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Dollar Drops After Bernanke Speech & GDP Report

The US dollar fell today after the report showed that the US economy expanded with slower pace than was predicted by specialists and Federal Reserve Ben S. Bernanke hinted at possibility of additional stimulus.

According to the preliminary report, US gross domestic product grew 1.0 percent in the second quarter of 2011, following the increase by 0.4 percent in the first quarter. The advance estimate promised growth by 1.3 percent, while market participants expected rise by 1.1 percent.

Bernanke said today at the Federal Reserve Bank of Kansas City Economic Symposium in Jackson Hole, Wyoming, that the Fed has means to further stimulate the US economy, stating “the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus”. Chairman added that in the long r

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ECB Releasing Less Money into European Market

Annualized data out of the euro zone this morning revealed a mildly sluggish growth in private loans issued throughout the region. The data seems to suggest either banks’ unwillingness to lend out money from tight financials, or individuals not pursuing loans out of economic pessimism. Either way, it does not bode well for the euro zone.

Supporting this data was Friday’s publication of the M3 money supply, also presented in an annualized format, which revealed lower than expected growth in the amount of local currency in circulation domestically. A reduction in the amount of private loans issued and slower-than-expected growth in the domestic money supply seems to point towards unwillingness by the European Central Bank (ECB) to loosen its grips on the EUR in an attempt to stabilize the market. Giv

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Jackson Hole Imminent, European Markets Jittery

The day has finally rolled around when Fed Chairman Ben Bernanke will deliver his much anticipated speech at Jackson Hole; but we are already feeling the event has been over-hyped and that there is large scope for disappointment. The thing which has kept everyone on their guard up until now is the potential that Bernanke could announce a third instalment of quantitative easing in the US (an undoubtedly significant event if it were to take place); but as we’ve asserted all along, US CPI is already unsettlingly high and probably at levels that would be prohibitive for further easing. As such, consensus seems to be shifting in favour of a disappointment this afternoon, and in turn, investor participation in the market seems subdued. I Read more text…

Dollar Awaits Bernanke Speech

A relatively quiet night in early European trade today, marked by some dollar weakness ahead of the speech by Chairman Bernanke from Jackson Hole Wyoming at 1400 GMT later today. The dollar has unwound much of yesterday’s gains versus the low yielders  on fears that the Fed  may be more dovish than originally thought.  

USD/JPY dropped through the 77.00 barrier while USD/CHF fell below .7900 as few traders were willing to hold long positions ahead of the speech. The

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Investors Urged Not to Panic Despite Drops in Stock Prices

Savings Accounts and Money Market Rates provided by 11 August 2011 The U.S. economy has experienced numerous troubles throughout the summer – , downgrading of the federal credit and falling stock prices. Despite this, various experts in economics are saying that investors should not believe the troubles will be a long-term trend, according to the Washington Post.

The news source reports that panic among consumers and investors may lead to adverse consequences in the long run. Those who withdraw from investments in favor of savings accounts, for example, may end up losing money due to future inflation. Transferring money from investments to bonds can lead to similar risks. Read more text…

Vita Food Recalls Smoked Salmon

Vita Food Products says it is recalling more than 8,000 packages of its smoked salmon because the product may be contaminated.

The recall affects the Vita Classic Premium Sliced Smoked Atlantic Nova Salmon.

The Chicago-based company says 8,088 packages could be contaminated with Listeria monocytogenes, which can cause fatal infections to people with weakened immune systems, children and the elderly. Read more text…

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Futures trading is lucrative for speculators who correctly predict the movement of commodity prices. It is wasteful when the volatility of futures prices turn against leverage.

Commodities futures are highly leveraged financial tools. Traders can take advantage of big profits with a relatively low margin called. As for real estate, where a modest decline payment can control a property whose value is much higher margin allows traders to manage a futures position with much more intrinsic value. Read more text…