AceTrader 1-wk TRIAL
www.AceTraderFX.com 24-Hr Real-time Signals Consistent Performance Intra-day, Daily, Weekly. with Email Alerts Function Try 1-week for $25 USD
-------------------------------------------------------------
Governor of People's Bank of China, Zhou Xiaochuan said in Frankfurt that China may diversify its assets to a broader range of different currencies and invest in emerging markets. China is currently holding over 70 percent of its world’s biggest foreign-exchange reserves (more than US$1 trillion) in U.S. assets. Although Zhou said ‘no’ when he was asked whether China is selling U.S. dollar, if the proportion of U.S. assets is cut, this will definitely hurt the greenback.
Traders continued to sell dollar across the board in Asian & European sessions, with the single currency and sterling surging to 1.2901 and 1.9180 respectively before easing in NY market. Against the Japanese yen, the greenback also declined from Thursday’s 118.60 high to 117.18 before recovering.
Anticipation of a future increase in interest rates in the eurozone, U.K. and Japan put pressure on the greenback on Friday as comments from officials of different central banks reinforced the view that the European Central Bank, Bank of England and Bank of Japan will hike rates in December at the earliest. BOJ’s Fukui also expressed his concern of a sharp unwinding in carry trades, which may occur should Japan hike rates prematurely.
On the data front, focus for the upcoming week will be the release of U.S. retail sales and consumer price index together with capital inflow data on Tuesday and Thursday respectively. -------------------------------------------------------------
Updating time : 10/11/2006 22:44 GMT
Dollar extends weakness on concerns China may diversify reserves
Governor of People's Bank of China, Zhou Xiaochuan said in Frankfurt that China may diversify its assets to a broader range of different currencies and invest in emerging markets. China is currently holding over 70 percent of its world’s biggest foreign-exchange reserves (more than US$1 trillion) in U.S. assets. Although Zhou said ‘no’ when he was asked whether China is selling U.S. dollar, if the proportion of U.S. assets is cut, this will definitely hurt the greenback.
Traders continued to sell dollar across the board in Asian & European sessions, with the single currency and sterling surging to 1.2901 and 1.9180 respectively before easing in NY market. Against the Japanese yen, the greenback also declined from Thursday’s 118.60 high to 117.18 before recovering.
Anticipation of a future increase in interest rates in the eurozone, U.K. and Japan put pressure on the greenback on Friday as comments from officials of different central banks reinforced the view that the European Central Bank, Bank of England and Bank of Japan will hike rates in December at the earliest. BOJ’s Fukui also expressed his concern of a sharp unwinding in carry trades, which may occur should Japan hike rates prematurely.
On the data front, focus for the upcoming week will be the release of U.S. retail sales and consumer price index together with capital inflow data on Tuesday and Thursday respectively. -------------------------------------------------------------
