Daily U.S. Forex Summary
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The US dollar rose to a 4 week high against the Euro
Wed, Apr 30 2008, 05:42 GMT
by Union Bank of California Team
The US dollar rose to a 4 week high against the Euro and stronger versus a basket of currencies on speculation that the Federal Reserve will pause interest rate cuts after this Wednesday’s widely expected cut of 0.25%. Despite US home prices dropping a record 13.8%, and oil prices reaching the $120/barrel level, the dollar continues to rally.
The euro fell to a 4 week low versus the dollar on short dollar covering. Investors that were dollar bears are losing money and must buy back the dollar at a loss to ‘cover’ their positions, thus driving up the dollar even further. Many view this is as a short lived dollar rally as Eurozone fundamentals continue to be stronger than the US and ECB comments point to no change in their interest rate view.
Sterling fell to a 1 week low against the dollar after UK retail sales hit a 2 ½ year low, comments from BoE’s Governor King failed to give confidence that interest rate cuts would stop, and mortgage approvals dropped to 9 year lows.
The Japanese yen is on track to have a worst month in almost four years against the dollar. Japan is closed for a holiday. The dollar is up over 7% against the yen since March.
The Canadian dollar remained relatively unchanged as market participants wait for tomorrows US Fed announcement. The loonie continues to trade range bound being influenced mostly by the US economy, the country’s biggest trading partner and commodity prices.
The Australian dollar and New Zealand dollar weakened against the dollar after reports signaled that the global slowdown will affect the growth in that region. New Zealand’s dollar fell after a government report the annual trade deficit unexpectedly widened. The Australian dollar fell after leading economic indicators fell for the third month.
Published on Wed, Apr 30 2008, 05:43 GMT
Archive
- The New Zealand dollar fell to one-week lows against the dollar
Published On Fri, Jul 3 2009, 05:46 GMT - The US dollar was mixed vs. most major currencies
Published On Thu, Jul 2 2009, 05:45 GMT - The US dollar rose today following a lower-than-forecast drop in US home prices
Published On Wed, Jul 1 2009, 05:45 GMT - The US dollar continues its decline as market risk appetite returns
Published On Mon, Jun 29 2009, 05:39 GMT - All focus will remain on the Fed statement release at 11:15
Published On Thu, Jun 25 2009, 05:33 GMT
Union Bank of California
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