The pound was weaker on Tuesday after a new report from mortgage lender Halifax showed that house prices fell by 2.5 percent in March.

The price declines made it more likely that the Bank of England will cut interest rates soon.

At around 11 a.m. in New York, the pound traded at 79.81p to the euro and at 50.81p to the US dollar, while it took ¥201.8488 or SFr1.9953 to buy a pound.

The US dollar was slightly weaker versus the euro and the yen ahead of the release of the minutes from the most recent meeting of the Federal Reserve, due to be released later on Tuesday afternoon.

The greenback was trading at $1.5696 to the euro and was worth ¥102.6450 in late morning trade in New York.

Speculation that the South African Reserve Bank will hike interest rates to 11.25 percent later this week send the rand higher in relation to the US dollar.

After strengthening to R7.76475 to the greenback, the rand traded at R7.7865 at close to noon in New York.

Meanwhile, the Australian dollar saw gains on a return to carry trades as investors worried less about credit market problems and on higher prices for commodities.

The Australian dollar was worth 92.77 cents US or ¥95.1445, while it took A$1.6932 to buy a euro.

The yen and the Swiss franc both saw declines Monday as global equities markets rallied, encouraging investors to enter into risky carry trades in which they borrow money where interest rates are low in order to buy high-yield currencies.

At nearly noon in New York, the yen traded at ¥102.7200 to the US dollar, at ¥161.4757 to the euro, at ¥13.215 to the South African rand and at ¥81.855 to the New Zealand dollar.

The Swiss franc was at SFr1.0148 to the greenback,a t SFr1.5925 to the euro, and at SFr2.0159 to the pound.

Meanwhile, the pound was lower versus the US dollar on the possibility that the Bank of England will cut interest rates this month at the same time as both the European Central Bank and the Bank of Japan are expected to hold rates steady.

In late morning trade in New York, the pound traded at 50.34p to the dollar and at 79.13p to the euro.

The Australian dollar was generally lower on sentiment that economic growth there will slow and the Reserve Bank of Australia will cut interest rates.

While the aussie declined versus the US dollar to 92.81 US cents to the aussie, it still gained versus the yen to ¥95.3293 to the aussie.

The US dollar was weaker versus the euro and the yen on Friday after the Labor Department reported that 80,000 jobs were lost in the United States in March, more than had been expected by analysts.

At just before noon in New York the dollar was trading at $1.5730 to the euro while it was at ¥101.7450 in relation to the yen.

The yen was helped by a retreat from carry trades as investor sentiment was hurt by the US jobs report.

The yen traded at ¥160.0398 to the euro.

The pound was down in relation to the euro and the greenback on worries that recession in the US could hurt economic growth in the UK.

In late morning trade in New York the pound traded at 78.82p to the euro and at 50.11p to the dollar.

Meanwhile, the South African rand declined versus major currencies on the avoidance of carry trades.

Earlier in the week the rand was stronger on signs that Zimbabwe President Robert Mugabe could be on his way out of power after elections there.

Mugabe has presided over a weakening of the Zimbabwe economy that has left the inflation rate there at 164,000 percent.

In New York around noon the rand traded at R7.8035 to the dollar and at R12.275 to the euro.

The US dollar weakened versus the yen on Tuesday for the sixth session in a row on increasing sentiment that the Federal Reserve will cut US interest rates by three-quarters of a percentage point this month, to 2.25 percent.

Declines for the dollar also came after Fed chairman Ben Bernanke urged banks to write down more mortgage debt and forgive those debts to homeowners at risk of defaulting on their home loans.

The yen also gained on the euro during the day’s session, trading at ¥156.5302 to the euro and at ¥102.8350 to the dollar in late morning trade in New York.

The pound also gained on the greenback as analysts cut back on their estimates of how much the Bank of England will cut interest rates this year, going as high as $1.9891 to the pound before slipping back to $1.9859 to the pound just after 11 a.m. in New York.

The pound was weaker, however, versus the euro, trading at 76.65p to the shared currency in New York.

The Australian dollar declined versus its US counterpart as the Reserve Bank of Australia raised interest rates there to 7.25 percent but some analysts said that they believe rates will not go up again for awhile.

In addition, the Bank’s governor said that consumer spending in Australia seems to be moderating.

In late afternoon trade in New York, it cost 92.81 cents US to buy an Australian dollar.

The US dollar hit another record low versus the euro on Monday on fears that there will be more losses for banks due to US economic declines.

After going as low as $1.5275 to the euro, the dollar traded at $1.5173 to the euro in late morning trade in New York.

A report from Goldman Sachs indicates that the euro could strengthen to as much as $1.57, based on the analysis of trading patterns and prices.

The dollar was also lower versus the yen, dropping as low as ¥102.62 before trading at ¥103.7000 at around 11:30 a.m. in New York as equities markets declined and investors fled risk.

The dollar was hurt by new data showing that manufacturing activity contracted in the US in February, with the Institute for Supply Management’s manufacturing index dropping to 48.3 in February after being at 50.7 in January.

Any reading below 50 in the ISM’s index indicates a contraction rather than growth.

Despite the gains for the yen, other Asian currencies were weaker versus the US dollar on concerns that the slowing US economy will hurt demand for products from Asia.

The weakness of the U.S. dollar and the possibility of lower interest rates have drawn fresh investment to the oil market, driving the price of oil to over $103 per barrel for the first time.

An energy analyst said such conditions tend to drive investment away from currency and toward commodities, such as oil, which retain an intrinsic value while currency markets fluctuate. He said, however, that a bubble is emerging.

The analyst, Victor Shum of Purvin & Gertz, said investors are ignoring market fundamentals that indicate steady increases in U.S. crude oil supply, while forecasters predict slower growth in oil demand due to the stagnant economy.

Source: news.yahoo.com

The US dollar weakened Thursday to new lows versus the euro and the Swiss franc and to near a two-and-a-half-year low versus the Japanese yen, while Federal Reserve chairman Ben Bernanke made more comments which have analysts expecting more interest rate cuts soon.

Meanwhile, in a press conference, US President George W. Bush insisted that while the US economy has slowed, it is not headed into a recession and that his administration does not support any further steps to stimulate the economy.

The dollar touched $1.5196 to the euro in morning trade, a new record low, before recovering slightly to $1.5182 to the shared currency and traded at $1.9884 to the pound while a dollar was worth ¥105.5600 and SFr1.0524, also a record low.

The South African rand was weaker versus the yen, the Swiss franc and other currencies as investors backed away from carry trades, eroding demand for high-yielding currencies such as the rand.

The yen traded at ¥13.971 to the rand and while a Swiss franc bought R7.1905 and the rand traded at R7.5605 to the dollar.

The Canadian dollar saw gains on the rising value of exported commodities as oil and gold prices hovered near record highs, with a loonie being worth $1.0291 just before noon in New York.

The US dollar was lower versus the euro on Wednesday on comments from US Federal Reserve chairman Ben Bernanke, who said in testimony before the House Financial Services Committee that the Fed is “ready” to do what is necessary to protect the US economy.

Many analysts took this to meant that more interest rate cuts are coming in the US, and some traders expect the cuts to amount to 2 more percent by the middle of the year.

The main US interest rate now stands at 3 percent.

The dollar also declined on new Commerce Department data which showed that durable goods orders in the US fell 5.3 percent in January, more of a decline than had been expected.

At around 11:30 a.m. in New York, the dollar was trading at $1.5122 to the euro and at $1.9910 to the pound, while it took ¥106.4100 or SFr1.0640 to buy a dollar.

The Canadian dollar was higher on gains in commodities prices, with one loonie worth $1.0193.

The Australian dollar saw gains on the possibility that interest rates there will go up in March in an attempt to control inflation.

The expectation that the Reserve Bank of Australia will hike interest rates by a quarter of a percentage point to 7.25 percent sent the US dollar to 94.09 cents to the Australian dollar by late morning trade in New York.

WASHINGTON (Thomson Financial) - The euro broke the 1.50-dollar mark for the first time ever Tuesday following US economic reports that renewed fears the American economy could be falling into a recession.

The European currency reached 1.5047 dollars at 2230 GMT Tuesday before falling back to 1.5017 dollars.

Analysts say the euro was given a sudden boost from a better-than-expected German business indicator, which stood out amid a series of lackluster macroeconomic indicators in the United States.

The greenback has come under pressure as traders believe sluggish economic reports could pressure the Federal Reserve to keep cutting US interest rates.

Speculators generally prefer to invest or hold currencies in countries where interest rates are rising or expected to increase in they hopes they can increase their potential returns.

The dollar fell to a record low against the single European currency in electronic trading in New York as traders continued assessing the latest economic readings.

An influential survey, released earlier Tuesday, on US consumer sentiment during February delivered fresh ammunition to market forecasters who are predicting a recession.

The Conference Board private research group said its consumer confidence index dived to a reading of 75.0 in February, compared with 87.3 in January. The index had also fallen in January.

The survey showed the confidence of American consumers had slumped to its lowest level since November 1993, with the exception of polling conducted as US forces toppled the government of former Iraqi dictator Saddam Hussein five years ago.

'With so few consumers expecting conditions to turnaround in the months ahead, the outlook for the economy continues to worsen and the risk of a recession continues to increase,' said Lynn Franco, a director of the Conference Board's consumer research center.

The euro's new record run saw it smash a prior record high of 1.4967 dollars struck on Nov 23.

A separate report on wholesale inflation also weighed on the dollar's fortunes, market participants said.

The Labor Department said inflation at the wholesale level surged a stronger-than-expected 1.0 percent in January due to rising food and energy prices.

The accelerating costs of food and energy -- especially crude oil prices -- have caused producer prices to rocket 7.4 percent in the United States in the past twelve months to January.

'Inflation data is clearly not good. The 1.7 percent increase in food prices and the 1.5 percent increase in energy prices will further fuel the recently heightened inflationary concerns,' said Dick Green, president of Briefing.com.

The dollar has lost considerable ground against the euro and other currencies in the past year amid a two-year long housing slump and a credit crunch sweeping financial markets.

The economic turmoil has encouraged the Fed to slash borrowing costs, which has further weighed on the American currency.

Traders said US budget and trade deficits were also undermining the dollar, although recent reports have shown the weak dollar giving a boost to American-produced exports.

Market participants said a better-than-expected report on German business conditions had also helped buoy the euro.

'The German Ifo survey for business confidence unexpectedly rose for the second consecutive month in February, rallying the euro,' said Boris Schlossberg, a senior currency analyst at Forex Capital Markets.

An index of how managers assess the current business climate compiled by Germany's Ifo institute rose in February for the second month running to 104.1 from 103.4 in January.

British energy giant, British Gas, have broken into the wrong house. Couple David Houghton and Abby Simpson came home from holiday to find their locks picked by the company, a perfectly legal thing for British Gas to do if the couple had owed money.

Houghton has been fighting British Gas since he cancelled the contract his flat had with the company, and switched to EDF. British Gas continued to bill him from then on, but Houghton received an apology from the CEO, and thought the matter resolved.

British Gas switched the couple's metre to a pay-as-you-go unit, and left a note. The couple nextdoor were actually the one to owe British Gas money. The company has apologised, reimbursed the couple and blamed the mix up on Royal Mail.

Source: www.dailymail.co.uk

British Gas, having recently come under fire for raising gas and electricity priced by 15%, has reported annual profits of £571m up from the previous year's £95m. It's parent company, Centrica, also reported a 40% rise in it's profits to £1.95bn.

Chairman Roger Carr said: "Centrica delivered very strong financial results during another challenging year for UK energy retailers."

The average gas bill for British Gas customers has risen by 76.7% since 2003 - bringing them up to an average of £653. Electricity bills have risen by 74.3% to £413.

Source: news.bbc.com

The dollar eased further versus the euro and sterling following another round of weak US economic data, falling to 1.4708 and 1.9722, respectively. A key indicator of consumer confidence fell to its lowest level in 16-years with the University of Michigan preliminary sentiment survey dropping to 69.6, versus 78.4 from January. Industrial output in January crept up marginally to 0.1% versus a flat reading in December. Meanwhile, capacity utilization also increased slightly to 81.5% from 81.4% a month earlier. Also released was the December net capital flows (TIC), which more than halved to $60.4 billion, versus a revised $150.8 billion a month prior.

The string of soft US data reinforces fears that the economy is headed toward a recession, thereby prompting the Fed to aggressively ease rates over the coming months. Fed funds futures contracts reflected a 60% probability for the FOMC to cut rates by 50-basis points to 2.50% at the next policy setting meeting in March.

Leaders of some of the world's largest corporations made an urgent call for companies around the globe to reduce their impact on human-induced climate change and embrace a "low carbon lifestyle." A dozen corporations were represented in the call.

"There is no doubt that climate change is one of the most important issues of our time," said Sony CEO Howard Stringer. Sony hosted the event, along with the environmental group WWF. Business leaders said governments aren't doing enough.

The companies, which have already pledged themselves to their own environmental goals, will push business partners and other firms to do the same. WWF official James Leape said, "We are moving into a carbon constrained world ... a new economy."

Source: news.yahoo.com

According to flash estimates of Eurostat, the Statistical Office of the European Communities, euro area GDP rose by 0.4% in the forth quarter 2007. The data was below GDP index in the third quarter, when euro area economy rose by 0.8%, but slightly above analysts’ estimates as they expected increase by 0.3%.

Compared with the same quarter of the previous year, euro area GDP increased by 2.3%, after 2.7% in the third quarter. The analysts expected increase by 2.2%.

Eurostat also reported of GDP growth of its major partners, USA and Japan. US GDP was 0.2% in the forth quarter, after increase by 1.3% in the third quarter. GDP in Japan increased by 0.9% in the forth quarter, after 0.3% in the third quarter. Compared with the same quarter of the previous year, GDP grew in the forth quarter by 2.5% in US and 1.8% in Japan, after 2.8% and 1.9% in the third quarter respectively.

Initial U.S. jobless claims dropped for the second consecutive week, after a large jump last month, the Labor Department reported Thursday.

Claims for the week ended Feb. 9 fell 9,000 to 348,000. The prior weekly claims level was revised to 357,000.

The four-week moving average of new claims gained 12,000 to 347,250.

U.S. continuing jobless claims fell 9,000 to 2.76 million.

The recent move by Venezuela's socialist leader Hugo Chavez to nationalize the energy sector has prompted some of the companies to seek compensation, Exxon Mobil in a stunning move took the battle to court.

The state run company PDVSA is barred from selling assets and Venezuela cannot withdraw $300 million from a US bank account, such a move could prevent Chavez from spending money of his so called 'social projects'.

An energy expert named Dino Barajas said "It makes the actions you took a year ago fairly pricey," referring to Chavez.

Forex fundamental analysis involves examining the intrinsic value of a nation’s currency based on economic news releases that reflect the strength, or weakness, of a country’s economy.

Fundamental traders follow these news announcements, known as “fundamental indicators,” because they paint a picture of a currency's strength in relation to other countries.

Fundamental indicators are reports that include statistical data on things such as employment, gross domestic product (GDP), international trade, retail sales, housing, manufacturing, and interest rates.

The stability, growth, or decline in any of these sectors may have an effect – direct or indirect – on the value of a country’s currency.

Central banks play a key role in the Forex market because they have the responsibility of changing the country’s "base" interest rate. A central bank has to find a fine balance when setting interest rates as it wants to maintain growth in the economy, but at the same time it has to be careful to curtail inflation.

The bank’s decisions on whether to raise, cut, or hold the interest rate fuels speculation in the Forex market, where the value of a currency, or group of currencies, changes in real time.

In addition to information about a country’s economy, the value of a currency is connected to national and international political events, elections, and changes in government trade policies.

The prices of sensitive commodities like oil and gasoline are an important fundamental indicator as high prices can hurt consumer spending and confidence, and curtail the activities of certain businesses and government services.

Natural disasters, terrorist attacks, and militarily actions in a sensitive region cause instability in the world and have a significant impact on the Forex market as they develop. These types of evens can be hard to predict in advance.

The ability to identify trends in macroeconomic indicators and reading central bank’s current and future actions is a valuable tool that comes from following financial news, watching the markets, and trading Forex.