Monday, January 17, 2011

Currency Roundup | FX Market Fundamental Analysis | 17 January 2011

Currency Roundup | FX Market Fundamental Analysis | 17 January 2011

USD : There was little data out today and the US market was offline due to a public holiday. The greenback was mainly subject to European and global sentiment trends instead. The euro helped the dollar after it stalled and began falling after expectations of a rate hike and an increase in the European Stabilization Fund faded before the meeting of euro-zone finance minister’s tomorrow. It seems investors saw through the rhetoric of last week’s rise to the still unstable fundamentals beneath as sovereign debt markets remain unstable. Chinese data, showing a slowdown in property market and recent news of property taxes and reserve regulatory tightening for Chinese banks may have also helped the dollar, as risk sentiment increased favoring safe haven currencies. Overall the outlook remains uncertain although possibly slightly positive for the dollar. as euro weakens and could resume downward trend again. At midday GMT the dollar traded at $1.3318 to the euro and $1.5915 to the pound. Read more