Dollar May Weaken on Speculation U.S. Trade Deficit Expanded

[oldhat]

http://quote.bloomberg.com/apps/news?pid=10000103&sid=aFgEpn7h7Fqs&refer=news_index

Dollar May Weaken on Speculation U.S. Trade Deficit Expanded

Dec. 14 (Bloomberg) -- The dollar may weaken for a second day in Asia on speculation a report today will show a widening U.S. trade deficit and the Federal Reserve will commit to a ``measured'' pace of interest-rate increases.

Policy makers will boost the central bank's target rate for a fifth time this year, said all 22 primary dealers of U.S. government securities that trade with the Fed's New York branch. Concerns that a widening deficit means more dollars need to be converted into other currencies to pay for imports yesterday helped to snap the U.S. currency's rally last week.

``The Fed isn't expected to say anything surprising, and the deficits are still the primary reason behind the dollar's decline,'' said Minoru Shioiri, a manager of foreign exchange trading in Tokyo at Mitsubishi Securities Co. ``The dollar's trend remains down.''

The dollar traded at $1.3314 per euro at 10:03 a.m. in Tokyo, from $1.3310 late yesterday in New York, according to electronic currency dealing system EBS. It was also at 104.68 yen, from 104.84 yen.

The trade shortfall probably widened to $53 billion in October from $51.6 billion in September, based on the median forecast of 65 economists surveyed by Bloomberg News. It reached a record $55 billion in June.

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What was that about the Pentagon's new $100 billion emergency request?

[Deja Q]

1. And the pioneer press a few days ago was bursting as to how great the weak

dollar was in terms of getting foreigners to spend dollars at the Maul of America. :crazy:

[DireStrike]

2. Am I reading this wrong?

"The dollar traded at $1.3314 per euro at 10:03 a.m. in Tokyo, from $1.3310 late yesterday in New York, according to electronic currency dealing system EBS. It was also at 104.68 yen, from 104.84 yen."


Seems to me like it went up and down at the same time...?

[UpInArms]

4. depends on the currency that is being looked at

$1.3314 is higher than $1.3310 euros

but the yen goes the other direction

104.68 is actually more than 104.84 yen - the yen is getting stronger - the closer to 100 the more anxiety is created for the BoJ (Bank of Japan) and the more they appear willing to intervene (they don't want the yen to strengthen as it hurts their exports to the USoA)

know it's confusing, but that's the way it is.

[Endangered Specie]

3. Wouldnt be ironic if the canadian dollar one day equaled the american

:crazy:

[k8conant]

9. Canadian $ and US $ were at par when I was a kid...

which may be telling you how old I am. I lived in the Detroit suburbs and we used Canadian coins interchangeably with US. However, at one point, the Canadian $ dropped a bit (to $.94 I think) and the high school quit letting use Canadian coins (not even pennies).

[aquart]

5. Tried to buy a spice lately?

Or authentic australian uggs (as opposed to Ugg Australia boots which are made in China for an American company)?

The prices are way higher than last year.

[whistle]

6. $51.6, $53.0, $55.0 billion suggests a $600 billion annualized. . .

. . . trade deficit. That can absolutely not hold, some think will have to blow and that something will happen very soon. Expect interest rates to be accelerated by a full point by the Fed at their next meeting. Expect the dollar to hit a new all time low against most world currencies. Expect credit to the U.S. to be curtailed (who will trade on credit when the U.S. dollar is at risk of hyper-devaluation). Then expect a major recession here in the U.S. This whole thing has been totally botched by the Bush Administration during the last 12 months, the cows have come home but they are not going to be giving any milk.

[oldhat]

7. The sky is falling

This "correction" is going to be painful but it won't be Armageddon.

Sheesh.

[cliss]

10. I agree.

Amazing, isn't it? when you find out we are in such dire straits. I think our situation has been like Enron for a few years now: all hype, no substance. We have been exporting our debts for quite a while now. We just keep sinking deeper and deeper into the quicksand of our own making.

And this is stuff that's not really talked about. They don't want us to know just how bad things are with out balance of trade deficit and many other financial gauges.

It makes sense when you think of us marching to war in Iraq. I could never figure that one out. It's kind of like a high-profile attorney who's married, has a loving wife and kids. A beautiful home, a great reputation. Without warning, this attorney goes down to the local prostitute. He knows he's going to lose his marriage. His partners at the law office will be pissed. There are cameramen waiting down at the local whore house.

And he does it anyway. That's how I think of our involvement in Iraq. It was suicidal. It was a huge gamble, but we had no other choice. Like Stan Goff said, "It was an act of desperation".

[VegasWolf]

8. Damn, and I was hoping for a year end run on the stock market

to improve so that i could buy euros on a dip!
Bush is fucking up even the job of fucking up the dollar.

[puerco-bellies]

11. I've been doing well for my clients by going long the Euro Currency,

Shorting the dollar, and I am now in the British Pound. I started out long the Australian dollar but it is not moving enough for the risk exposure.

[dbt]

12. And didn't I see yesterday where the British Pound is $1.91?

:hurts:
dbt