The dollar snapped four days of gains against the euro as the US economy returned to growth in the three months through September, officially exiting recession.The US government’s advance estimate showed gross domestic product grew at an annualised rate of 3.5% in the third quarter, the first rise since the second quarter of 2008, which beat expectations for a reading of 3.3%. The data reduced the safe-haven appeal of the greenback, encouraging investors to sell their dollar holdings in favour of growth-linked currencies, enabling the euro to climb over a cent on the day.
Posts Tagged ‘Losses’
Euro clawed back recent losses as investors moved into the “riskier” currency
Posted by admin on October 30th, 2009
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Weak US data enabled the US dollar to continue clawing back losses against the euro
Posted by admin on October 29th, 2009
The single currency slipped further away from recent 14-month highs against the dollar yesterday, losing nearly a cent to close down at 1.4707.The US dollar rose, stretching a rally against the euro to a fourth day, supported by weak U.S. economic data that weighed on equity markets and led investors to seek safety in the greenback and cut exposure to assets perceived as risky. Initially though, the euro pared early losses after data showed core US durable goods orders were better-than-expected in September. The report revealed that the core figure, which excludes transport equipment, rose by 0.9%, higher than forecasts of a 0.6% rise, strengthening risk appetite in the market.
US dollar continues to push higher against the euro, as consumer confidence stumbles
Posted by admin on October 28th, 2009
The dollar rose against the single currency for a third consecutive day in its longest advance since August, as a report showed US consumer confidence fell this month. The euro struggled in trading yesterday after data showed that public sector lending in the eurozone declined by 0.3% in September compared to this period last year. The figure raises concern that there are still few signs that the ECB’s unlimited provision of liquidity to banks is prompting any pick up in eurozone broad money lending, which could put pressure on the single currency.
Pound edges higher against a stronger dollar, which found support from weak consumer sentiment
Posted by admin on October 28th, 2009
Sterling closed up against the dollar yesterday, but slipped back nearly a cent from its intra-day high after a survey showed that consumer confidence in the US disappointed market expectations. In early trading, the markets continued to take the pound higher with analysts noting that long term investors and Asian reserve managers were attracted by sterling’s one-week low. This trend was maintained as the UK CBI retail sales index advanced to a balance of +8 in October from a balance of +3 in September, the largest advance since June 2007, beating forecasts.
Pound pushes up against the euro, spurred by positive sales figures
Posted by admin on October 28th, 2009
Sterling pushed back over 1.10 in trading yesterday as data revealed a pick-up in UK realised sales dulling concerns over the health of the British economy. The pound continued to recover last week’s losses as the UK CBI realised sales index revealed a significant monthly increase in sales volumes, beating market forecasts. Conversely data also showed that lending to the eurozone’s private sector declined in September compared with the same period a year earlier, highlighting notable constraints on financing to companies and households that could damage the region’s economic recovery.
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The dollar is recovering losses against euro on speculation that the Fed may signal a tightening of monetary policy
Posted by admin on October 27th, 2009
Having traded strongly against the dollar in the early session, the euro surrendered gains in the afternoon session, pulling the price down sharply to close a $1.4873. Initially, the greenback hit a fresh 14-month low versus the euro after the Beijing-based Financial News revived concern over the status of the dollar, stating that China should raise the amount of yen and euros held in its foreign-exchange reserves.However, the dollar pared its losses after the author of the report said that it was purely a “personal view”.In addition, the issue of diversification has been a topic for quite a while and the impact of the news was short-lived.
The kiwi edged higher against the pound but has weakened this morning following important Chinese data
Posted by admin on October 22nd, 2009
Having given up ground to the UK currency in early trading, the kiwi rallied steadily through the afternoon, to close marginally up at 2.1833. The pound found support yesterday after the BoE’s policy minutes revealed no direct discussion over further loosening the current monetary policy. In the wake of the news, sterling posted an intra-day high of 2.2074 as investors grew more confident in the outlook for the UK economy. However, the New Zealand dollar capped its losses as Alan Bollard, governor of the Reserve Bank of New Zealand, in a speech appeared surprisingly reserved over the recent appreciation of the kiwi dollar.
Sterling has resumed its recent upward trend against the kiwi, buoyed by brief market selling in high-yielders and by the MPC minutes
Posted by admin on October 21st, 2009
Sterling climbed over a cent and a half against the kiwi in trading yesterday as the market briefly turned bearish on higher-yielding currencies. The pound reversed losses incurred on Monday, but closed the day some way from its intra-day high of 2.2000 as investors held back from taking significant positions ahead of the UK MPC minutes released today. The kiwi dollar, which has broadly risen as the global economy shows increasing signs of recovery, fell back as demand for “riskier” assets stumbled following some weak economic data from the US economy.
Lower equites, dulled risk appetite yesterday enabling the US dollar to post gains against the euro
Posted by admin on October 21st, 2009
The single currency slipped back from a fresh 14-month high against the dollar following further comments from the ECB that expressed apprehension over the euro’s strength. In early trading, options buying once again prevented the euro from pushing through the psychologically important $1.50 level, posting a high of $1.4993. The single currency was supported after further positive corporate earnings weighed on haven demand for the dollar, emboldening investors to sell the low-yielding US unit to fund the purchase of riskier, higher-yielding assets elsewhere. However the euro fell back as the ECB repeated their support for the US Treasury’s self-professed strong-dollar policy, and expressed concerns over recent “volatile” trends in the market and the strength of the single currency In the afternoon Wall street slipped as tame US inflation data offset strong quarterly earnings from Apple, denting investor appetite to sell the low-yield dollar. The economic data, which showed that the US PPI unexpectedly dropped by 0.6% last month, disappointed market expectations and helped the greenback recover earlier losses, though analysts said that it would remain under pressure as long as stocks continued to show an upward trend.
Pound slid back against the euro yesterday, but has rebounded strongly in trading today
Posted by admin on October 21st, 2009
Sterling dipped slightly against the single currency, relinquishing gains in the afternoon as US equities slipped back, closing the day down just 0.1% at 1.0958. In early trading, investors picked up on comments from the ECB President who added to remarks from other eurozone officials expressing worries about the strength of the single currency. In response the markets took the euro slightly lower, enabling the pound to reach up over 1.10, near Monday’s 3-week high. In addition, the pound gained slight support after the UK public spending deficit in September fell short of market expectations, buoying investor sentiment.
Pound reached over $1.64 yesterday, but has slipped half a cent in trading this morning
Posted by admin on October 20th, 2009
Having traded in the red during the morning session, the pound rebounded back over $1.64, climbing for the fifth consecutive day and reaching a near one-month high of $1.6422. The pound initially fell against the dollar, relinquishing last week’s gains after the Sunday Times said Bank of England policy maker Adam Posen may support an extension of the central bank’s asset-purchase programme. Posen added that he was “not worried about overshooting inflation right now,” which many analysts have said will become an issue as the economy begins to grow. Last week, following the words of Mr Fisher, the market moved to discount a scenario where it was more likely that asset purchases would be paused.
Having held steady in trading yesterday, the pound has slipped back this morning as equity markets stumble
Posted by admin on October 20th, 2009
Sterling suffered early losses against the euro yesterday after a BoE member hinted that the QE programme should be extended, but the pound recovered to close the day on level footing. Adam Posen stated that the central bank should continue its quantitative easing programme as the financial system has yet to show signs of a sustained recovery. He added that he was unconcerned about the possibility of further monetary stimulus risking a rise in inflation. His comments appeared to eclipse positive house price data from property website Rightmove, which showed that asking prices for homes in England and Wales were up on an annual basis for the first time in more than a year in October.
The single currency slipped back on Friday following weak Bank of America earnings
Posted by admin on October 19th, 2009
The US currency snapped a four-day losing streak against the euro, rising from a 14-month low, as investors cautioned their risk activity following further corporate earnings reports. The dollar strengthened as Bank of America earnings fell short of expectations, sparking profit taking in the euro, as well as higher-yielding currencies. The Bank reported losses of $1 billion in the third quarter, which sent equity markets down having rallied on the more positive earnings of other major US banks and corporations earlier in the week. This report aided the dollar, strengthening haven appeal and bringing the US currency up from multi-month lows against the euro.
Euphoria over the corporate reporting continues
Posted by admin on October 15th, 2009
Currently scheduled reports earnings Citigroup, Goldman Sachs and Google. If the results exceed expectations, stock markets continue to rise.Bank “JPMorgan” yesterday issued a strong quarterly report, which, together with the report “Intel” has become the main acting force growth on the stock exchanges. Income Statement JPM consisted of two parts: the investment bank recorded record revenue, but the strongest credit division had suffered losses and signaled a possible new losses.The current strengthening of equity markets was strong enough, but the lack of internal corporate customers and increased demand for funds with fixed income indicate that the rally outliving itself; until the 2009 fixed-income funds have attracted 18 times more investment than stocks.Results of the printed record of the Federal Committee on Peacekeeping Operations on the open market in the U.S. triggered selling of the dollar, as the majority of committee members were in favor of an increase in purchase of assets to stimulate economic recovery.Saxo Bank
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Sterling is currently trading higher against the aussie following upbeat comments and a move to cash profits
Sterling recovered some of its recent extensive losses against the aussie dollar yesterday, climbing over two cents, to close up at 1.7668. Bank of England member, Paul Fisher, said yesterday that policy makers would be more likely to pause asset purchases in their upcoming meeting in November, giving themselves the option of “doing more later,” rather than stopping them. His comments were taken to read that the MPC is unlikely to extend their quantitative easing programme, supporting a slight rise in confidence in the UK economy, strengthening the pound. In broad terms, the aussie traded strongly against most currencies yesterday as positive economic data in the US led to investors adding to their long positions in the higher-yielding currency.
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