Investors Return
The Dollar Falls against most currencies, while stock markets rebounds. The dollar suffered great volatility, while a number of factors drove the purchase of riskier assets, and consequently, the demand for safe haven currencies fell. The U.S. stock market rebounded, while several U.S. companies reported results that beat expectations. In the banking sector, shares of Bank of America and Citigroup advanced strongly. On the other hand, the U.S. Consumer Confidence which was published on Tuesday, continued to show positive effects.
The U.S. currency lost 130 pips against the euro during the day yesterday, and closed at 1.3322. Much of this phenomenon was due to falling demand for safe haven currencies because apparently the U.S. economy is already showing signs of strengthening. And this despite the fact that the GDP figures were released yesterday. Against the pound, the dollar also lost ground, and ended up losing about 125 pips, reaching 1.4830. But against the yen, the dollar rose 0.6%, about 60 pips. This phenomenon was partly due to the economic situation in Japan, China and the United States apparently getting better.
Today will be published on Unemployment Claims, the Personal Spending, Personal Income and 12:30 GMT. High volatility is estimated after these publications. However, it is considered that only now the market digested the GDP figures published. Analysts estimate that the dollar recover the ground lost during yesterday as some investors would return to take refuge in U.S. dollars. Perhaps the EUR / USD reaches 1.3200 at the end of day.
Tags: Forex
