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
Market Review - 21/04/2009 20:52 GMT
Dollar and yen retreat on Tuesday as equities rise in Europe and U.S.
The dollar and yen fell on Monday as European and U.S. equity markets rebounded after U.S. Treasury secretary Timothy Geithner said American banks are well capitalized. In late New York session, the ICE future dollar index (which measures the U.S. dollar’s strength against a basket of six other currencies) traded lower to 86.511, dropping from a one-month high of 86.871 made last week, however, dollar strengthened versus the Japanese yen and rose to as high as 98.92.
The single currency rebounded from a one-month low after a report showed investors' confidence improved in April, the ZEW survey in Germany rose to 13.0 from –3.5 in March and was the first time it reached positive territory since July 2007. The euro climbed to as high as 1.2995 against the dollar and 128.13 versus the yen, however, it fell against the British pound and tumbled from 0.8915 to 0.8815.
Consumer prices in U.K. rose 2.9 percent from a year earlier, compared with 3.2 percent in February, while the retail price index fell for the first time since 1960, showed a 0.4 percent annual price drop in March. The inflation data suggested that the economy had not yet fallen into deflation and sterling rallied broadly, rising to session highs of 1.4708 and 145.16 against the dollar and yen respectively.
Meanwhile, the Canadian dollar tumbled to a three-week low against the dollar after the nation’s central bank cut its benchmark interest rate to a record-low 0.25 percent and said it may remain there for a year. The usd/cad surged to as high as 1.2507 before stabilising before retreating to around 1.2360 in late New York session.
On Wednesday, economic data releases include Japan trade balance, Australia CPI, U.K. BOE vote outcome, claimant count, average earnings, ILO unemployment and PSNCR, Canada leading indicators, and U.S. home price index.
Dollar and yen retreat on Tuesday as equities rise in Europe and U.S.
The dollar and yen fell on Monday as European and U.S. equity markets rebounded after U.S. Treasury secretary Timothy Geithner said American banks are well capitalized. In late New York session, the ICE future dollar index (which measures the U.S. dollar’s strength against a basket of six other currencies) traded lower to 86.511, dropping from a one-month high of 86.871 made last week, however, dollar strengthened versus the Japanese yen and rose to as high as 98.92.
The single currency rebounded from a one-month low after a report showed investors' confidence improved in April, the ZEW survey in Germany rose to 13.0 from –3.5 in March and was the first time it reached positive territory since July 2007. The euro climbed to as high as 1.2995 against the dollar and 128.13 versus the yen, however, it fell against the British pound and tumbled from 0.8915 to 0.8815.
Consumer prices in U.K. rose 2.9 percent from a year earlier, compared with 3.2 percent in February, while the retail price index fell for the first time since 1960, showed a 0.4 percent annual price drop in March. The inflation data suggested that the economy had not yet fallen into deflation and sterling rallied broadly, rising to session highs of 1.4708 and 145.16 against the dollar and yen respectively.
Meanwhile, the Canadian dollar tumbled to a three-week low against the dollar after the nation’s central bank cut its benchmark interest rate to a record-low 0.25 percent and said it may remain there for a year. The usd/cad surged to as high as 1.2507 before stabilising before retreating to around 1.2360 in late New York session.
On Wednesday, economic data releases include Japan trade balance, Australia CPI, U.K. BOE vote outcome, claimant count, average earnings, ILO unemployment and PSNCR, Canada leading indicators, and U.S. home price index.
