May 2, 2012
The U.S. dollar rose today
The U.S. dollar rose today against its major counterparts after weak data came from the investors confidence in the euro area and concerns about the outlook for global economic growth, which had an impact on the demand for risky financial instruments.
During the European morning trading, the dollar rose against the euro, EUR / USD lost 0.09% to hit 1.3095.
The sentiment against the euro came under pressure after data showed that investor confidence has dropped unexpectedly in the euro area in April and spent the ninth consecutive month in negative territory.
Sentix announced that investor confidence has declined in April compared to March, from minus 8.2 to minus 14.7. Analysts had expected that the index will decline slightly to 8.1.
The concerns about the debt crisis have also grown as the interest on Spanish bonds with 10 years maturity increased to 5.8% today, while the country will have to bring the budget deficit next year to 3% of gross domestic product.
The weaker than expected U.S. employment data on Friday to ensure ongoing doubts about the strength of economic recovery in the U.S. and also strengthened expectations that the Federal Reserve will launch a new round of quantitative easing, which weakens the dollar.
The greenback also rose against the pound, GBP / USD lost 0.16% to hit 1.5865.
Industrial data previously showed that house prices in Britain in March, the slowest decline recorded since June 2010.
The Royal Institute of Chartered Surveyors, the seasonally adjusted house price balance of minus 13 to minus 10 corrected, more than the predictions of a rise minus 12 to
The greenback also fell against the yen, although it was recorded against the Swiss franc gains. USD / JPY lost 0.28% to hit 81.26 and USD / CHF added 0.08% to hit 0.9178.
The Bank of Japan left its benchmark interest rate near zero and left untouched the program to buy yen at 30 billion yen, which was also widely expected.
The central bank said that no member has proposed additional easing, as the two-day meeting was over, even if the investors at the next meeting on 27 April expect further concessions.
The greenback rose against its Canadian, Australian and New Zealand counterparts. USD / CAD rose by 0.08% to hit 0.9984, AUD / USD lost 0.21% to hit 1.0291 and NZD / USD fell by 0.39% and was trading at 0.8185.
The sentiment on growth associated with the dollar was down, after official data showed today that China's imports have declined severely in March, which lowered the outlook for global economic growth.
China published a trade surplus of U.S. $ 5:35 billion, as imports rose by only 5.3% after it was recorded in February, an increase of 39.6%.
In Australia, a report showed that the index has risen for the business trust on March 3 after a value was recorded in the previous month of 1.
The data came after a separate report showed that new job advertisements in Australia have increased by 1% in March, was recorded in the previous month after a 3.3% increase.
The dollar index, which tracks the performance of the greenback against a fixed basket of six other major currencies, was up by 0.07% to hit 80.02.
by erectusplus at 7:48 AM |
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