Dynamics
The U.S. dollar has declined slightly in fairly quiet trading yesterday. When the pair EUR /USD went up to 1.4000, the pair GBP /USD rose to 1.6000, and the pair USD /CHF fell to 1.0550. The Japanese yen strengthened slightly against other currencies. When the pair USD /JPY dropped to a mark of 90.20, and the pair EUR /JPY remains in the range of about 126.00. Commodity currencies continued their recovery against the U.S. dollar. Thus, the pair AUD /USD once again managed to recover to a mark 0.8900, the pair NZD /USD broke the 0.7100 level, and the pair USD /CAD has fallen below 1.0600.
Causes
The lack of important data, and investors cautious before important events at the end of the week led to a marked decrease in activity in the market. At the same time, increasing the risk appetite and growth stock indexes have had on the U.S. dollar limited the pressure. Euro was a little to strengthen its position after fears of Greece”s sovereign debt a little weak on the background of conversations that the European Commission approves plan for Greece to reduce its deficit. The Australian dollar also managed to recover from the losses incurred after the unexpected decision the Reserve Bank of Australia left interest rates unchanged.
What to expect?
observed in the present lull in the market eventually could lead to dramatic changes. Investors await key events this week that could affect the future course of trading, which include the Friday publication of data on the labor market in the U.S., meeting the ECB and the Bank of England on Thursday, and now the European Commission”s verdict on the Greek plan to reduce its budget deficit. Prior to this activity in the market is likely to remain low and the dollar will continue to be adjusted against other currencies.
At the same time, some recovery can be expected to make today the data. In particular in the U.S. will be presented to non-production index of thede4Institute for Supply Management data and ADP /Macroeconomic Advisors Employment in the private sector. Strong indicators may support the dollar, ending thus, its correction.
In the eurozone and Britain today would be known the January PMI PMI in sphere of services. In addition, in the euro zone will be published recent data on retail sales. This favorable values will play on the side of European currencies, pushing them up against the U.S. dollar.
Why worry?
medium-term risks to the U.S. dollar remains balanced, but in the short term can not be excluded volatile changes in its position against the publication of new data.
Supporting quotes the single European currency will have the results of the session scheduled for Thursday, the ECB
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Today published a pack of indexes of business activity in the service
Asian stock exchanges today primarily gain weight
The currency market review 03/02/2010
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