Dollar still rallying, Euro dodges some bullets

Tuesday, December 8, 2009

USD

Monday saw the Dollar rise to levels not seen in more than five weeks against a basket of currencies, extending Friday’s rally that was sparked by a much better than expected jobs report.

The trading patterns indicate that there is much short covering of the Dollar, a theory floating through the market claims, as Forex online investors scramble to adjust their holdings after the good sign from the employment data.

Investors are now banking that the US will begin increasing its almost non-existent interest rates, helping to increase the Dollar’s value.

The ICE Futures Dollar Index was trading as high as 76.183, a five week high. The index tracks the USD’s performance against six of the major currencies in the Forex marketplace.

At 10:45PM GMT, the US Dollar was trading up .87% against the British Pound to 1.6329, up .61% versus the Australian Dollar to .9089, up .92% to the New Zealand Dollar to .7095 and up .58% against the Swiss Franc to 1.0223. The Dollar did decline on Monday, down .12% to the Canadian Dollar to 1.0565 and .75% versus the Japanese Yen to 89.92.

EUR

The Euro surprised investors on Monday by not showing any reaction to comments made by European Central Bank President, Jean-Claude Trichet, indicating that the Eurozone economy is continually showing signs of recovery.

German manufacturing orders also surprised investors as the indicator took an unexpected negative turn, however the Euro seemed unaffected – trading mixed to higher overall on the day.

At 11:00PM GMT, the Euro was trading down .5% to the US Dollar to 1.4786, down 1.09% against the Japanese Yen to 133.08, up .41% to the British Pound Sterling to .905, down .66% versus the Canadian Dollar to 1.5615, up .14% to the Australian Dollar to 1.6264 and up .12% to the Swiss Franc to 1.5117.

1 comments:

Anonymous December 15, 2009 at 7:24 PM  

Yes, euro is declining against the majors, after the worse than expected data. I read on Fx Insider (my news tool by broker ACM Forex)the report says that the European economic recovery will be slow, but the demand for investments is stabilizing. And the German Institute ZEW also said that the main European banks should clean their balance sheets in the short term… I didn’t trade during this announcement? Did someone?... I was in the platform thou and Bollinger bands didn’t show that much volatility…This tool that I use is provided right on the platform by my broker ACM http://www.ac-markets.com/forex-resources/currency-analysis.aspx but youll see me back here hehe

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