Risk Appetite Returns after Positive US Data

Thursday, November 26, 2009

The US Dollar continued its fall on Wednesday, after a spate of data releases increased optimism in the US for an economic recovery. Three key pieces of data were released in the last Forex trading session before the Thanksgiving holiday on Thursday and all three were better than expected.

On the jobs front the US shed less jobs in this reading than it has for over a year, this while retail sales jumps higher than anticipated and home prices increase for the fifth straight month.

Minutes were also released fro the Federal Reserves meeting in which it was revealed that the Fed as a whole saw the falling Dollar as an orderly occurrence.

All of these combined brought risk appetite back into the markets and pushed the Dollar to a sixteen month low on the ICE futures Dollar index, a non traded index which matches the performance of the Greenback to 6 major currencies.

At 10:25PM GMT, the US Dollar was trading down .91% to the Euro to 1.5088, down 1.21% against the Japanese Yen to 87.48, down .55% versus the British Pound to 1.6674, down .84% against the Canadian Dollar to 1.0489, down 1.15% to the Australian Dollar to .9293 and down .86% versus the Swiss Franc to .9998.

1 comments:

Ken March 17, 2010 at 5:11 PM  

thanks for articles ;)

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