Optimism Returns To Markets

US dollar is moving lower right now, thanks to improved risk appetite. Most of that risk appetite is coming from enthusiasm over better data in the United States. Improvements to the US economy are helping high beta currencies, even after continued disappointment in Europe and China. Good news in the United States is providing a boost to high beta currencies, and sending the US dollar lower, as risk appetite returns to the markets. Jobless claims in the United States fell to 370,000 last week, dropping by 2,000. Additionally, there was a rise in US durable good orders of 0.2% for April. This good news is providing some relief from all of the bad news coming out of Europe. The sovereign debt crisis continues to dominate in the eurozone as European Union leaders look for a way for Greece ...

(Reuters) - Asian shares edged higher on Friday on firm U.S. data, but a two-notch downgrade of Spain's credit rating capped gains, while fresh easing measures by the Bank of Japan briefly pushed Tokyo stocks up over 1 percent and the dollar above 81 yen. European shares were likely to fall, with financial spreadbetters predicting that major European markets would open as much as down 0.5 percent. U.S. stock futures were down 0.5 percent. Japan's central bank moved as expected to help fight deep deflation, sparking a jump in the Nikkei stock average which helped temporarily drag the broader Asian stock higher. MSCI's broadest index of Asia-Pacific shares outside Japan last stood up 0.2 percent, set for a weekly drop of 0.1 percent. The technology sector and Korean shares outperformed, ...

(Reuters) - Gold prices fell on Monday, following losses in a number of other commodity markets, as worries about Spain's ability to repay its debt and a resurgent euro zone debt crisis dent investors' appetite across the board. Silver also fell as stockpiles in exchange warehouses hit record highs, showing plentiful near-term supplies of the industrial metal as the global economic recovery struggles for traction. Bullion was on track for a second day of loss as Spanish 10-year government bond yields broke through the 6 percent mark for the first time since December, overshadowing optimism generated by encouraging retails sales data. The metal has dropped about 8 percent from near $1,800 an ounce at the end of February as a strong run of positive economic data reduced market hopes about ...

Optimism dominated the market with the start of the European session today, supporting the European common currency and the sterling pound to recover most of the losses incurred yesterday; however, the royal currency reversed sharply to the downside after data showed that U.K.'s budget deficit almost doubled in February reaching 63.1% of the nation's GDP. The public finances surplus narrowed in a slower than expected pace in February, where the surplus narrowed to 7.8 billion pound from the revised previous of 32.0 billion, beating estimates of 1.0 surplus. But on the other hand, the government's net borrowing almost doubled to 15.2 billion, the highest record seen in February since ever, compared with a year earlier figure of 8.9 billion. The debt-to GDP ratio returns once again to ...

(Reuters) - Asian shares fell on Monday, as investors turned cautious about riding further on liquidity-driven optimism without seeing more evidence of firmer global growth and on concerns about the impact of a slowing Chinese economy. Market sentiment has been improving since late last year as major central banks around the world flooded the financial system with ample funds to stave off fears of a credit crunch, allowing money to flow into a broad range of assets. But while recent U.S. data suggesting a recovery has prompted investors to shift their focus towards economic fundamentals and away from long-running troubles in the euro zone, they remain watchful of developments in the debt crisis and also rising oil prices. "Markets seem to be in a holding pattern. Investors are waiting ...

Australian dollar has been trading choppily today, but right now the Down Under currency is making some progress as general risk appetite returns to the currency market. Right now, Forex traders are looking for yields as better economic data takes center stage. Aussie has overcome earlier losses to trade high against most major currencies. Yesterday, risk appetite was disappointed with Federal Reserve Chair Ben Bernanke‘s comments indicating that further quantitative easing isn’t in the immediate future. The news provided a bit of a damper for the Australian dollar earlier, but since then things have improved. Better economic data in Australia, including positive domestic capital expenditure data, is helping the Aussie. Also helping is a return to risk appetite on expectations of the US ...

(Reuters) - Gold prices slipped in Europe on Friday as the euro eased from a two-month high, coming under pressure as the optimism sparked by Greece's agreement of the austerity measures it needs in order to receive a second rescue package dissipated. Euro zone finance ministers are seeking further measures from Greece before signing off on a second bailout, keeping the threat of a chaotic default alive and pressuring risk appetite. Spot gold was down 0.8 percent at $1,716.49 an ounce at 5:25 a.m. ET, while U.S. gold futures for February delivery were down $21.30 an ounce at $1,719.90. "Gains in the U.S. dollar and consistent disappointment from the European Union regarding the Greece debt deal are curbing any gains in gold," said Pradeep Unni, senior analyst at Richcomm Global Services. ...

US dollar index is lower today, falling overall as a degree of optimism returns to the markets. Many expect a Greek debt deal to be done today, and that means that there has been some demand for high beta currencies in earlier trading. Now, though, the US dollar seems to be gaining some ground as some of that risk appetite fades and the Greek situation looks a little less certain. Greenback is rising as the euro and the UK pound pare earlier gains — and even move into negative territory. The European Central Bank announced that it might hold back on helping Greece until certain elements of the debt negotiation are in place. This news has prompted some to speculate that things aren’t going well and that the ECB may not be as prepared to help with the Greece bailout as everyone thought. ...

As this busy week comes to an end, the sentiment returns once again to advance in the market after the confirmed improvement in the performance of the European services sectors, which spread optimism in the market ahead of the critical jobs report from the world's largest economy. The purchasing managers' final indexes for services from the euro-area region, Germany and France confirmed the improvement in the services sectors in January, as we can see the French sector advanced to 52.3 from 50.3, while the German sector improved to 53.7 from 52.4, in the time the euro-area services sectors in general expanded to 50.4 from the previous contraction of 48.8. The confirmed improvement in the services sectors added positivity to the market on eased fears and jitters that the euro-area region ...