Forex Investment and Currency Trading

USD weakness pushes commodity prices higher
Commodity prices generally firmed in October, drawing support from a range of external factors, most notably a weaker USD. Fundamentals provided added impetus for the market, but improvements in the demand and supply picture remain tentative and are coming from a low base. Investor sentiment has improved, and a sustained recovery in investor demand could fuel a price rally. However, investors will likely be on the lookout for signs of a sustained global economic recovery, which as of now is still uncertain.
Crude oil: boosted by USD weakness, but upside is limited for now
Crude oil (WTI) [...]

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Norges Bank Rate Decision - Release: Oct 28
The Norges Bank is scheduled to announce its latest rate decision on Wednesday 28th October, alongside which it will also release its third and final Monetary Policy Report for 2009. Market forecasts the Norges Bank to announce a rate hike at this meeting. The recent Regional Network Report, on which the Norges Bank has stated it places great emphasis when reaching rate decision, was notably more upbeat on output, and the negativity highlighted by contacts on the price front was somewhat overshadowed by the release of September CPI inflation data which showed the [...]

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USD: For USD, the outlook continues to be for a bit more depreciation in the near term, and then appreciation through 2010 against most of G10. In general there should be no substantial pullback in risk appetite over the remainder of the year, and the correlation between positive risk and a weaker USD will continue to hold at the same time.
EUR: The near-term outlook for EUR is for a bit more appreciation for the rest of the year. The relationship between positive risk sentiment and gains in EUR has really been a force, one that is unlikely to shift in [...]

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Up until 1973, currencies were fixed in value against the US Dollar, according to the system introduced on July 22, 1944 by the United Nations Monetary and Financial Conference in the resort of Bretton Woods in New Hampshire. This agreement became known as the “Bretton Woods” system. The Bretton Woods conference was at the same time the founding venue for the International Monetary Fund, a supranational entity. The IMF was a multilateral decision-making body with limited authority. There was a surprisingly large consensus among the 44 allied nations (plus neutral Argentina) participating in the conference. Everybody wanted to devise a [...]

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