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27 Jan 2015
Forex Top Movers: US counterattack in the 'currency war;' USD tumbles
FXStreet (San Francisco) - One question is flying over the city of New York today: Is the United States losing the currency war? Journalists are citing news on Caterpillar $CAT which reported lower earnings than expected and cut its forecast for 2015 due to the strong US dollar; Dupont $DD, Intel $INTL and Apple $AAPL are concerned on the same issue.
Clearly the US corporate society is dreading the current levels in the USD versus its major competitors and are spreading that fear. Thus, the US stocks market and the USD are falling apart.
In addition, US durable goods orders tumbled by 3.4% in December; well above expectations of 0.5%. Even worse, November data was revised down to -2.1% from -0.9%.
Within this framework, the notion that the US is in the vanguard of the recovery in advanced economies is losing its appeal. With an economy reeling the Federal Reserve will not raise rates soon.
Thus, investors are flying away from the USD and going into safer assets such as Gold and the Japanese Yen. The Euro and Sterling are also benefiting from the situation as European currencies are extending its recovery against the Greenback.
Top winners of the day are: EUR/USD, +1.17% to 1.1367; USD/ZAR, 1.07% 11.577; and GBP/USD, 0.72% to 1.5188; Top losers are USD/SEK, 1.35% to 8.1892; USD/RUB, 0.99% to 67.73; and USD/JPY, 0.86% to 117.42.
In related markets, US stocks opened sharply lower with the Dow currently losing 1.52% and the S&P 500 falling 1.12%. Oil remains at $45.40 while the Gold is climbing to 1,288.75.
Clearly the US corporate society is dreading the current levels in the USD versus its major competitors and are spreading that fear. Thus, the US stocks market and the USD are falling apart.
In addition, US durable goods orders tumbled by 3.4% in December; well above expectations of 0.5%. Even worse, November data was revised down to -2.1% from -0.9%.
Within this framework, the notion that the US is in the vanguard of the recovery in advanced economies is losing its appeal. With an economy reeling the Federal Reserve will not raise rates soon.
Thus, investors are flying away from the USD and going into safer assets such as Gold and the Japanese Yen. The Euro and Sterling are also benefiting from the situation as European currencies are extending its recovery against the Greenback.
Top winners of the day are: EUR/USD, +1.17% to 1.1367; USD/ZAR, 1.07% 11.577; and GBP/USD, 0.72% to 1.5188; Top losers are USD/SEK, 1.35% to 8.1892; USD/RUB, 0.99% to 67.73; and USD/JPY, 0.86% to 117.42.
In related markets, US stocks opened sharply lower with the Dow currently losing 1.52% and the S&P 500 falling 1.12%. Oil remains at $45.40 while the Gold is climbing to 1,288.75.