By Kevin Craig, Matzav.com
One of the most popular currencies dealt with in Forex is USD and this week has not been a good one for the dollar. The value of dollar wavered this week as against the Euro, pound and yen, and this was induced by a fall in the orders for U.S. durable goods. This fall in the orders of durable goods and unfortunately was marked at 7.3% in the month of July, and is indicative of a probable waning activities of the manufacturing sector. This is the first monthly drop since the end of the first-quarter, and its total rate surpassed all previous estimates by economists and analysts who were all pegging it between 3.6% to 4%.
Most of the slump in durable goods order has been caused due to the low performance of the transportation segment. But transport is not the only category to be blamed; even the demands for other capital goods like electronic products and computers saw a loss of 0.6%. This particular fall was also uncalled for as analysts had projected an increase of at least 0.5% in their demands. The total drop of 7.3% came following the footsteps of a 3.9% jump in the total orders as registered in the previous month itself.
The current status of the dollar stands at $1.3382 against the euro as of 12:33pm GMT. Alongside it also registered a 0.15% drop at $1.5589 against the UK’s pound. Further, as against the Japanese yen the dollar registered a decrease of 0.32% to ¥98.35.
As per the ‘Bloomberg Correlation-Weighted Indexes’, which follows 10 developed-market currencies, in totality the dollar actually appreciated in value by 4.8 percent in the current year. However, it is the euro which has proven to be the best performer in the market as it marked a spike in value of 6.5 percent. Nonetheless, on the other hand we see that the yen has slipped down by about 8.9%.
Among other news involving the foreign currency market, an important news on which online Forex traders and training programs (Forex online schulung), should keep an eye on is the condition of the Italian market.
As any course on Forex online training/ Forex online schulung will tell you, that one of the basic rules about currency trade is knowing that the internal socio-political affairs of any country affects its currency value especially in the foreign market. So it is mandatory to keep a tab on certain key international affairs to perform well in this trade. One such key affair of the present is the instability which is being caused in the Italian market as members of Silvio Berlusconi’s centre-right Freedom Party have vehemently opposed the move of evicting him from the parliament due to his role in committing tax fraud. His party members have gone far enough to threaten the toppling of the entire Italian political system; this could lead to an absolute halt on the fiscal reforms being initiated in Italy. Such events have reflected in a notable slippage in the performance of both Italian stocks and bonds. If the internal affairs of the country are not sorted out quickly, this would lead to a further fall in value of the key economic tools of the nation.
Mr. Kevin Craig is a financial writer by profession and has specialization in dealing with financial problems as well as its solutions and also written some great articles on refinance, mortgage refinance, credit counseling, credit repair, debt management, Forex online schulung and so on.