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Market Review - 11/05/2009 21:07 GMT
Dollar rebounds as risk aversion increases on falling global stocks
The greenback rebounded against a basket of six other major currencies on Monday as investors booked profits on a rally in riskier assets last week while persistent economic worries boosted the U.S. dollar's safe-haven appeal. In late New York trading, the ICE future dollar index added 0.41 percent to trade at around 87.782, however, the greenback remained under pressure versus the yen due to weakness in global stock markets and dropped to session low of 97.26.
The single currency reversed from a one month high of 1.3670 against the dollar as risk appetite reduced and fell to as low as 1.3557 before stabilising, however, it strengthened versus the British pound and surged to an intra-day high of 0.9038 as last week's unexpected Bank of England decision to expand its quantitative easing program by 50 billion pounds continued to weigh on sterling.
High-yielding currencies such as the New Zealand dollar and Australian dollar fell against the greenback and yen as risk aversion returned to the market. The New Zealand dollar slipped from session high of 0.6127 and 60.34 to as low as 0.6012 and 58.46 versus the greeback and yen respectively, while aussie dropped from 0.7714 to 0.7582 and from 76.11 to 73.79 versus the yen.
The Dow Jones industrial average and the S&P's 500 index fell on Monday due to profit taking after a two-month run-up, while news of several share offerings weighed on banks as investors worried abort their dilutive impact on current shareholders. By the end of the day, the Dow Jones index dropped 155 points, or 1.82 percent, to 8463, while S&P 500 fell 19 points to 909.
Economic data releases on Tuesday include Japan leading indicators, U.K. BRC retail sales, RICS house prices, DCLG house prices, trade balance, industrial and manufacturing production, German CPI, HICP and WPI, Canada trade balance and Federal budget.
Dollar rebounds as risk aversion increases on falling global stocks
The greenback rebounded against a basket of six other major currencies on Monday as investors booked profits on a rally in riskier assets last week while persistent economic worries boosted the U.S. dollar's safe-haven appeal. In late New York trading, the ICE future dollar index added 0.41 percent to trade at around 87.782, however, the greenback remained under pressure versus the yen due to weakness in global stock markets and dropped to session low of 97.26.
The single currency reversed from a one month high of 1.3670 against the dollar as risk appetite reduced and fell to as low as 1.3557 before stabilising, however, it strengthened versus the British pound and surged to an intra-day high of 0.9038 as last week's unexpected Bank of England decision to expand its quantitative easing program by 50 billion pounds continued to weigh on sterling.
High-yielding currencies such as the New Zealand dollar and Australian dollar fell against the greenback and yen as risk aversion returned to the market. The New Zealand dollar slipped from session high of 0.6127 and 60.34 to as low as 0.6012 and 58.46 versus the greeback and yen respectively, while aussie dropped from 0.7714 to 0.7582 and from 76.11 to 73.79 versus the yen.
The Dow Jones industrial average and the S&P's 500 index fell on Monday due to profit taking after a two-month run-up, while news of several share offerings weighed on banks as investors worried abort their dilutive impact on current shareholders. By the end of the day, the Dow Jones index dropped 155 points, or 1.82 percent, to 8463, while S&P 500 fell 19 points to 909.
Economic data releases on Tuesday include Japan leading indicators, U.K. BRC retail sales, RICS house prices, DCLG house prices, trade balance, industrial and manufacturing production, German CPI, HICP and WPI, Canada trade balance and Federal budget.
