• Home ::
• Fundamental ::
• Market View ::
• Daily U.S. Forex Summary

• Send
• Print
• Add To
• Rss

Daily U.S. Forex Summary

b5197d95-bd55-442a-9c4e-254a9051d142

1

0

The Eurozone Business Climate Indicator was down 1.78 in October

Fri, Oct 30 2009, 05:33 GMT
by Union Bank of California Team

Union Bank of California

The US dollar fell vs. most major currencies as a government report showed that the US economy grew 3.5% in the third quarter, beating forecasts of 3.2%, which increased investor risk appetite. Initial jobless claim was slightly higher than expectations with 530,000 claims, though continuing claims declined by 148,000 to 5,797,000 which was lower than forecast.

The euro rose against the dollar after a number of positive reports helped spur demand for the currency. The Eurozone Business Climate Indicator was down 1.78 in October, beating expectations of a 1.90 fall. Economic confidence in the Eurozone was 86.2, beating forecasts of 84.4. European Central Bank council member Axel Weber said in a speech that the central bank may start to withdraw its emergency stimulus measures next year.

The Sterling rose against the dollar after reports that showed mortgage approvals increased. Lenders granted 56,215 home loans, an 18-month higher in September, which beat forecasts of 53,600 loans.

The Japanese yen declined against the dollar as positive economic reports in the US and a rise in equities helped investors sell the safe-haven currency.

The Canadian dollar advanced against the dollar from a three-week low as a rise in crude oil prices helped the commodity-linked currency. Investors stay cautious as the Bank of Canada issued warnings earlier this week stating that the nation’s economic recovery is “jeopardized” by the strength of the currency.

The Australian dollar and New Zealand dollar are both sharply stronger against the dollar after a rise in American and European equities and commodities increased demand for higher-yielding assets. The Aussie and kiwi were initially hurt by a fall in Asian equities last night. The kiwi had also been lower after the Reserve Bank of New Zealand signaled interest rates will stay at a record low of 2.50% until the second half of 2010.

Published on  Fri, Oct 30 2009, 05:40 GMT