Sterling fell as persistent bearish sentiment pushed it to an intra-day four-month low of $1.5796 against the dollar, before closing at $1.5882.The pound managed to pull back slightly from early losses after Chancellor Alistair Darling made a speech in which he reiterated the need to curb “reckless” bonuses. His comments suggested that the government would be taking forceful steps to firm up the fragile banking system which returned a certain amount of confidence to investors and prevented the pound from falling further. The pound also benefited from slight profit taking and rising stocks, but analysts said that despite expectations for improving economic data, the sterling / dollar price looks vulnerable to a further downside push with strong resistance materialising around 1.5750.
Posts Tagged ‘Economic Data’
Pound fell lower against the dollar yesterday, but found some support to ease its rate of decline
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Bearish sentiment towards the pound on Friday allowed the kiwi to make substantial gains
The kiwi dollar climbed another 1.2% on Friday, as demand for the high yield currency remained strong in the wake of positive economic data. Investors continued to move their funds into the riskier currency on Friday as data in the US revealed a strengthening economic recovery. Selling pressure on the pound was also high on Friday as comments from the BoE revealed their willingness to see the currency remain weak, undermining investor confidence. The kiwi also received support from a slight rise in oil prices. The New Zealand dollar tends to fair well when commodity prices are on the up owing to the nature of the economy.
The euro made ground against the dollar on Friday, but has relinquished its gains this morning
The euro made gains on Friday, following a two day slide, buoyed by improving economic data in the US, and closing at 1.4689. The single currency initially lost ground against the greenback as poor data on US core durable goods orders initiated a slight dollar rally. However, the euro erased early losses after data showed US consumer sentiment improved in September while sales of US homes edged higher in August. Consumer sentiment rose to its highest point since February 2008, supporting a rise in stock indices, which picked up from earlier losses, adding further support to the euro’s rise.
Positive economic data from NZ, keeps the kiwi rallying higher vs sterling
The New Zealand dollar advanced for the third consecutive day yesterday, as demand for kiwi assets remained high and as sterling weakness becomes ever more apparent. The kiwi gained another two and half cents (1.1%) yesterday after the BoE announced that it was perfectly content with a lower currency exchange rate and was unlikely to initiate any type of tightening into its monetary policy for the foreseeable future.The kiwi also continued to be supported by positive economic data from New Zealand, which supported claims that the RBNZ is considering raising interest rates.The New Zealand currency has found support today after the G20 did not indicate any imminent withdrawal of stimulus measures, triggering a rush back into higher-yielding assets.Initially the kiwi lost ground following disappointing local trade data released late last night, but it has rebounded strongly, climbing 0.75% in trading so far today.
Dollar Edges Up Against EUR, Crude Falls with Stocks
The Dollar took a break from its bearish run versus the EUR yesterday, but the long term trend could continue today. Driving yesterday’s reversal were losses in U.S. equities and stronger manufacturing data from the U.S. Today’s trading will be highlighted by key data releases from Europe and Britain, perhaps returning the EUR/USD to its bullish streak.USD – USD Profits as Stocks Sell OffThe U.S. Dollar held small gains late Thursday as pessimism about the strength of the economic outlook put selling pressure on stocks and higher-yielding currencies. The currency had been lower earlier with stocks rising after the Federal Reserve Bank of Philadelphia’s index on manufacturing jumped far more than forecast this month.
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USD Hits 1-Year Low on U.S Economic Pessimism
The U.S Dollar struck a one-year low against a basket of currencies on Wednesday, as investors reduced dollar holdings on views that the U.S. currency may weaken for now due to pessimism over the U.S. economy. Investors have been selling the greenback across the board as they speculate the Federal Reserve will be forced to keep its Interest Rates low for the time being to support the country’s fragile economy. Looking ahead, currency players will watch for the U.S. consumer price index (CPI) for August to be released later in the day.
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Dollar Down to Weakest Level of 2009
The U.S. Dollar fell versus the EUR but clung to small gains against other major rivals on Monday. This came as traders turned their focus to data coming this week and as the EUR and Yen hit technical levels that triggered some buying. The market focus now shifts to a slew of U.S. indicators to be released between Tuesday and Thursday that could determine whether the Dollar will continue to trade lower, or experience a pause.USD – Dollar Tumbles to 1-Year Low vs. EURThe Dollar tumbled to a 1-year low vs. the EUR in Monday’s trading.
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