NEW! Investment Companies Centre

FX round-up: Downbeat data, profit taking hits dollar

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Wednesday 20 Aug 2008

LONDON (ShareCast) - A gloomy report on the US housing market, higher than expected inflation and another negative session on Wall Street sent the dollar lower against a basket of major currencies Tuesday.

The rise in oil prices and profit taking also helped to erase the greenback’s recent gains against the euro and the yen.

The dollar’s recent ascent against major currencies has been supported by weak eurozone and Asian economic data compared to relatively upbeat US data. However Tuesday’s grim picture of the US economy helped cement the dollar’s second day of declines, reversing several weeks of gains.

The dollar was little moved by comments from the president of the Dallas Federal Reserve Richard Fisher in a speech Tuesday evening. Fisher said the Federal Reserve is ready to increase US interest rates if inflationary pressures are not eased by a slowing economy.

The yen was higher against the dollar as the Bank of Japan, as widely expected, kept its main interest rate at 0.5%. In its accompanying statement the BOJ cut its economic growth outlook.

Sterling remained weak against major currencies as pressure from the latest batch of gloomy UK economic data kept buyers away.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).