The dollar is losing this week versus important major currencies like the euro and the pound as renewed optimism towards an economic recovery damped demand for the safety profile of the United States currency, as investors moved their bets to riskier assets.
A combination of bullish stock markets and speculations regarding an upcoming credit report in the United States affected the dollar negatively, as at the same time that investors seek higher yielding options as stocks grow, the U.S. credit report to be released today is likely to show a sharp fall, which is decreasing attractiveness for the greenback. The Japanese yen was one the biggest winners versus the greenback today as the government is likely to extend its measures to stimulate the economy, bringing renewed confidence towards the Japanese economy, which posted today a report indicating a fall in the numbers of bankruptcies for the first time in three monhts.
The bullish sentiment in equities markets is weighing negatively for the dollar, as being the main global reserve currency in the world, its safety profile attractiveness is decreasing thanks to a higher level of risk aversion among traders. Currencies like the yen and the pound still have room to climb versus the U.S. dollar, but its unlikely that the greenback will lose sharply, at least in the short-term.
USD/JPY traded at 92.31 as of 9:06 GMT from a previous rate of 93.17 in the intraday comparison. EUR/USD traded at 1.4418 from 1.4344.
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Source: topforexnews.com
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