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.
Posts Tagged ‘Single Currency’
Weak US data enabled the US dollar to continue clawing back losses against the euro
Posted by admin on October 29th, 2009
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Falling global equities enabled the pound to post gains against the euro
Posted by admin on October 29th, 2009
The pound continued to advance against a broadly weaker single currency yesterday, hitting a six-week high of 1.1167 as investors trimmed their euro holdings.Preliminary CPI data from Germany revealed that consumer prices remained flat on the year in October. Monthly data showed that the index did rise by 0.1% in October from September, though this rise failed to garner support for the euro.The markets also saw a slight withdrawal of risk activity yesterday as weak housing data in the US renewed concern over the health of the global recovery.The data dragged European equities down to three-week lows, which appeared to impact more severely on the single-currency, enabling the pound to gain.This morning, the pound is consolidating its position above 1.1100, with analysts reiterating that sterling is likely to remain in a holding pattern until next week’s BoE asset purchase decision.Investors are cautious amid uncertainty over whether the Central Bank will extend their quantitative easing programme, and so sterling movements may continue to be dictated by risk appetite in over the coming days.
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.
Euro is more expensive than a pound before the end of the year
Posted by admin on October 27th, 2009
Today, one of six bank Moors BNP Paribas said that in 2009 the pound sterling could fall to parity with the euro. Today, steam EUR / GBP is trading at around 0.9070, up from 0.84 in mid-June. The jump came when it became clear that the Bank of England will continue to build a program to repurchase the assets, despite the improvement in the global financial sector. What happens to the pound and the UK economy is studying financial analyst FxPro Alexander Kuptsikevich.In Russia, considered to be the beginning of the crisis in September last year. But in fact the developed world crisis began one year earlier.
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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 pound rebounded strongly vs the euro yesterday with analysts suspecting that sterling could be oversold
Posted by admin on October 27th, 2009
After an unsteady early session, the pound rebounded strongly from Friday’s sell off, to close 1.1% up. The pound recovered steadily through the day after data revealed that the German Gfk consumer sentiment indicator dropped to 4.0 from 4.2 in October, weaker than the median forecast of 4.5, dulling demand for the single currency.In addition UK business confidence rose to the highest in 18 months, according to a third-quarter survey, with 19% of executives polled saying the outlook for business is “good” or “very good,” up from 9% in the previous quarter, which stoked demand for the pound.Analysts hypothesised that the pound may be considerably oversold at its current value, which does present a good opportunity for British businesses.Analysts also noted two opposing arguments developing: the first is a widely held view that based on better PMI survey data there is a good chance that GDP data for Q3 will be revised up.
The single currency pared recent gains on Friday, but has recovered in trading this morning
Posted by admin on October 26th, 2009
The single currency slipped back from multi-month highs against the dollar following positive US housing data, with the pair closing the week at 1.5006. The US dollar found support after a report showed that US existing-home sales improved more than expected last month. Resales of US houses jumped 9.4% in September to a seasonally adjusted annual rate of 5.57 million, the highest rate in more than two years, which stemmed the recent broad dollar sell off. Analysts stated that the recent bout of euro strength could now be looking over-stretched, given huge accumulation of short positions on the dollar.
Euro managed to push through $1.50, but has slipped this morning following mildy disappointing Chinese data
Posted by admin on October 22nd, 2009
The single currency resumed its upward march against the greenback yesterday, finally broaching the 1.50 mark, to close up half a cent at 1.5015. In early trading, the euro retreated from near 14-month highs as some investors bet European policy makers would say they are still concerned that the euro’s strength will harm the economic recovery. Analysts also said that the single currency’s sharp fall against the pound weighed on the euro/dollar price, which has recently remained anchored just below the $1.50 level. However, the dollar relinquished its gains in the afternoon as rising U.S.
The pound posted a one cent gain against the euro yesterday, buoyed by the MPC minutes
Posted by admin on October 22nd, 2009
Sterling reached a one-month high against the single currency, rallying strongly as the BoE’s latest policy meeting made no mention of further QE.The MPC minutes gave substantial support to the pound, which advanced 1.1% to reach a high of 1.1112, after they sounded a more positive tone than recent statements from policymakers suggested. It was revealed that the nine member committee had voted unanimously to leave the size of its asset purchase scheme unchanged at £175 billion, as had been widely expected, and made no direct reference to extending QE in the future.
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.
Euro pushes higher but finds strong resistence at $1.50
Posted by admin on October 20th, 2009
The single currency resumed its climb against the dollar in trading yesterday, supported by rising confidence in the global recovery, closing the day up 0.4%.The euro hovered just below the psychologically important 1.50 level as the US dollar remained under selling pressure on expectations that US interest rates will remain pinned at record lows well into 2010. The single currency also found support as some investors speculated finance ministers from the 16-nation region meeting in Luxembourg would focus on the currency’s strength. The dollar came under further pressure as the continued confidence over the prospects of a global economic recovery were reaffirmed as the Dow Jones opened up over 10,000, keeping haven demand for the dollar in check. Late in the afternoon, the Fed added to the greenback’s woes after stating that it has been testing its reverse repurchase agreement tool but is not about to use it, suggesting that US monetary policy is not set to tighten just yet.
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.
The euphoria surrounding ruble is close to completion
Posted by admin on October 16th, 2009
Financial Analyst FxPro Alexander Kuptsikevich: This week the markets remained within the previous trends, and the second half of the week was marked by profit taking. Euro rose to 1.4966 to the dollar, however, on Thursday and Friday, growth has not continued. Two years ago, with this level pair Eur / Usd was thrown back into the six figures down for four months. This is probably inhibits players from strong buying the single currency. Broken trends in the yen and the pound, to identify profit-taking in gold.Just this week there was another significant event for Russia: Oil vybilas beyond the corridor 65-75, referring to the level of $ 78 per barrel.
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Positive economic data supported euro gains vs the US dollar yesterday, but the price has pulled back this morning
Posted by admin on October 16th, 2009
The single currency pushed higher once again as the greenback suffered from rising appetite in the wake of positive economic signs.The dollar initially made after ECB President Trichet said that the US government and the Federal Reserve should pursue policies supporting a strong dollar and that excessive foreign-exchange volatility is an “enemy.” However the euro trimmed its losses in the afternoon following positive US data, which bolstered expectations that the economy is recovering. US jobless claims beat market forecasts dropping a further 10K week-on-week. The US CPI figure also rose marginally to 0.2%, supporting growing optimism over the economic recovery.
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