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.
Posts Tagged ‘Single Currency’
Euro advanced yesterday but its progress has been halted today in the wake of dovish euro speculation
Posted by admin on October 1st, 2009
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Sterling relinquished strong gains vs euro yesterday as risk appetite eased
Posted by admin on October 1st, 2009
The British currency, unable to capitalise on strong early gains, lost ground against the euro yesterday, as an easing of risk appetite wore heavily on the fragile pound.Initially, sterling extended Tuesday’s rebound following a surprising jump in UK consumer sentiment, posting its biggest monthly boost in more than 14 years and signalling growing optimism about the UK economy. Additionally, the pound found support from signals that the Bank of England may not cut its bank reserves deposit rate anytime soon. In the afternoon however the pound gave up its gains, as weak US data brushed off on equity markets and sent the pound back down to a close of 1.0915.
An easing of risk appetite weakened the euro yesterday, but it has rallied back over $1.46 so far today
Posted by admin on September 30th, 2009
The single currency hit a two-week low against the greenback yesterday as a rise in risk aversion strengthened demand for the haven currency.The dollar rose for a second day as evidence that economies have yet to shake off the worst effects of the global recession spurred demand for the safety of the U.S. currency. Russia’s central bank cut its main interest rate, signaling that things are not as positive as they appeared previously, and spurring demand for the dollar. The greenback also found support following a disappointing US consumer confidence survey, which cautioned investors in their risk appetite.
The UK economy is showing signs of recovery, which has buoyed the ailing pound
Posted by admin on September 30th, 2009
In trading yesterday the pound picked itself up from 6-month lows against the single currency, gaining 0.7% as positive data buoyed investor sentiment. In a final revision, Britain’s second quarter GDP figure was reported as -0.6%, up from a previous revision of -0.7% and strengthening claims that the UK will exit recession in the third quarter. There was also positive data from the UK CBI retail sales index, which showed considerable improvement from last month, reaching levels well above expectations. Additionally, lending to individuals rose in August, reflecting both an increase in the willingness of high street banks to extend credit, and also improved consumer confidence in the market as they begin to take on more debt.
Dovish words from the ECB president dragged the euro lower against the dollar yesterday
Posted by admin on September 29th, 2009
Talk of a slow recovery in the eurozone strengthened demand for the dollar yesterday allowing it to recover 0.5% to 1.4618.Support for the single currency was curbed slightly following the words of European Central Bank President Trichet, who spoke yesterday of a slow recovery in the 16-nation region. The governing council of the ECB considers that it would be premature to declare the crisis over, stating that now was not the time to implement an exit strategy. Additionally, analysts have said that on the whole, although the euro / dollar price is biased to the upside in the medium term, the single currency is now being challenged by corrective weakness.
Pound edged higher against the euro yesterday and has consolidated its position this morning
Posted by admin on September 29th, 2009
Having traded in the red for most of the day, the pound rebounded in the afternoon to close the day marginally up at 1.0859. ECB President Jean-Claude Trichet in a speech yesterday stated that the European economy will likely recover slowly in the coming months. Trichet continued, saying that it was too early for the ECB to stop pumping liquidity into the economy or to raise interest rates, which slowed demand for the single currency. Additionally, data showed that consumer prices in Germany fell faster than expected in September, which was a steeper decline than the market had looked for, capping the euro’s gains .
The euro made ground against the dollar on Friday, but has relinquished its gains this morning
Posted by admin on September 28th, 2009
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.
Euro lost ground vs the dollar following an easing in risk appetite
Posted by admin on September 25th, 2009
The greenback continued to rally against the single currency yesterday, buoyed by a rise in risk aversion, to close the day at 1.4660. The dollar was under pressure yesterday after Wednesday night’s Federal Reserve meeting left investors with the message that US interest rates will remain very low for a long time.The euro also made gains against the dollar as the German Ifo Business climate survey rose to its highest level in a year in September, though it did undershoot forecasts of a stronger advance.However, the US dollar turned higher in the afternoon, after a report showed that sales of existing homes in America unexpectedly dropped in August, the first decline in five months.The euro also erased gains after major central banks, including the Fed, announced they were scaling back some emergency lending facilities.These gains were added to as US stocks turned negative in the afternoon, which further eased risk appetite in the market.This morning, the euro has recouped some of its losses after a statement from the G20 encouraged speculators to sell the low-yielding greenback.
The pound’s decline continues, as confidence in the currency is undermined
Posted by admin on September 25th, 2009
Sterling went into its steepest daily decline against the single currency in 5 months yesterday, losing 1.2%, after Mr. King revealed that he was content with the current value of the pound. Sterling hit its lowest euro price since early April, extending broad losses after Mervyn King said that a weak pound was supporting a necessary rebalancing of the UK economy.The euro was also supported by a further rise in business confidence in Germany. Although expectations for the Ifo economic survey were not matched in September’s report, the modest increase reflected optimistic future expectations for economic recovery.Demand was further eroded as the Daily Telegraph reported yesterday that the Bank of England was set to meet with economists in a “crisis” meeting designed to stem alarm and confusion over the QE program and the weakness of the pound.Additionally, once the pound broke below the 1.10 level, automatic sell off points were triggered, driving sterling down to a near six month low of 1.0922.The pound has slid further in trading this morning, losing another 0.5%, and currently trading around 1.0900.
The dollar reversed its slide yesterday, buoyed by stronger equities, but has fallen back today
Posted by admin on September 24th, 2009
Despite a reassertion that US interest rates would stay low, the dollar advanced over half a cent against the single currency yesterday as global stocks went into decline. During early European trading yesterday, the intense selling pressure on the dollar abated amid caution ahead of the Fed’s rate decision, with the pair holding around the 1.4800 level.In the evening, the statement from the Fed confirmed speculation that rates would remain low for an extended period of time, which sent the euro to a high of 1.4841.However, the greenback rebounded strongly, as traders remained cautious of betting aggressively against the US dollar following a sudden slide in US stocks.
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