Currency's Strength Has Come

The US dollar reversed some of its recent gains to close out the week on Friday, following the release of a disappointing US Core CPI figure. The figure, which came in at 0.1%, led to investor doubts that US interest rates would go up earlier than planned. As a result, the EUR/USD shot up well over 100 pips on Friday to close out the week at 1.3174. Turning to next week, a relative lack of news events means that the dollar could remain bearish for the near future. Still, US housing data, scheduled to be released on Wednesday and Friday, may give the greenback an opportunity to recoup its recent losses. Economic News USD - USD Takes Losses vs. Main Rivals to Close out Week Worse than expected fundamental indicators out of the US led to significant dollar losses to close out last week's ...

Investor optimism that Greece would successfully execute an important debt-swap, boosted riskier assets throughout yesterday's trading session. As a result, the EUR/USD shot up over 100 pips during the European session, reaching as high as 1.3272. Today, the US Non-Farm Payrolls figure is forecasted to generate significant market volatility. Assuming the indicator comes in as expected, risk taking may increase, which could help the euro extend yesterday's gains. Economic News USD - US Employment Data May Lead to Dollar Gains The US dollar took some losses against its riskier currency rivals yesterday, after positive euro-zone developments caused investors to move away from safe-haven assets. Against the euro, the USD tumbled well over 100 pips, while the AUD/USD jumped as high as 1. ...

(Reuters) - Be careful what you wish for, Japan. Long preoccupied with the strength of the yen and its drag on the anemic economy, policymakers in Tokyo are now being served a warning about the risks posed by the currency's retreat. The yen's decline from record highs in recent months coincides with a major shift in the country's energy balance, a change that threatens to hasten its path to a perennial trade deficit. A record current account deficit in January reported on Thursday was probably a blip, a result of seasonal and one-off factors. But it serves as a reminder that the former export powerhouse may end up in the red and will need to import capital to fund its snowballing debt much sooner than earlier thought. The fear is that foreign investors would demand better returns, ...

The euro took further losses against its main currency rivals in trading yesterday, as pessimism in the euro-zone economic recovery caused investors to revert their funds back to the US dollar. The EUR/USD fell as low as 1.3281, while against the GBP, the common currency dropped close to 50 pips. Turning to today, traders will want to continue monitoring any announcements out of the euro-zone for clues regarding risk appetite in the marketplace. Negative news could continue to weigh down on the euro. Economic News USD - USD Extends Bullish Trend amid Positive US News The US dollar largely maintained its bullish trend throughout yesterday's trading session, as signs of an improving US economy sent investors to the greenback. A positive US Unemployment Claims figure, along with recent ...

The euro saw a relatively bullish day yesterday, following the announcement that Greece approved a fresh set of austerity measures needed to receive a sorely needed bailout package. That being said, the common currency's bullish trend stalled during mid-day trading, after doubts on whether Greece would be able to avoid defaulting on its debt surfaced. Today, traders will want to pay attention to a batch of euro-zone and US data. Specifically, the German ZEW Economic Sentiment and US Retail Sales figures are expected to generate market volatility. Economic News USD - US Retail Sales May Boost Dollar The US dollar saw some downward movement to start off the week, after news that Greece's parliament approved austerity measures it needs in order to qualify for a euro-zone bailout package. ...

The dollar gained against the yen and euro on Friday, sending both to session lows after a report showed a larger-than-expected gain in U.S. jobs, which investors perceived as reducing the likelihood of further stimulus by the Federal Reserve anytime soon. To some investors it even suggested the U.S. central bank may raise interest rates sooner than it has indicated in recent days. Higher rates will raise the attractiveness of dollar-denominated securities and demand for the dollars to buy them. The report showed a rise of 243,000 jobs in U.S. nonfarm payrolls in January, while the unemployment rate unexpectedly fell to 8.3 percent from 8.5 percent . Analysts were forecasting a gain of 150,000 jobs in January and the unemployment rate to hold steady, according to a Reuters poll. A ...

The euro rose against the dollar on Wednesday on the latest hopes that a Greek debt deal was near, while the greenback bounced from a three-month low versus the yen as investors remained keenly aware of potential central bank intervention. The euro pared gains in the afternoon as the mood softened on the likelihood of an imminent a Greek deal. In addition, risk sentiment eroded with equities coming off their highs, and investors retreated to a safe haven, said Brian Kim, currency strategist at Royal Bank of Scotland in Stamford, Connecticut. Earlier, Greek Finance Minister Evangelos Venizelos said talks with private creditors on a bond swap deal that is key to the country avoiding an unruly default were "one formal step away." Investors have been on tenterhooks for weeks awaiting a ...

The euro staged a small but significant upward correction during European trading yesterday, following an agreement among euro-zone leaders to set up a permanent bailout fund. The news briefly lifted the EUR/USD above the 1.3200 level, but the pair was not able to sustain its bullish momentum and began falling shortly after. Today, traders can expect heavy volatility in the marketplace ahead of the US ADP Non-Farm Employment Change at 13:15 GMT. A better than expected figure could help the USD in afternoon trading. Economic News USD - USD Takes Losses amid Positive Euro-Zone News The US dollar slipped against its main currency rivals throughout the day yesterday, following positive euro-zone news that led to risk taking in the marketplace. The EUR/USD briefly drifted above the 1.3200 ...

The US dollar closed last week on a bearish note, as it took significant losses against most of its main currency rivals, including the euro and Japanese yen. The dollar began to decline during the middle of the week, following an announcement from the Fed saying that record low US interest rates would likely remain for the next several years. A softer than expected US Advanced GDP figure on Friday only caused the currency to drop further. This week, all eyes will be on the US Non-Farm Payrolls figure. Should the figure come in below expectations, the dollar will likely extend its bearish trend. Economic News USD - USD Looks to Reverse Last Week's Losses Last week's announcement by the Fed that US interest rates would likely remain at their current, near-zero levels until 2014 sent the ...