The Dollar eased on Monday, amid concern losses at US financial companies will continue to weigh on the slowing economy, after Merrill Lynch said Lehman Brothers may post a loss in the Q3 and take an additional $2.5 bio write-down on home loans for the period.
Negative sentiment was completed by comments from Minneapolis Fed President Gary Stern saying that the next two to three quarters could be disappointing.
British house prices fell for a tenth straight month in July causing the EurGbp to rise to a session high of 0.7933 before retreating to last trade at 0.7894. Unexpectedly strong Ne (more…)
The Dollar soared to a one-month high against a basket of currencies on Tuesday, benefiting from a steep drop in oil prices and an unexpected rise in US consumer confidence.
Analysts said Merrill Lynch’s announcement late on Monday of yet another write-down and capital-raising exercise also helped support the Dollar, as they raised hopes the turning point in the yearlong credit crisis was close.
Oil fell as low as 120.42 yesterday before ending only $2.5 down at 122.19. A decline in oil prices tends to benefit the Dollar, as it eases some of the growth concerns.
Second-quarter US (more…)
Last week upbeat readings on US durable goods orders, new home sales and consumer sentiment released buoyed the Dollar by lifting some of the gloom over the US economy.
The ongoing slide in crude oil prices is also supporting the greenback.
FX market is eyeing the direction of crude oil prices and US non-farms payrolls data, which is due on Friday.
European corporate earnings due this week may provide some direction to the Market.
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The Dollar rallied to a one-month peak against the Yen and a two-week high against the Euro on Wednesday, supported by a further drop in Oil prices and improved confidence in the US financial sector.
The Dollar also continued to benefit from comments from Philadelphia Federal Reserve President Charles Plosser, who said on Tuesday that the US central bank may have to raise interest rates sooner rather than later to combat inflation. Futures markets are pricing a 68% chance against 52% the week before for the Fed to increase benchmark lending rates in September, to 2.25% from current 2%.
The R (more…)
