Detrimental To The Japanese Currency

USD Weekly Outlook Based On Fundamental Themes The beginning of a new month is always an important one for us from a fundamental perspective. This week we get a look at manufacturing, services, and labor market readings for the month of September - three key releases for us to gauge the current state of the economy. These reports will set a tone for October, especially as we try to see the impact of recent financial market turmoil on the real economy. Let's go ahead and review these key releases for the US this week. Monday - ISM Manufacturing Index we start with Monday's data where we get ISM manufacturing index. This index is a broad measure of state of the manufacturing sector an entire country, and a reading above 50 signifies expansion of reading below 50 signifies contraction. ...

Previous session overview The dollar edged up against its major counterparts in Asia Friday as investors speculated that a key monthly U.S. jobs report later in the global day will come in strong, after separate employment data Thursday showed the labor market firming more than expected. At 0450 GMT, the dollar was up at JPY81.27 from JPY81.24 late Thursday in New York. The common currency was at USD1.4338 at 0450 GMT, down from USD1.4359. The ICE Dollar Index, which measures the greenback against a basket of currencies including the euro and yen, was up at 75.003 at 0450 GMT from 74.913 late Thursday in New York. Risk-sensitive Asian currencies gained after the European Central Bank President Jean-Claude Trichet said Thursday, after the central bank raised interest rates, that it ...

With today's Non-Farm Payroll (NFP) figure on the way, traders appear to have lost tremendous optimism about the stability of their portfolios and have temporarily shifted to safety. The US economy has so far benefited from this shift as a stronger dollar should give Americans more buying power in the days ahead. Economic News USD - US Dollar Mildly Bullish ahead of NFP Report The US dollar (USD) experienced mildly bullish results yesterday as traders began to shift away from the euro (EUR) following the downgrade of Greece by Moody's Investor Services. The move was followed by a downturn in risk appetite which has so far fueled growth in safe havens like the USD, Swiss franc (CHF) and Japanese yen (JPY). With today's Non-Farm Payroll (NFP) figure on the way, traders appear to have ...

With the United States economy coming back online following yesterday's holiday break, the US government is scheduled to release a few minor data sets. The most impactful figure being published will be the Conference Board's (CB) consumer confidence report, set to be released at 15:00 GMT. The data should be a rock-steady gauge from which to view the impending employment reports coming out Wednesday and Friday. Economic News USD - Investors Seeking High Yields Run from US Dollar The EUR/USD rose to a three-week high Monday, reaching towards 1.4375 before settling slightly lower. The GBP/USD witnessed a similar upward jump, climbing to a four-week high of 1.6553. The shift into riskier assets supports a variety of analyses which have called for a solid return to growth in the early ...

With the United States on holiday Monday, currency traders are likely to witness a relatively thin trading environment. Though debt concerns loom in the euro zone, and industrial production falters globally, the higher yielding assets like the GBP and EUR appear positioned to gain despite poor fundamentals. This trend appears to have little opposition as dollar traders shift substantial value into other assets. Economic News USD - Dollar Traders Weighing Momentum at Start of NFP Week The US dollar has continued to plummet since Friday as dollar bears continued to move out of the greenback in exchange for higher yielding currencies. The Fed's record low interest rates will likely persist for the foreseeable future, according to recent FOMC reports, and the dollar is expected to see ...

As most investors eye Wednesday's monetary policy meeting by the US Federal Reserve, the possibility exists for the Fed to view the latest string of economic reports, particularly from the housing market, as a signal to release a hawkish assessment of the American economy. Consumer confidence has also risen lately and traders appear to be anticipating an uptick by the greenback against its Atlantic rival this week. Economic News USD - USD Hesitant Prior to Week's Fed Meeting The US dollar has found itself in a position to rebound strongly in the days ahead if this week's policy meeting by the Federal Reserve produces a hawkish assessment. Most reports released at the end of last week had begun to call for a fast-paced injection of trading volume, deemed almost certainly to go towards ...

€ The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3315 level and was supported around the $1.3215 level. Technically, today’s intraday high was just above the 61.8% retracement of the $1.2650 – 1.4280 range. Traders continue to lift the common currency higher at year-end as commodities prices escalate at the expense of the U.S. dollar. European Central Bank member Nowotny warned it is possible “that there will be further challenges for individual countries in the euro area” and added a “more efficient Stability and Growth Pact” is a needed reform. Improving U.S. and global economic data are increasing the demand for higher-yielding assets and decreasing demand for U.S. dollars. At the same time, safe haven assets like the ...

€ The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3155 level and was supported around the $1.3085 level. Technically, the pair continues to orbit the 38.2% retracement of the $1.5140 – 1.1880 range. Some dealers note they are confused by the signals the market is providing. On one hand, riskier assets like gold and crude oil are advancing higher, an indication the risk trade may be back on. On the other hand, the Swiss franc and Japanese yen – two traditional safe haven currencies – have been bid higher in recent trading sessions and given their relatively low yields, traders are not chasing them for positive interest rate differentials. The immense uncertainty surrounding eurozone sovereign credit concerns remains a net drag ...

€ The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3275 level and was supported around the $1.3160 level. Technically, today’s intraday high was right around the 61.8% retracement of the $1.2650 – 1.4280 range. The dollar was weak across the board including the majors and the Antipodean dollar bloc. Data released in the U.S. today saw the October CaseShiller home price index decline more than expected at -0.99% m/m and -0.80% y/y. These data evidence a U.S. housing market that likely began the fourth quarter on a weak note despite strong indications the Federal Reserve would be easing monetary policy drastically. Other data released to be released today include December consumer confidence and the December Richmond Fed ...