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Euro, Swiss Franc, and Pound Move on Latest News
May 21, 2008
The latest round of news from Europe was generally positive for their major currencies.
First, on the heels of the ZEW President Franz's prediction of an ECB rate hike, the IFO business confidence survey was up in 3 categories - business climate, expectations, and current assessment. With that extra kick of good news, the Euro crossed the 1.570 mark, and is at 1.5768 in late trading. Having broken the $1.53 - $1.56 range, the Euro is almost defintely going to test the $1.60 level.
The Swiss also posted their share of good news, with a drop in unemployment. FX traders frequently turn to the Swiss franc when exiting carry trades, the continued global stock sell off may have been a more important macro driver today.
The minutes from the Bank of England showed that only one of nine members voted for a 25 bp rate cut on may 8. With March inflation at 0.8% and annual numbers hovering around 3%, the BOE seems to be handcuffed to a policy of rate cut aversion. However, it should be noted, that Ernst and Young Item Club member Peter Spencer has warned that inflation targeting may cripple consumers. Mr. Spencer suggests that the BOE switch to a core number that excludes energy and food (similar to the US). The Pound is at $1.9707 and may soon $2.00 again.
Bank of England, BOE, jobs report, Franc, EUR, minutes, rate hike
Weak Manufacturing Data, Jobs Sends US Dollar Down Against Commodity Currencies.
May 15, 2008
US Manufacturin data continue to show signs of contraction on Thursday. The Empire Manufacturing index and the Philly Fed showed signs of contraction for a 6th month. The Empire Manufacturing reading came in at -3.2, down from 0.6. The Philly Fed did show some signs of life, rising to -15.6 from -24.9 Overall, Industrial production was down to -0.7%, after the biggest decline since Hurricane Katrina. In addition, jobless claims rose by 6,000 to 371k.
Depsite the bevy of bad news, the dollar was little moved agasinst non commodity currencies. (Perhaps these are lagging indicators?? Hmmmm). The greenback was up against the Swiss Franc and Euro.
Tomorrow could be a bigger day - with Housing Starts and the University of Michigan Confidence Index. reporting.
Read more at Yahoo
Greenback, Euro, jobs report, Franc, USD
Greenback Up Against Swiss Franc, Yen, GBP
May 6, 2008
US Treasuries continued to gain ground against other currencies. Against the Yen, the Dollar was trading at 104.81 (+0.12). The dollar aslgo gained ground on the pound sterling (+0.15) and the Swiss franc (0.009).
Read more at CNBC
Greenback, JPY, Franc, Yen, GBP, Pound, USD
