Posted December 23, 2010
US dollar loses gains in later session. UK pound falls.
During the Wednesday currency trading session, the US dollar gave up many of the small gains it made during the earlier portion of the day’s trading. This came after a report was produced showing that existing home sales in the country did not rise as much as what analysts said the numbers would rise. The report indicated that sales of existing homes sold at a higher rate of 5.6 percent, as seasonally adjusted, but that number was significantly lower than what experts predicted.
Notable during the Wednesday session was the UK pound’s movement. The UK pound fell during the session as economic data and more information about the country’s monetary policy was released. The Bank of England’s moves were not viewed as positive by currency investors.
The UK pound continued to have a weaker day during the Wednesday trading session. The Pound moved from US $1.5469 at the end of the Tuesday session to US $1.5377 by the end of the Wednesday session. The UK pound also fell against the euro. The euro rose .5 percent against the UK pound to 85.16 by the end of the trading session.
Also hurting the UK pound was information from the Office for National Statistics which showed a lowered estimated growth for the third quarter to .7 percent from the previous estimate of .8 percent.
The US dollar index moved the US dollar from 80.711 at the end of the Tuesday trading session in North American trading to 80.723 at the end of the session on Wednesday. A report out of the US Commerce Department also stated that the economy expanded at 2.6 percent pace during the third quarter. This was slightly more than what estimates indicated.
The Euro moved from US $1.3096 at the end of the session on Tuesday to US $1.3094 by the end of the Wednesday session. The news coming from Europe indicates common concerns with the need to ease monetary policy by many countries in an effort to fight the continued debt problems in numerous countries. Many countries, investors believe, need to take steps to control monetary spending in the country’s budgets.
Against the yen, the US dollar moved from Y 83.78 by the end of the trading sesson on Tuesday to Y 83.59 by the end of the session on Wednesday.