Daily Market Report
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The USD appreciated against most major currencies yesterday
Tue, Jun 10 2008, 12:22 GMT
by Wachovia Research Team
The USD appreciated against most major currencies yesterday after domestic pending home sales were reported much higher than expectations at 6.3%. Bernanke reiterated his stance on USD yesterday when he spoke in Massachusetts by saying that "the FOMC will strongly resist an erosion of longer term inflation expectations."
Markets have reacted strongly to the hawkish comments as the US 2 year treasury yield curve has risen sharply and risk appetite in the FX market has made a strong return with JPY losing ground against both the USD and EUR. Overnight, the USD gained nearly 1% against the EUR, GBP and CHF and over 0.5% against the CAD due to the market now pricing in a rate hike by the Fed in the coming months as the recent energy price gains have increased inflation risks.
Today, the Bank of Canada will announce its rate decision at 9 this morning with most market participants expecting a quarter point cut. Also, look for domestic trade balance at 8:30 and listen for Paulson's comments at 10 AM to support Bernanke's from yesterday.
Published on Tue, Jun 10 2008, 12:55 GMT
Archive
- Risk aversion was the main theme of yesterday's trading session
Published On Fri, Jul 3 2009, 12:25 GMT - The US dollar and the yen fell against most major currencies
Published On Thu, Jul 2 2009, 13:25 GMT - The US dollar strengthened against the euro and the pound yesterday
Published On Wed, Jul 1 2009, 12:25 GMT - Daily Market Report
Published On Tue, Jun 30 2009, 12:50 GMT - The Swiss franc ended the week lower against the euro
Published On Mon, Jun 29 2009, 13:56 GMT
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