Currencies contribution by Kosi Orah

(Wednesday)

MBA (Mortgage Bankers Association) announced in their weekly statement that mortgage applications rose 4.7% last week from the weaker 0.8% rise in the week before. Reflected by the movement of EUR/USD throughout Wednesday; started the morning at a relative low of 1.0864; rallied up to highs of 1.0905 by midday after the MBA announcement made at 7:00 AM

The US Dollar has performed well against most of its counterparts this week thanks to the hawkish/buillish comments by Lockhart (FED Board Member). Speculators are now positioning themselves for a likely rise in interest rates in October

The effect of a stronger dollar on Gold?

Gold prices are at a 6 year low etc… more faith in US banking system at the moment meaning demand for treasury bills/bonds are lower. Could be more reason to expect an interest hike in the coming months?

Steady performance against Japanese yen; significant resistance level of 124.2 has been broken through this week. However more positive data needs to be released from US to maintain the latest gains on JPY in the long run.

Political aspects:

How will the current positive outlook for the Dollar affect the policies pushed forward by the fore runners of the American political race?

Will this growth remain sustainable?

Hope this is alright so far. These briefs will improve over the next few weeks just help push me in the right direction; thanks Tor.