The Dollar edged lower against the Euro and trimmed gains versus other European currencies on Wednesday as comments from a Federal Reserve official and a key economic report affirmed expectations for further rate cuts. However, it posted steep gains against the Yen, buoyed by sharp gains in the stock market, with investors going back into riskier assets.
Government data showing New Orders for long-lasting US-made goods dropped for a third month in October, with companies appearing wary about making new investments.
Most analysts believe the Dollar could further decline given the weak tone in (more…)
The Dollar rallied against most currencies on Thursday, buoyed by demand from US corporations seeking to square their books by month-end and those scrambling for cash to cover a seasonally thin year-end period.
Analysts said US data on jobless claims and New Home Sales for October did little to alter expectations that the Federal Reserve will reduce interest rates by 0.25 to 4.25% next month after it cut them by a cumulative 0.75 since September to cushion the economy from a severe housing slump and credit market turbulence.
Fed Chairman Bernanke said late on Thursday a resurgence in financial (more…)
The Dollar slid further to a fresh 2-1/2-year low against the Yen on Monday in line with falls in US equities, as renewed credit worries affirmed expectations that more US rate cuts are imminent. The interest rate futures market has fully priced in a 0.25% monetary policy easing by the Fed when it next meets on Dec. 11, to 4.25% and show a 20% implied chance it could cut rates by a 0.5% instead.
EurUsd was up 0.26% at 1.4877, within sight of the lifetime high of 1.4967 set on Friday. ECB Governing Council member Nout Wellink said on Monday its rise against the Dollar was not of “immediate conc (more…)
The Dollar gained broadly on Tuesday as news that Citigroup would sell a $7.5 bio stake to the Abu Dhabi government triggered a wave of buying from traders who rely on computer models. The overnight Citigroup news restored confidence in battered US banks, fueling a steep rally in the stock market.
The Dollar pulled away from a 2-1/2-year low against the Yen touched on Monday to trade at 108.82, up 1.37% and on track for its biggest one-day gain since late August. The Yen fell broadly as news of the Citi stake sale prompted a recovery in the Nikkei share index, fueling demand for relatively ris (more…)
