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The Canadian dollar trimmed gains after stocks and crude oil prices fell
Daily U.S. Forex Summary
Thu, Feb 4 2010, 06:31 GMT
strengthened against a batch of major currencies today, boosted by an increase in US ISM Non Manufacturing data, positive ADP Employment figures, and an increase in MBA Mortgage Applications. The upside news pushed the US dollar to significant gains against the yen, 0.7% to 90.95 from 90.27 yesterday. The strength of the greenback against the yen suggests that the dollar may begin to trade on economic growth sentiments rather than safe haven flows.
traded in a close range against the US dollar today as the European Commission endorsed Greek’s deficit-cutting plan, offsetting investor’s worries over existing fiscal problems. The euro benefited from the news overnight, opening strong in the New York session – rising past the 1.40 resistance level.
However, the euro has since reversed those gains as investors remain cautious of the riskier asset and suspect it to have been overbought during the opening session.
is trading softer ahead of the Bank of England (BOE) policy decision tomorrow, where policy makers are expected to announce a halt in its quantitative easing policy. Ongoing signs of weakness in the economy would prevent the BOE from raising rates anytime soon. The currency was also weighed down by sluggish UK service sector activity and uncertainty ahead of an election year.
However, losses were limited after Nationwide Building Society said an index of consumer sentiment increased 3 points in January to 73.
gave up yesterday’s gains and moved lower against the US dollar today after better-than-expected US employment data and the release of the ISM Non Manufacturing Index, which moved investors back into the dollar.
trimmed gains after stocks and crude oil prices fell. The market will eye this Friday’s Canadian and U.S. jobs data for further direction into the currency pair. Canada is expected to add 15,000 jobs in January.
recovered after it was beaten down yesterday when Australia’s central bank surprised the market and kept interest rates on hold at 3.75 percent. Uncertainty whether the risk appetite will continue hurt the Aussie amid renewed concerns about China’s plan to tighten bank lending ignited profit-taking in high yield currencies. Australia is China’s biggest trading partner. If China growth slows, it may curb demand for Australian exports.
New Zealand dollar.
The currency is also trading lower ahead of tomorrow’s unemployment data, which is expected to rise to 6.8 percent in the fourth quarter from 6.5 percent in the third quarter. The currency also weakened after Auckland-based Fonterra Cooperative Group Ltd., the world’s biggest dairy exporter, said milk powder prices fell for a second month.