Forex News and Rumors – Afternoon Update

Drop in Commodities Pulls Down Canadian Dollar

The loonie as the Canadian dollar is known, fell to its lowest level in a month against its American counterpart. The loonie was weighed down by today’s dramatic drop in several commodity classes, most notably crude oil. More

Global Dollar Shortage Could Boost Dollar

Carl B. Weinberg, chief economist for High Frequency Economics, said today that he is very “bullish” on the US dollar.

“We are very bullish on the U.S. dollar on most major cross rates in the short term, and even more so in the longer term,” Weinberg wrote today in a report. “A global dollar shortage will appear as the U.S. current-account deficit declines. The long-term prospects for the dollar are strong.” More

Oil Takes Nosedive

Contracts for oil for July delivery dropped more than 4 percent to $66.40 a barrel by mid-day in New York. Recent comments from the World Bank and a growing fear that demand for oil will continue to deteriorate for the remainder of the year conspired to lower the price. More

German Business Confidence on the Rise

For the third month in a row, Germany’s business confidence – based on feedback from of 7,000 executives – rose in response to a survey of questions dealing with future plans. For June, the index increased to 85.9 from 84.3 the month before. More