The US dollar spiked higher against its major rivals in early Asian trading on Friday and touched new multi-month highs against the European majors. With the dollar on the rise, stocks tumbled around the world, intensifying risk aversion and interest in the world’s reserve currency.
The greenback touched 1.3671 against the euro around 8:05 pm ET Thursday, the highest level since May 20, 2009. This may be compared to Thursday’s New York session closing value of 1.3724. The euro-buck pair is presently worth 1.37 with 1.343 seen as the next likely target level.
The recovery process in the Eurozone economy is likely to be uneven, European Central Bank President Jean-Claude Trichet said Thursday, after the central bank retained key interest rate at a record low of 1%.
In his introductory statement, Trichet said this outlook remains subject to uncertainty. The outcome of the monetary analysis confirms the assessment of low inflationary pressure over the medium term, he added.
Against the Swiss franc, the greenback rose to more than a 5-month high of 1.0697 at the same time, compared to 1.0671 hit late New York Thursday. If the dollar-franc pair gains further, it may challenge resistance near the 1.071 level. The pair is presently quoted at 1.0660.
The US currency also surged higher to 1.5731 against the pound around 8:05 pm ET Thursday and this set the highest mark for the buck since October 13, 2009. The cable is currently quoted at 1.574, compared to 1.5758 hit late New York Thursday. If the greenback breaches the 1.571 resistance, it could set its strongest level in more than 8-1/2 months.
The Bank of England halted its GBP 200 billion bond purchase programme and retained its key interest rate on Thursday as policy makers assured these measures would continue to impart a substantial monetary stimulus to the sluggish UK economy for some time to come.
The US dollar drifted higher to 89.75 against the Japanese yen around 7:00 pm ET Thursday, compared to Thursday’s New York session closing value of 89.07. The greenback-yen pair held steady thereafter and is presently quoted at 89.7 with 90.6 seen as the next target level.
Looking ahead, Japan will release its preliminary leading and coincident indexes for December at 12:00 am ET. Analysts are looking for a score of 93.5 for the leading index – up from 90.7 in November. The coincident is expected to climb to 97.3 from 96.0.
From Europe, the French Trade balance and German industrial production-both for the month of December, U.K. January PPI and the Italian preliminary consumer price index for January are slated for release.
In the U.S., markets are closely watching the Labor Department’s monthly non-farm payroll report, which is due out at 8:30 am ET. Economists expect a rise of 13,000 jobs while the unemployment rate is forecast to rise to 10.1 percent.
When I originally commented I appear to have clicked the -Notify me when new
comments are added- checkbox and from now on every time a
comment is added I recieve 4 emails with the exact same comment.
Is there a way you are able to remove me from that service?
Thanks!
Appreciation to my father who informed me on the topic of this web
site, this blog is truly remarkable.
Pretty nice post. I just stumbled upon your blog
and wanted to say that I’ve really enjoyed browsing your
blog posts. In any case I’ll be subscribing to your feed and I hope you write again soon!
Nice post. I learn something totally new and
challenging on blogs I stumbleupon on a daily basis.
It’s always helpful to read through articles from other writers and practice something from their
websites.
When someone writes an post he/she retains the idea of a user in his/her brain that
how a user can understand it. Therefore that’s why this
article is great. Thanks!
Wonderful article! This is the kind of information that should be shared across the internet.
Shame on Google for now not positioning this publish higher!
Come on over and consult with my site . Thanks =)
I’m extremely impressed with your writing skills and also with
the layout on your weblog. Is this a paid theme or did you modify
it yourself? Anyway keep up the excellent quality writing, it
is rare to see a great blog like this one these days.
We’re a gaggle of volunteers and opening a new scheme
in our community. Your web site offered us with valuable info to
work on. You’ve performed a formidable job and our whole neighborhood will
probably be grateful to you.
Way cool! Some extremely valid points! I appreciate you penning this post plus the rest of the website is very good.
Informative article, just what I wanted to find.