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Market Review - 09/06/2009 21:44 All times in GMT
Dollar falls broadly on questions over U.S. interest rate view
Dollar declined against a basket of currencies on Tuesday as investors reassessed whether the current economic recovery was enough to support the talk that the U.S. Federal Reserve could raise its target lending rates by the end of this year. In addition, U.S. Treasury Secretary Timothy Geithner said in a congressional testimony that ten of the country’s largest banks could repay a total of $68 billion of taxpayer money pumped into them by the TARP program to get through the credit crisis. The ICE dollar index fell 0.99%.
The British pound weakened to as low as 1.5985 against the greenback partly due to cross selling versus yen in Asian session (gbp/yen hit intra-day low of 156.61), cable was able to rise later in the day on the back of the earlier news that British Prime Minister Gordon Brown had won the support of most Labour members by promising to make unspecified changes to his leadership, admitting mistakes and taking responsibility for a week of political turmoil, as well as data which showed signs that house prices stabilised last month.
Euro briefly dipped to intra-day low of 1.3853 in Asian session partly due to the news that U.S. government desired European banks to undergo stress tests to ensure their survival in the event the economy worsens. However, European officials were skeptical on the idea and euro rebounded from there. The single currency dropped against the dollar after the release of weaker-than-expected German industrial production data (-1.9% versus forecast of 0.3%). Buying interest on euro emerged on dips and lifted the price to as high as 1.4102 in New York afternoon trade, supported by the rise in crude oil futures (which ended up $1.92 or 2.82% at $70.01/barrel) and the statement made by U.S. Treasury Secretary Tim Geithner.
Dollar also dropped against the Japanese yen to as low as 97.25 in late U.S. trade as investors pared bets for the Fed to raise interest rates by the end of 2009.
Data to be released on Wednesday include Japan CGPI, machine orders, Australia Westpac consumer confidence, German CPI and HICP, U.K trade balance, industrial and manufacturing production, Canada trade balance, new housing price index, U.S trade balance and Fed budget.
Dollar falls broadly on questions over U.S. interest rate view
Dollar declined against a basket of currencies on Tuesday as investors reassessed whether the current economic recovery was enough to support the talk that the U.S. Federal Reserve could raise its target lending rates by the end of this year. In addition, U.S. Treasury Secretary Timothy Geithner said in a congressional testimony that ten of the country’s largest banks could repay a total of $68 billion of taxpayer money pumped into them by the TARP program to get through the credit crisis. The ICE dollar index fell 0.99%.
The British pound weakened to as low as 1.5985 against the greenback partly due to cross selling versus yen in Asian session (gbp/yen hit intra-day low of 156.61), cable was able to rise later in the day on the back of the earlier news that British Prime Minister Gordon Brown had won the support of most Labour members by promising to make unspecified changes to his leadership, admitting mistakes and taking responsibility for a week of political turmoil, as well as data which showed signs that house prices stabilised last month.
Euro briefly dipped to intra-day low of 1.3853 in Asian session partly due to the news that U.S. government desired European banks to undergo stress tests to ensure their survival in the event the economy worsens. However, European officials were skeptical on the idea and euro rebounded from there. The single currency dropped against the dollar after the release of weaker-than-expected German industrial production data (-1.9% versus forecast of 0.3%). Buying interest on euro emerged on dips and lifted the price to as high as 1.4102 in New York afternoon trade, supported by the rise in crude oil futures (which ended up $1.92 or 2.82% at $70.01/barrel) and the statement made by U.S. Treasury Secretary Tim Geithner.
Dollar also dropped against the Japanese yen to as low as 97.25 in late U.S. trade as investors pared bets for the Fed to raise interest rates by the end of 2009.
Data to be released on Wednesday include Japan CGPI, machine orders, Australia Westpac consumer confidence, German CPI and HICP, U.K trade balance, industrial and manufacturing production, Canada trade balance, new housing price index, U.S trade balance and Fed budget.
