Tag: Dollar Strength

Oracle’s Estimates Lowered at UBS on Currency Concerns (ORCL)

Oracle’s Estimates Lowered at UBS on Currency Concerns (ORCL)

Enterprise software giant Oracle Corporation ( ORCL ) saw its earnings estimates cut on Thursday by analysts at UBS. The firm said it lowered ORCL’s estimates through 2011, citing possible currency headwinds as the euro continues to decline and dollar strengthens. Still, the analyst maintained its “Buy” rating and $31 price target on the stock, which had closed at $22.64 on Wednesday. Oracle shares fell 14 cents, or -0.6%, in premarket trading Thursday. The Bottom Line We recently removed shares of ORCL from our recommended list on May 4, when the stock was trading at $26.01. The company has a .88% dividend yield, based on last night’s closing stock price of $22.64. The stock has technical support in the $20-$21 price area. If the shares can firm up, we see overhead resistance around the $25-$26 price levels. We would remain on the sidelines for now. Oracle Corporation ( ORCL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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The U.S. Dollar Index: A Deceptive Indicator of USD Strength

Filed in currencies, Dollar Strength, euro, Gold Investing, silver by on May 18, 2010 0 Comments

Most of the major financial news outlets and many investors have come to rely on the movements of the U.S. Dollar Index as a daily barometer of the U.S. dollar’s relative strength and weakness taking it on faith that the Dollar Index is the dollar – pure and simple. In reality, the Index offers a very distortive view of the movement of the dollar against the currencies that matter most. If anything, recent movements of the Index are a reflection of euro weakness rather than dollar strength. Words: 1019

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Short Euro, Sterling

Filed in Dollar Strength, euro, Gold Investing by on May 7, 2010 0 Comments

Michael McCarthy, head of dealing, Asia Pacific at City Index, says he is short the euro and sterling and looking for further dollar strength. He talks to CNBC’s Bernand Lo and Oriel Morrison. Short Euro, Sterling

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The Peak Oil Side of Volcanoes

This Icelandic volcano is not just a quaint story about some faraway place. We need to keep an eye on Iceland and its grumpy volcanoes. The historic record is filled with Icelandic volcano blasts that wrecked European civilization. It goes back at least to the days of the Roman Empire. There’s evidence that an Icelandic eruption in A.D. 405 led to a harsh winter the next year, in which the Rhine River froze. This allowed the barbarians cross in numbers sufficient to defeat the Roman Legions. In A.D. 934, there was a massive lava flow from Iceland’s Eldgja fissure system. It unleashed the largest basalt flood in recorded history. An ash cloud blanketed Northern Europe and weakened many political structures. This eruption helped keep the Dark Ages dark, and in particular harmed the English political system. It’s no coincidence that William, Duke of Normandy, conquered England a century or so later, in 1066. Then there was the Laki eruption in 1783, with another immense outpouring of lava in Iceland. This eruption emitted large volumes of poisonous gas, including fluoride and sulfur dioxide chemicals that poisoned half of Iceland’s livestock. The gas cloud blew over Scandinavia as well, causing many deaths and hardships that included a long famine. There were many deaths further south in Western Europe, as well, in 1783. Then came several years of extreme weather. Among other problems was a shortfall in farm output. This led to a drop in tax receipts for governments across the continent. In France, King Louis XVI eventually had to summon the Estates General to ask for new taxes. Instead, he wound up with the French Revolution. Do not discount the immediate or long-term human, economic and social effects of natural phenomena. I hope that the Icelandic volcano goes back to being dormant. But it’s nothing that anyone can control. One way or the other, the Icelandic volcano is important to you as an investor. …

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Dollar strengthens after jobs report

Filed in Debt, Dollar Strength, Gold Investing by on February 5, 2010 0 Comments

What’s moving the market: Traders have been flocking to the safety ofthe dollar as the fiscal problems facing Greece, Portugal and Spain continue to deepen. While few analysts expect any of those countries to default on their debts, rising borrowing Dollar strengthens after jobs report

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The Debt Problem Has Not Gone Away

Filed in Debt, Dollar Strength, economy, Gold, New Gold, Spot Gold by on February 1, 2010 0 Comments

Last year’s stock market rally was impressive. But what if it was merely a case of investors taking on more risk, having been encouraged by low interest rates and all the liquidity sloshing around in the stock market, taking it higher? How would that be substantially different from banks taking advantage of low rates and liquidity to make epically bad lending decisions? We’ll get back that in a second. Like it or not, the Aussie share market still takes its marching orders from the U.S. action. It hasn’t decoupled yet – even though what drives the respective economies of Australia and America is somewhat different. Australia has resource demand for its raw materials from emerging markets. America does not. But both countries have debt (especially household debt), and plenty of it. Here in Australia, what will investors think of the new powers being sought by the Federal government on behalf the corporate regulator, ASIC? ASIC would have the power to tap phone lines, impose fines of $500,000 on insider traders, and double jail terms for insider traders from five to ten years. Hmmn. Better yet, what will corporate insiders think? We’ve seen some strange share price activity since moving to Australia four years ago. Shares move on no news and volume spikes. Then a few days or weeks later some important announcement comes out. And frankly, the disclosure rules for insider buying (or selling), or at least the enforcement of those rules, seem fairly voluntary. Not that it’s any better in America or anywhere else. But perhaps because of the smaller financial community and the underpowered regulator, the insiders have a better time of it here than they might other places. Ahem. But the power to tap telephones? Yikes. That sounds draconian. But it’s fully in line with the encroachment of government power into private life, so it’s no big surprise. Outside Australia, more trouble is piling up for the world’s most debt-addled nations. “We no longer classify the United Kingdom (AAA/Negative/A-1+) among the most stable and low-risk banking systems globally,” said ratings agency Standard and Poor’s. The FTSE finished lower on that cheery note. This is the big back story to today’s financial markets. The debt problem has not gone away. Banks have recapitalised, making up for some of their losses from 2008 and 2009. But you still have a financial system addicted to debt and leverage. Investors have bought into the recovery story, though, and taken a punt on shares at just the time they ought …

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Spot Gold picks up from 4-week low as Dollar loses strength

Filed in Dollar Strength, Gold, Gold Investing, Gold Prices, Spot Gold by on January 28, 2010 0 Comments

FXstreet.com – Gold prices are piking up during Early European session, As Dollar strength fades, and the yellow metal reaches levels at $1,093 resistance area after bouncing from a 4-week low at 1,081 during Asian session. Spot Gold picks up from 4-week low as Dollar loses strength

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Australian Dollar Within One-Cent of Two-Month High as Commodities Advance

Filed in Dollar Strength, Gold Investing by on January 18, 2010 0 Comments

The Australian dollar traded withinone U.S. cent of a two-month high after prices of commodities,which account for a majority of the nation’s exports, advancedon speculation global demand will increase. New Zealand’s dollar strengthened versus 14 of Australian Dollar Within One-Cent of Two-Month High as Commodities Advance

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Gold slumps as dollar strengthens

Filed in Dollar Strength, Gold, Gold Holdings, Gold Investing, US Dollar by on December 4, 2009 0 Comments

The gold price has slumped after surprisingly good US unemployment data sent the US dollar higher, making gold a less attractive investment.Gold fell more than $65, or 5%, to $1,161.4 an ounce, down from a record high of $1,226.56 in early trading . Gold slumps as dollar strengthens

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Russia rouble closes at 10-day low on c.bank remarks

Filed in Dollar Strength, Gold Holdings by on November 20, 2009 0 Comments

MOSCOW, Nov 20 – The Russian rouble closed at a 10-day low against the dollar on Friday after downward pressure from global dollar strength and talk of capital controls was compounded by confusion about a central bank official’s remarks. The roubl Russia rouble closes at 10-day low on c.bank remarks

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Crude Oil Is Little Changed After Falling on Dollar Equities

Filed in Dollar Strength, Gold Investing by on November 19, 2009 0 Comments

Crude oil traded little changedafter declining 2.7 percent yesterday as the dollar strengthenedand equity markets declined. Oil is poised for a weekly gain as the Organization forEconomic Cooperation and Development doubled its growth forecastfor th Crude Oil Is Little Changed After Falling on Dollar Equities

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“The Worst Case Scenario”

Filed in Debt, Dollar Strength, Gold, Gold Prices by on November 19, 2009 0 Comments
“The Worst Case Scenario”

The U.S. stock market contiued to slide thursday as the dollar strengthen. At Capitol Hill treasury secretary Timothy Geithner is facing tough questions from the senators who begins to loose confidence i Geithner and the Obama-administrations ability to handle the crisis. Ananlysts at Société Générale warns about a global debt collaps. “We also recognise that the

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