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Posts Tagged ‘forex exchange market’
USD on a Downward Trend vs. Major Currencies
The US dollar continues to slip versus major currencies, but this time, not as a result of optimism in global recovery but the weaker than expected industrial production in the US. The industrial production data fell to 0.2% in August vs. the 0.3% forecast. Industrial production also performed poorly compared to July’s 0.6%. A series of falls also influenced the weaker US dollar with the decline of the Empire State Manufacturing Index from 8.7 forecast to 4.1. As for the stock markets, both Dow Jones and NASDAQ were able to gain by 0.44% and 0.50% respectively. After losing by 1.0%, crude oil ended up at $76 per barrel. Gold also fell by 0.2% to close at $1,268.70 per ounce.
The euro managed to pull a near one-month high versus the dollar, following speculations that more Treasury securities will be bought by Fed Reserve this year to support growth. At the end of the September 16 forex trading day, the EUR/USD pair traded between 1.2955 and 1.3037. Also gaining against the dollar, the British pound reached its 4-week high, with the GBP/USD pair closing at a low 1.5448 and a high of 1.5652
Optimism Continues to Abound in the Forex Market
The forex trading market has been quite rocky over the past year with global recession causing extra volatility in currency values. For the second day in a row, on September 15th, the forex market has been influenced by some positive news about global economic recovery. The result is that investors have been moving away from safe currencies and going for riskier, higher-yielding currencies.
The dollar fell against most of the majors, even though both Core Retail Sales and Retail Sales data came out positive. In Europe, German ZEW Economic Sentiment and Industrial Production came out worse than expected, but the euro flew to a 5-week high, with the EUR/USD pair trading at a high of 1.3032 and a low of 1.2828. The pound also recorded gains against the dollar, while both Core CPI and CPI came out better than expected. The GBP/USD pair traded at a high of 1.5585 and a low of 1.5347. The yen also gained against the dollar with the USD/JPY pair trading at a high of 84.57 and a low of 82.86.
Risk Appetite Fuels Gains vs. the Dollar
Positive economic data from numerous regions around the world has fueled confidence in global recovery. Investors are reacting by shifting their forex trading efforts toward higher-yielding currencies, causing the dollar to lose out against many of the majors. Both Dow Jones and NASDAQ gained, crude oil also strengthened to close at $77.20 per barrel, and gold closed at about $1,245.30 per ounce.
In the UK, Nationwide Consumer Confidence data came out better than expected, while the RICS House Price Balance came out worse than expected. The GBP/USD pair traded at a low of 1.5344 and a high
of 1.5486.
The euro made gains against the dollar as well, with the EUR/USD pair trading at a low of 1.2677 and a high of 1.2891. The euro was bolstered by positive data on Chinese industrial production and
retail sales, which show that global recovery may be on the rise. As for the Japanese yen, it also posted gains versus the dollar, with the USD/JPY trading at a high of 84.41 and a low of 83.23.
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