Posted October 28, 2010
The UK pound and the US dollar improved. Data helps push currencies.
During the currency session on Tuesday, the UK pound improved by more than one percent. This came after positive data, that was better than expected, came out of the UK to help show the country’s economic growth is improving. This helped to ease investor’s minds about the possibility of the Bank of England needing to use more stimulus. The sterling moved from US $1.5749 as of late Monday to US $1.5839 for the day. The information out of the Uk showed that the country’s gross domestic product increased by 0.8 percent over the previous quarter.
The US dollar also managed to improve during the trading session on Tuesday. It gained throughout the day due to a report out that showed that US home prices rose by as much as 0.4 percent from July to August, seasonably adjusted. In addition, a report indicated that consumer confidence rose in the month of October. As such the US dollar improved on the ICE Dollar Index which moved the dollar from 77.075 as of late Monday in New York trading to 77.670 by the end of the day.
Also notable during the Tuesday trading session was the movement by the Japanese yen. The US dollar moved from Y 80.81 at the close of business on Monday to Y 81.46. It rose during both the European and the United States trading sessions. However, there was no movement of notable worth occurring during the Asian trading hours. During the Monday trading session, the US dollar fell to new lows against the yen, to Y 80.41. The Japanese finance minister stated that he is only monitoring the situation with great interest, but did not imply the country would take action to intervene in the markets.
Also notable during the Tuesday trading session was the movement of the Swedish currency, the krona. It fell significantly during the trading session after the country’s central bank took steps to tighten up monetary policy and increased its repo rate. However, the central bank did say it would not need to raise rates in the future as much as it has expected to do so. This was due to the uncertain global growth occurring. The rate increased moved from 0.75 percent to one percent. The krona moved from 6.7257 against the US dollar. It feel to 9.3149 against the euro during the day.