Dynamics U.S. dollar on Wednesday, January 20 haggled with the increase across the spectrum of the currency market FOREX. When the pair EUR /USD closed at around 1.4103, the pair GBP /USD fell to 1.6287, and the pair USD /CHF closed around 1.0441. Japanese yen showed multidirectional movements against other currencies. When the pair USD /JPY closed at around 91.20, and the pair EUR /JPY stood at 128.65. Commodity currency closed weaker against the U.S. dollar. Thus, the pair AUD /USD stood at 0.9082, the pair NZD /USD closed around 0.7196 marks, and the pair USD /CAD at 1.0468.
Causes On Wednesday 20 January the U.S. dollar and Japanese yen rose against major currencies against the backdrop of the fall of shares on stock markets because of weak corporate reports and measures to restrict China”s banking liquidity. This reduced investor demand for high-risk assets. The euro fell to 5-month low against the U.S. dollar. In relation to sterling, Eurocurrency falls 7 th consecutive day after the IMF Managing Director Dominique Strauss-Kahn said that the budget problems Greece fairly serious. The Canadian dollar showed its maximum drop in nearly 3 months after the report on consumer inflation has not justified forecasts of analysts (consumer price index in December rose 1.3% y /y, which is below the average analysts” forecast of 1.6%).
What to expect? We need to understand whether the U.S. dollar to trade in line with the previous strategy, when the signs of improvement ineb3the economy, investors are shifting money from dollars into higher-yielding currencies, or whether it will strengthen against the backdrop of favorable economic news and expectations of more U.S. imminent rise in interest rates. It is likely that busy week of events will shed light on this situation. Today is scheduled to yield a number of important indicators. In particular, the euro area expected to publish the monthly bulletin of the ECB. In the UK there are data on the pure volume of public sector borrowing. In the U.S. there are data on initial applications for unemployment benefits, an index of business activity FRB of Philadelphia, the reserves of oil and petroleum products according to the U.S. Department of Energy.
Why worry? In the absence of consensus on the direction of further tenders for the U.S. dollar is very likely to volatile changes in his situation.
Review of the FOREX market for 20.01.10
Dynamics
U.S. dollar on Wednesday, January 20 haggled with the increase across the spectrum of the currency market FOREX. When the pair EUR /USD closed at around 1.4103, the pair GBP /USD fell to 1.6287, and the pair USD /CHF closed around 1.0441. Japanese yen showed multidirectional movements against other currencies. When the pair USD /JPY closed at around 91.20, and the pair EUR /JPY stood at 128.65. Commodity currency closed weaker against the U.S. dollar. Thus, the pair AUD /USD stood at 0.9082, the pair NZD /USD closed around 0.7196 marks, and the pair USD /CAD at 1.0468.
Causes
On Wednesday 20 January the U.S. dollar and Japanese yen rose against major currencies against the backdrop of the fall of shares on stock markets because of weak corporate reports and measures to restrict China”s banking liquidity. This reduced investor demand for high-risk assets. The euro fell to 5-month low against the U.S. dollar. In relation to sterling, Eurocurrency falls 7 th consecutive day after the IMF Managing Director Dominique Strauss-Kahn said that the budget problems Greece fairly serious. The Canadian dollar showed its maximum drop in nearly 3 months after the report on consumer inflation has not justified forecasts of analysts (consumer price index in December rose 1.3% y /y, which is below the average analysts” forecast of 1.6%).
What to expect?
We need to understand whether the U.S. dollar to trade in line with the previous strategy, when the signs of improvement ineb3the economy, investors are shifting money from dollars into higher-yielding currencies, or whether it will strengthen against the backdrop of favorable economic news and expectations of more U.S. imminent rise in interest rates. It is likely that busy week of events will shed light on this situation. Today is scheduled to yield a number of important indicators. In particular, the euro area expected to publish the monthly bulletin of the ECB. In the UK there are data on the pure volume of public sector borrowing. In the U.S. there are data on initial applications for unemployment benefits, an index of business activity FRB of Philadelphia, the reserves of oil and petroleum products according to the U.S. Department of Energy.
Why worry?
In the absence of consensus on the direction of further tenders for the U.S. dollar is very likely to volatile changes in his situation.
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