The Dollar fell for a second straight session on Wednesday, weighed down by surprisingly weak US durable goods orders and remarks by ECB chief Jean-Claude Trichet that Euro-zone rates were at the right level.
Analysts said Trichet?s comments, with news that German and French business confidence unexpectedly improved in March, dampened expectation of a soon ECB interest rate cut. That left investors focusing on the widening interest rate differential between the US and the Euro zone.
The Federal Reserve has slashed its benchmark overnight lending rate by 3% to 2.25% since mid-September, while (more…)
The Dollar rose on Thursday on views liquidity conditions for banks were not as dire as initially thought after a tepid Federal Reserve auction to swap poor-performing investments. Analysts said the Dollar also got a lift from investors covering short positions after a recent sell-off and warned that underlying sentiment on the Dollar remained bearish.
Analysts said investors were merely pausing before driving the Euro to fresh all-time highs against the Dollar, with US economic data continuing to point to further Federal Reserve interest rate cuts. They also said reports showing the US e (more…)
The Dollar rose against a basket of currencies on Monday after a surprise jump in US existing home sales gave optimism over the economic outlook. Stock exchange has been boosted by risk appetite as JPMorgan proposed a fivefold increase offer for Bear Stearns. JP Morgan had upped its offer for Bear Stearns to $10 per share from $2 previously. This boosted US equities and investors’ appetite for riskier trades.
The New York Federal Reserve said it would provide $29 billion in term financing to facilitate JP Morgan’s acquisition of Bear Stearns and will form a privately managed company to oversee (more…)
The Dollar fell broadly on Tuesday, posting its steepest loss against the Euro in two weeks, sparking a rebound in commodity prices and helping to preserve investors’ appetite for risk.
News that US consumer confidence in March plunged to a five-year low, while expectations for the future dropped to their lowest level in 34 years also added to selling pressure on the Dollar. A separate report showed US home prices for January declined in 16 of the 20 regions measured.
Concerns about the health of the US economy and the global financial sector, which were heightened by the downbeat Consumer Con (more…)
