Friday, 2022-09-30, 2:33 PM
Welcome Guest | RSS
Site menu
Catalog categories
Brokers [2]
Software [14]
Forex for Beginners [86]
Trading Strategy [55]
Trading Systems [10]
Forex Psychology [15]
Forex Signals [11]
Currency trading [50]
Forecast [39]
Funny Forex [2]
Technical Analysis [84]
Other [5]
Forex Technical and Fundamental Forecasts for October 2009 [7]
Forex Technical and Fundamental Forecasts for November 2009 [2]
Scandi daily [20]
Main » Articles » Currency trading

CURRENCIES: Dollar Retreats As Market Sentiment Improves
By William L. Watts

The U.S. dollar lost ground versus major rivals, with safe-haven flows drying up as equity markets turned higher and economic sentiment lost some of its recent gloom, strategists said.

The dollar managed to post a gain versus the yen, however, as the Japanese currency also lost some of its haven-related appeal.

"Some positive numbers from China and news that the IMF has revised higher its 2010 forecast provided some support and a reason for profit-taking, particularly on the yen, which has dropped back from a 4-month high," wrote strategists at Brown Brothers Harriman.

New vehicle sales in China jumped 36.5% in June from a year earlier, marking the fourth straight month that vehicle sales have topped 1.1 million units, according to the state-run Xinhua News agency Thursday.

The IMF on Wednesday raised its forecast for 2010 growth to a 2.5% rate, compared with its forecast for a 1.9% rate in April.

U.S. equities stabilized Wednesday. Asian indexes posted a mixed finish Thursday, while European markets were holding modest gains and U.S. stock index futures pointed to a higher opening for Wall Street.

The dollar index (DXY), a measure of the greenback against a trade-weighted basket of six major currencies, slipped to 80.236, down from 80.643 in North American trade late Wednesday.

The euro fetched $1.3977 versus the dollar, up from $1.3882 Wednesday, and the British pound bought $1.6206, up from $1.6061.

The Australian dollar bought 78.50 U.S. cents, up from 77.76 U.S. cents late Wednesday.

"After six consecutive days of equity losses, markets are set for consolidation, but the anticipated consolidation should be used" to sell into strength, wrote equity strategists at BNP Paribas, in a research note.

They expect any euro rally to be capped in the $1.40 area as policy makers in the euro zone become more aware of the risks of a significant credit crunch developing in coming months.

The dollar bought 93.13 yen, up from 92.67 yen in late North American trading on Wednesday, when it hit an intraday low of 91.81 yen -- its lowest point in more than four months.

"The huge outperformance of the Japanese yen since the beginning of the month is a clear and screaming sign of recent building risk aversion," Patrick Bennett, a Hong Kong-based currency strategist at Societe Generale SA, wrote in emailed comments.

Leaders of the Group of Eight nations and the Group of Five emerging economies agreed Thursday to refrain from competitive devaluations of their currencies, Reuters reported, citing an unidentified German source.

Leaders and representatives of the G5 nations, which include China and India, are meeting with G8 leaders at the G8 summit in L'Aquila, Italy. The G8 includes the United States, Japan, Germany, France, Italy, Great Britain, Canada and Russia.

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day.
Category: Currency trading | Added by: forex-market (2009-07-09)
Views: 340
Total comments: 0
Only registered users can add comments.
[ Registration | Login ]
Custom Search
Login form
Site friends
Copyright MyCorp © 2022