The dollar slid further against the euro yesterday as solid results from JP Morgan Chase and rising equities stoked optimism about an improving global economy.The euro extended its rally, hitting a fourteen-month high of 1.4943 against the greenback, boosted after data showed an acceleration in eurozone industrial output. Industrial production in eurozone rose for the fourth straight month in August, providing further evidence that the area’s economy is on track to post its first rise in gross domestic product in the third quarter since the first quarter of 2008. Pressure on the dollar was also added as every major stock market in Europe rose after New York-based bank JP Morgan Chase announced strong third-quarter earnings, adding to risk appetite.
Posts Tagged ‘Single Currency’
The single currency continues to strengthen against the dollar, posting a fresh 14-month high
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Bearish sentiment towards the pound prevailed yesterday, but the sterling is rallying strongly against the euro today
The pound relinquished early gains against the single currency, closing marginally down at 1.0704 as rising risk appetite benefited the euro. Sterling initially rose against the single currency yesterday after data showed a smaller than expected rise in the number of UK jobless claiming benefits, and the overall unemployment rate unexpectedly held at 7.9%. This data prompted investors to further pare back some of the heavy bets built up against sterling in recent weeks, which have pushed the price to multi-month lows. In addition, some analysts have said that speculation over an extension of quantitative easing could be overdone, and that the pound / euro price could have correction potential.
The single currency is pushing up towards 1.49 against the dollar as risk appetite firms
The single currency reached a 14-month high of 1.4874 against the greenback yesterday, advancing over a cent, as investors refocused on the outlook for US interest rates.In early trading, the single currency suffered a setback as the German ZEW Economic Sentiment index dropped to 56.0 from 57.7 in September, its first fall in three months. However, the dip provided a good buying opportunity for a market that remains broadly bearish on the dollar, allowing the euro to push higher. Analysts also noted that the weakness of the dollar was due in part to comments from a Japanese Ministry of Finance official, which reiterated the recent stance to accept the onging strength of the yen.
Euro posts gains against the US dollar as risk appetite ushers investors into high-yielding currencies
The single currency recovered some of the losses it incurred on Friday, gaining over half a cent against the greenback as risk appetite in the market strengthened.Rallying equities yesterday, which have been boosted by stronger commodity prices and optimism about the US corporate earnings season, also buoyed support for the euro, allowing it to briefly trade over 1.48. Analysts also noted that while in other nations future policy remains hazy, the single currency benefited from a clearer outlook for monetary policy in the eurozone. Additionally, comments from the president of the St Louis Federal Reserve that the US economy faced risks from rising inflation, stoked speculation that US interest rates might rise sooner than had been expected, but investors remained bold in their exposure to risk, continuing to sell the dollar.
Euro advanced against the greenback, buoyed by a relatively upbeat ECB rate statement
The single currency climbed to a two week high of 1.4815 yesterday as investors continued to sell the dollar to fund riskier trades. The single currency returned to its recent upward trend, initially climbing half a percent, as investors took up dollar selling in the wake of further evidence of global economic recovery. Australian employment data revealed a rise in jobs in September, reinforcing risk appetite and triggering broad dollar selling as its haven appeal weakened. The single currency held its gains in the afternoon after the European Central Bank left interest rates unchanged at a record low 1.0%, as the market expected.
The sterling/euro price closed relatively unchanged yesterday as both the MPC and ECB held rates.
Sterling was unable to build on Wednesday’s gains, as trading between the pair held steady following a relatively muted market response from the two interest rate statements.Yesterday morning, the pair remained tightly range bound as investors held back from taking positions ahead of the rate statements from the two central banks. Analysts noted that people had taken sterling a lot lower recently and maybe now they were beginning to think that the BoE would not extend quantitative easing At midday it was revealed that the BoE did decide to hold both the interest rate and the asset purchase scheme at their current levels.
Sterling posted gains vs the single currency, with the market forecasting no change in MPC policy
Having hit a fresh six-month low against the single currency in early trading , the pound rebounded yesterday, to close up half a cent at 1.0864. Unexpectedly weak data in the UK manufacturing industry on Tuesday continued to weigh heavily on the pound, dragging sterling to a 6-month low of 1.0781. With little data out in either the UK, the eurozone, or the US yesterday, markets initially continued to take direction from Tuesday’s data, which supported sterling selling. The euro trimmed its gains though following the second quarter final GDP figure for the eurozone, which was revised downward from a contraction of 0.1% to 0.2%, dampening the broadly positive sentiment towards the currency.
Single currency pushed higher vs the dollar, which came under heavy selling pressure
The single currency made strong gains yesterday as the dollar came under pressure about its future status as the chief currency used in oil trades.The single currency broached two week highs as a report came through that Arab States were in secret discussion to find alternatives to using the dollar in oil trades. Major oil-producing countries have denied the report, but markets reacted strongly to the news, which has added fuel to arguments that the US currency’s global status is coming under pressure. Analysts noted that the dollar’s sharp fall was a good example of poor sentiment toward the US currency being vulnerable to speculative selling.
No reprieve yet for the ailing pound; continues to slide further against the euro
The pound slid for the third consecutive day against the single currency, losing 0.6% following a fall in industrial output, to close at 1.0812.Sterling received an early boost yesterday morning as a Halifax survey revealed a further rise in UK house prices of 1.6% in September, buoying hopes of a strengthening economy. However, such hopes were soon dashed after data revealed an unexpected fall in UK manufacturing output, which raised doubts over recovery prospects. British manufacturing fell 1.9% on the month in August, its steepest fall since January, which compares to a downwardly revised rise of 0.7% in July, and fell some way short of analysts’ predictions of a 0.4% increase.
The euro has made strong gains against the dollar, buoyed by a rise in risk and pressure on the US currency
The euro posted solid gains against the greenback yesterday, as positive US data buoyed demand for the ‘riskier’ single currency. The dollar remained weaker against the euro in trading, continuing its decline after last week’s weaker-than-expected US data failed to extinguish risk appetite The dollar was also lower as traders read the absence of any new commitment on currencies from the G7 meeting over the weekend as a green light to sell the US currency. Traders were bracing for stronger language to arrest the slump in the US currency but no mention of dollar weakness was made, allowing the greenback’s downward trend to continue.
The euro posted gains against the US dollar on Friday and has reached back over 1.46 this morning
The single currency shrugged off worse-than-expected US non-farm payrolls data to post gains, closing up 0.2% at 1.4574.Date revealed that the US economy lost 263,000 jobs in September, which was more than had been expected, according to official non-farm payrolls figures. The Labor Department revealed that US unemployment rate rose to 9.8%, fueling fears that the labour market could undermine economic recovery. The euro initially dropped sharply to a three-week low of 1.4485 on the release of the U.S. payrolls report, as investors were encouraged to the relative safety of the greenback.
Sterling lost ground against the euro on Friday, and has dipped below 1.09 in trading this morning
Sterling gave back recent gains against the euro on Friday, losing 0.3% as risk aversion weighed heavily on the fragile UK currency. Sterling struggled in the morning as investor’s booked profits after the pound’s gains against the euro on Thursday, but trade was initially range bound ahead of US payrolls data. The pound also failed to gain traction after a Nationwide housing market survey showed prices were steady on the year in September, the first time since March that prices have not fallen on a year-on-year basis. In the afternoon, US payrolls data disappointed expectations, justifying the rise in risk aversion in the market and sending global equities spiralling further downward. Indeed, the FTSE 100 went back below the psychological 5000 level, which was particularly damaging for the pound In trading this morning the price has continued to climb in the single currency’s favour, though sterling may find support should UK services meet expectations and reveal a stronger month on month figure at 09:30BST.
The euro slid sharply against the dollar yesterday, weighed down by a rise in risk aversion
The dollar rallied against the single currency yesterday after a run of disappointing manufacturing data left investors unwilling to take on risk.The single currency took a sharp downward turn, weighed down by comments from a top European official who expressed concern about the value of the euro. He said that European finance ministers would discuss the single currency’s recent appreciation at the G7 meeting this weekend. Waning risk appetite amid a mixed batch of US economic data also prompted investors to seek the perceived safety of the greenback. Data yesterday showed US initial jobless claims rose in the latest week, a reminder that the labour market is far from stable.
Pound advanced against a broadly weaker euro yesterday, but has stumbled in trading this morning
Sterling climbed half a cent against the single currency yesterday, helped by a weaker euro, which was undermined by comments from an EU official.In early trading, the pound was able to brush off an unexpected fall in the UK Manufacturing industry, which contracted to 49.5 in September, from 49.7 in August, against the market expectations of an increase to 50.3. The pound then gained against a broadly weakened single currency as European officials expressed discomfort over the euro’s recent rise in value. A top European official announced that he would discuss the EU’s concern over the recent appreciation of the euro at the G7 meeting this weekend.
Euro advanced yesterday but its progress has been halted today in the wake of dovish euro speculation
The euro pushed higher against the dollar yesterday in choppy trading, even as disappointing US economic data weakened stocks.The single currency made strong gains yesterday morning, supported by the results of the ECB cash tender offer. The volume of bids was lower than expected, which implied that financial conditions in the eurozone were improving and there may be less need for the ECB to inject money into the market. Additionally, German unemployment fell again in September and even after seasonal adjustments, the number of jobless fell by 12,000, resulting in an overall dip in the unemployment rate to 8.2%, which buoyed demand for the single currency.
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