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Dollar rises against the Euro and the sterling as oil falls
Tue, Sep 2 2008, 10:31 GMT
by Benny Menashe
| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.4725 | 109.7 | 1.8175 | 1.12 | |
| Resistance | 1.4665 | 108.95 | 1.8155 | 1.112 |
| 1.462 | 108.55 | 1.7985 | 1.1105 | |
| 1.446 | 107.6 | 1.785 | 1.1025 | |
| Support | 1.4445 | 107.3 | 1.783 | 1.095 |
| 1.4415 | 106.55 | 1.7795 | 1.0885 |
The dollar rose to its highest level since February against the euro on speculation oil prices near a four-month low will support economic growth in the U.S., the world's largest energy consumer. The U.S. currency advanced to its strongest level in more than two years versus the British pound as Hurricane Gustav weakened ``The decline in oil and weak economic activity in Europe are contributing to the dollar's rise,'' said Satoru Ogasawara, foreign-exchange analyst and economist in Tokyo at Credit Suisse Group, the second-largest Swiss bank. ``Should oil continue to fall, it would mean lower energy costs for U.S. manufacturers and increased purchasing power for U.S. consumers.'' The EUR/USD is currently trading at $1.4500 as of 7:55am, GMT.
The British pound weakened for a sixth day, dropping to the lowest level since April 2006 against the dollar, before Prime Minister Gordon Brown announces a plan to reverse a slump in property values. ``The fear is that the economic downturn has gained momentum,'' Hans-Guenter Redeker, the London-based global head of currency strategy at BNP Paribas SA, France's biggest bank, wrote in a research note yesterday. ``The burden of adjustment is currently falling on sterling.'' The GBP/USD is currently trading at $1.7857 as of 8:22am, GMT.
The Australian dollar fell to its lowest level in almost a year after the Reserve Bank of Australia cut interest rates for the first time since 2001.
Australia's dollar is the second-worst performer among the 16 major currencies in the past month. The RBA cut its benchmark interest rates by a quarter-percentage point to 7 percent today. ``Investors are risk averse, given worries over a global downturn and the slump in equities,'' said Lee Wai Tuck, a currency strategist at Forecast Pte Ltd. in Singapore. ``The RBA has cut rates. The Australian and New Zealand dollars would be under downward pressure in such an environment.'' The AUD/USD is currently trading at 0.8340 as of 8:28am, GMT.
Today's Economic Events
| Time | Event | Currency | Period | Previous | Forecast | Significance |
| 14:00 | ISM Manufacturing Prices | USD | Aug | 50 | 4 | |
| 14:00 | Construction Spending m/m | USD | Aug | -0.4 | 2 | |
| 14:00 | ISM Manufacturing Prices | USD | Aug | 88.5 | 1 | |
| 9:00 | PPI m/m | EUR | Sep | 0.90% | 1 | |
| 8:30 | Construction PMI | GBP | Aug | 36.7 | 2 | |
| 6:30 | BOJ Governor Shirakawa Speaks | JPY | Sep | 2 | ||
| 5:45 | CPI m/m | CHF | Aug | -0.40% | 4 | |
| 4:30 | Cash Rate | AUD | Aug | 7.25% | 3 | |
| 4:30 | RBA Governor Stevens Speaks | AUD | Sep | 4 | ||
| 1:30 | Building Approvals m/m | AUD | Aug | -0.70% | 3 | |
| 1:30 | Retail Sales m/m | AUD | Aug | -1.00% | 3 | |
| 1:30 | Retail Sales m/m | AUD | Aug | -1.00% | 3 |
Published on Tue, Sep 2 2008, 10:44 GMT
Archive
- The Sterling tumbles as traders bet on a rate cut to 2%
Published On Tue, Dec 2 2008, 10:35 GMT - Expectations for Rate Cuts Support The Yen
Published On Mon, Dec 1 2008, 11:54 GMT - The Yen Hold Firm against the Dollar
Published On Fri, Nov 28 2008, 10:36 GMT - The Dollar is Pressured by the Rise in Equities
Published On Thu, Nov 27 2008, 11:02 GMT - Market remains skeptical despite new steps, dollar stable
Published On Wed, Nov 26 2008, 10:52 GMT
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