The Dollar dropped against the Yen on Monday, pressured by sharp losses in US equities as remaining credit worries forced investors to reduce risky trades. Dollar gained against the Euro and Sterling on views that declining growth in Euro-zone and United Kingdom could force their Central Banks to cut benchmark interest rates.
Yesterday better-than-expected US existing home sales were little support to the Dollar as even a recovery in Housing market is seen as critical to easing some of the concern on the US economy.
On Tuesday, currency investors will look at German Ifo data, US housing, US (more…)
The Dollar has extended its rally of the past month, touching a 2008 high against a basket of currencies on the view that economic weakness, once US, is spreading globally. A jump in US consumer confidence in August to 56.9 vs 51.9 added to the Dollar advance. US housing data had little impact on Dollar trading. And investor did focus later on the release of the minutes of the last FOMC meeting.
The Ifo German business climate index for August fell more than expected to a three-year low of 94.8 vs 97.5, while German GDP
contracted in Q2 for the first time since 2004.
Ongoing worries that ot (more…)
The Dollar jumped to a 6-month high against the Euro on Friday, helped by another drop in oil prices and growing views the US economic slowdown may be bottoming while growth in the euro zone stalls. It also posted a fifth week of gains as investors shifted their view on the global economy’s ability to withstand a downturn initiated in the United States.
Data in the US on Friday showed an unexpected rise in manufacturing activity in the New York state area and an increase in industrial output and consumer confidence. By contrast, reports on Thursday showed the euro zone economy contracted in (more…)
The Dollar surged on Friday, recovering from the previous day’s losses, as gloomy British growth data backed views of a slowing global economy and raised prospects of interest rate cuts outside the United States.
A sharp drop in US crude oil prices to below $115 per barrel and comments by influential investor Warren Buffett that he has no bets against the Dollar also added to the US currency’s upward momentum.
Federal Reserve Chairman Ben Bernanke’s comments that a stable Dollar and falling commodities should help slow inflation this year and next. His remarks on Friday prompted analyst (more…)
