European Central Bank left the Euro-zone unchanged at 3.5%. But the Japanese Yen continued to fall 0.7% against the dollar making it the lowest level since December’05 and lost 0.4% against the Euro. The depression trend in the Yen is because the Japanese economic data is very weak when compared with other countries economic data.

All in all, the surprise was very thrilling.

Stability in U.S trade deficit!!!!

The trade deficit in October’06 was $58.8bn and this figure caused some tension in the U.S economy market. But soon in the next month the trade deficit shrunk to $58.2bn in November’06 showing some improvement in the U.S trade market. The improvement was mainly due to lower oil prices, and rise in U.S exports. But whatever may be the reason, the trade deficit is shriveling and boosting up the dollar from angst. Improving the trade position in the U.S may heighten up the GDP growth by 1% point.

Yesterday, the dollar gained 0.4% against the Euro and 0.2% against the Turkish Lira. And it also rose 0.4% against the Indonesia’s Rupaiah. The trade deficits which were very massive in U.S earlier some two-to-three months back are now stabilizing and the dollar is enjoying some firmer tone now against its major trading participants. On the other hand, the Yen is bouncing back against the Euro by dipping it by 0.2%.

The U.S dollar back in action!!!

The U.S dollar is leading the currency market leaving behind all the world currencies. The Euro which was making a big way earlier this month is at once silent in the foreign market. At the moment, it is the U.S dollar which is escalating. The dollar rose to almost seven weeks high against the Euro on speculation that the Fed may rethink about the inflation that has yet to be domesticated. Apart from showing its solidity to the Euro the dollar showed to the Yen too. The dollar rose to $1.294 per Euro yesterday making it the strongest since Nov’24. The Fed’s lending rate between the banks is at 5.25 since June and the BOJ’s key rate is 0.25% and the European Central Bank’s benchmark is 3.5%. So the traders are waiting for the Fed to meet next on January 31^st’07 to lower the rates in March down from 100% last month.

Apart from all these, the trade deficit in U.S is a cause of worry. The trade deficit widened to $6o billion in November’06 when compared to $58.9 billion in the previous month (i.e October’06). The Head at the Foreign exchange trading at Sumitomo said that the people who have recently bought the U.S dollar may have to unwind their trades.

Hoping that people who bought the U.S dollar recently will be at positive stride.

The U.S dollar’s speculation Magic!!!

I thought the U.S dollar will show its magic in New Year. And so it showed. It challenged the Thanksgiving Day losses and recouped itself and stood stable against the top currencies like the Euro and the Sterling till yesterday. But I didn’t think that it will start speculating so early.

So, it is understood that what we think may not happen always, that is the specialty of the world markets.

The U.S dollar was ruling the foreign currency market starting from third day of the New Year till yesterday. But suddenly yesterday by mid-afternoon the U.S dollar slipped 0.1% and 0.2% against the Euro and the Sterling respectively. But thank god it gained 0.1% high against the Swiss Franc. Nevertheless to say that the U.S dollar stood flat against the Yen at Y118.60.

On the other hand, the dollar again speculated on a positive note. Later at the end of the day, the dollar held close to six-week high against both the Euro and the Sterling. And the credit will obviously go to the U.S employment data which showed more positive approach than anticipated. A Financial Analyst at Barclay’s capital said that the U.S rates will not be cut at all in next 6 months or so and this decision would be consistent for the dollar to be strengthened over the next couple of months. And it also heard that the Fifth Largest Oil Producer in the Arabian Gulf, Oman supported the U.S currency and stated it kept most of its five billions of its central bank reserves in U.S currency (i.e., dollar) rather than going for the European Euro.

A currency Economist said that the growth in U.S economic prospects may prove a down-side risk to the Japanese market. However, it is expected that the Japanese market will be cautious against the U.S dollar in future.

World Markets are always capricious!! We don’t know what will happen the next moment. We know only to wait and watch and later on admit the output.

So let’s see how the world markets will play their game.

The U.S dollar going on hike!!!!

After New Year, the dollar is making a big way in the world currency market. The dollar rose 0.6% against the Euro, and 0.7% against the pound and 0.4% against the Swiss Franc. The manufacturing data in the U.S showed fantastic progress and in addition to that the U.S employment data also beat the forecasts and came out in a huge way giving a good path to the U.S dollar. First New Year week came to an end the dollar climbed 1.4% against the Euro, 1.5% against the pound, and 1.6% against the Swiss Franc. The yen changed a bit against the dollar and stood y118.80. Let’s hope the U.S dollar continues this hike

The U.S Dollar is on its way to recover its Lion's Share

Day before yesterday the U.S dollar has relieved many from anxieties and worries. On the second day too (i.e. yesterday) it went up. I think the U.S dollar’s New Year resolution is to make people happy by moving in an upward trend. From past two days the U.S dollar is going up. Yesterday, the dollar rose 0.5% against the Euro and 0.4% both against the Sterling and the Swiss Franc.

Financial Analysts said that the short-term investors who stepped back owing to the dollar’s weak position are now stepping ahead to buy back the U.S currency. After a holiday, the U.S dollar is in high spirits. The previous week the dollar’s pattern was very vulnerable and many thought to sell-off the dollar at the end of the year2006. But in this New Year the dollar recouped itself and it’s on the way to recover its lion’s share. Let’s see whether it will get back its share or not.

Hey!!!! Dollar is up

The U.S dollar’s position was not fine from past many days. It has been fluctuating on a negative side. Many people and especially the people who were related with the U.S dollar were worried and were wishing & waiting for the U.S Dollar to go up. And at-last their wish yielded a fruit. The U.S
dollar took a good dive and went up yesterday making all the people exuberant. After many days in slope, the U.S dollar went up. And the credit goes to the manufacturing data which showed a positive approach and made the U.S dollar to a hard-land in the world’s largest economy. There has been tremendous growth and stabilization in housing data and auto sectors from December ’06 when compared to Nov’06. It is expected that this stabilization at this point of time may put an end to the U.S slow-down.

All's Well That Ends Well, so the dollar rose 0.8% high against the Euro, 1.1% against the Sterling. And it also rose 0.7% against the Yen making it a record of two-month high.

Wishing that this hike will be stable!!! Let’s see

New Year’s magic did not work for the U.S Dollar!!!

New Year is a year which brings in new challenges, new opportunities and above all New Hopes. So I was hopeful that this New Year will change the U.S dollar’s position by taking the U.S dollar up. But my hope didn’t work out. The U.S dollar again slithered. And as we all know that from past few days Euro is hitting the market, now also the Euro is ruling the world markets.

Yesterday Japanese markets were enjoying a holiday and the U.S financial markets were observing national mourning for their former president so the trading conditions were light. And it was expected that the foreign exchange market may not work well. But to everybody’s surprise the Foreign Exchange market made an explicit move. Both the currencies the Euro and the Sterling rose against the dollar though their manufacturing data showed that it was weaker than expected. The Euro and Sterling rose 0.6% & 0.7% respectively against the dollar.

In 2003 also, the dollar’s position was also weak. But by middle of 2004 it again made progress. So let's expect that by middle of 2007, the Dollar will make a way to progress

The U.S Stock Market gained its best in 2006 in contrast to 2003

The U.S stock market rose last week enlarging a best gain since 2003. 2006 was a good year for the U.S stock market. The Dow Jones Industrial average went to 12,500 for the first time. The S&P 500 rose 0.5% to 1418.30 for the first time since 1990. The NASDAQ composite Index which gets 41% from computer-based shares increased to 0.6%. On the whole for 2006, the Dow Jones Average climbed 16 percent, being the biggest gain among the three-major U.S gauges. The S& P 500 was standing next with a 14 percent jump and while the NASDAQ had the smallest rise by 9.5%.

Though the Stock market had done well and it is expected to do well in future, but when it’s the case of Currency market, the currency market in U.S is still a cause of worry. The dollar fell again owing to the data that showed that the U.S manufacturing growth stalled and job creation slowed. . A report may show that the U.S manufacturing didn’t expand till last month after reducing for the first time since April 2003. The dollar fell to 118.74 against the Yen. And it also dropped against the Euro to $1.3237 to $1.3174. The Stock market trading average may be about 50% below today as the U.S financial markets are observing a national day of mourning for former President Gerald R.Ford