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Market Review - 31/12/2008 23:55 GMT
U.S. currency rises versus yen and euro on Wednesday on the last trading day of 2008
The single currency tumbled from 1.4148 to 1.3851 against the U.S. currency on Wednesday while the greenback rose from 90.14 to 90.94 and from 1.0542 to 1.0745 versus the Japanese yen and Swiss franc respectively. The British pound fell sharply from 1.4700 to 1.4350 before rebounding to close at 1.4620 in the thin and volatile final trading day of 2008.
The U.S. currency posted its yearly gains against a basket of currencies in 2008 on speculation the Federal Reserve’s zero interest rate policy will undermine demand for the greenback. U.S. investors brought cash home and overseas investors parked money in dollar-denominated assets such as U.S. Treasuries.
The Japanese yen rallied the most against the U.S. currency in more than two decades in 2008 as the worst financial crisis in 80 years spurred a massive unwinding of carry trades. The single currency recorded its biggest rally against the sterling since the 15-nation currency’s debut in 1999. Euro rose to a fresh record high of 0.9805 on Tuesday on speculation the recession in the U.K. will deepen, however, eur/gbp retreated sharply on profit-taking to 0.9478 on Wednesday.
U.S. stocks edged up on Wednesday and saw their first monthly gain in five months as investors bought equities on the confirmation by the Federal Reserve on Tuesday that it would try to lower home mortgage rates further by buying mortgage bonds in 2009. However, 2008 has been the worst for Wall Street stocks since the Great Depression.
On the data front, the weekly U.S. jobless claims came in at 492,000, smaller than the expectation of 565,000, however, it remained at its highest level since 1982.
All financial markets are closed on Thursday. Friday will see the release of U.K. Nationwide house price, German, eurozone and U.K. PMI manufacturing respectively and U.S. ISM manufacturing data.
U.S. currency rises versus yen and euro on Wednesday on the last trading day of 2008
The single currency tumbled from 1.4148 to 1.3851 against the U.S. currency on Wednesday while the greenback rose from 90.14 to 90.94 and from 1.0542 to 1.0745 versus the Japanese yen and Swiss franc respectively. The British pound fell sharply from 1.4700 to 1.4350 before rebounding to close at 1.4620 in the thin and volatile final trading day of 2008.
The U.S. currency posted its yearly gains against a basket of currencies in 2008 on speculation the Federal Reserve’s zero interest rate policy will undermine demand for the greenback. U.S. investors brought cash home and overseas investors parked money in dollar-denominated assets such as U.S. Treasuries.
The Japanese yen rallied the most against the U.S. currency in more than two decades in 2008 as the worst financial crisis in 80 years spurred a massive unwinding of carry trades. The single currency recorded its biggest rally against the sterling since the 15-nation currency’s debut in 1999. Euro rose to a fresh record high of 0.9805 on Tuesday on speculation the recession in the U.K. will deepen, however, eur/gbp retreated sharply on profit-taking to 0.9478 on Wednesday.
U.S. stocks edged up on Wednesday and saw their first monthly gain in five months as investors bought equities on the confirmation by the Federal Reserve on Tuesday that it would try to lower home mortgage rates further by buying mortgage bonds in 2009. However, 2008 has been the worst for Wall Street stocks since the Great Depression.
On the data front, the weekly U.S. jobless claims came in at 492,000, smaller than the expectation of 565,000, however, it remained at its highest level since 1982.
All financial markets are closed on Thursday. Friday will see the release of U.K. Nationwide house price, German, eurozone and U.K. PMI manufacturing respectively and U.S. ISM manufacturing data.
