Posted September 06, 2011
Economy is focus. Trading focuses on safe haven status.
The US dollar falls at the opening session on Monday after stocks gain on the data released. The better than expected data out of the US economy did not provide teh support for the currency. This pushed investors to the more risky currencies in the hope of turning a profit. They moved away from the safer havens and into more risk while the positive data came to the forefront. This pushed the US dollar index from a position of 73.825 at the close of business on Friday in New York to 73.728 for the day on Monday. The remarks by Fed Chairman Bernanke helped to strengthen the moves of investors after it became clear that there was no immediate plans to add stimulus to the country's economy, but there were options available if that became necessary. In addition, the euro moved from a position of US $1.4483 at the close of business Friday to US $1.4516 for the day Monday. The UK pound moved from US $1.6341 to US $1.6410 for the day. The US dollar also moved from Y 76.71 at the close on Friday to Y 76.84 for the day.
The Tuesday markets saw the US dollar pare gains against most of its competitors after a policy meeting showed there was no agreement on what tools would be best if the Fed need to use them. This also was affected by the euro, which faced pressure after the results of an Italian debt auction were not good. There is still significant fear in the markets about euro debt concerns. The US dollar index moved to trade at 73.968 by the end of the session, down from the 74.065 that occurred prior to the release of the data. The euro moved to trade at US $ 1.442 for the day. The US dollar fell to Y 76.67 for the day. The UK Pound traded at US $1.6310 for the day as well.
The Wednesday trading session saw improvements in the greenback. This came against the euro after reports issued showed that there was some improvement in the business sentiment remarks. The US dollar was lower during the earlier portion of the day after US payroll growth was lower than what the country's economists had expected it to be. The US dollar index moved to trade at 74.162 by the end of the trading session. The euro moved to trade at US $1.4369 for the day. The UK pound moved to trade at US $1.6247. The US dollar traded at Y 76.58 for the day as well.
The US dollar moved to rise against most of its competitors during the Thursday currency trading session. The euro did fall after poor manufacturing activity worries investors about the strength of the euro zone's economy. The US Dollar Index moved to trade at 74.50 for the day. The euro moved to trade at US $1.4270 by the end of the session. The UK pound moved to US $1.6247 for the day and the US dollar moved to trade Y 76.82 for the day.
The Friday session saw the US dollar up again, but now as a safe haven after poor nonfarm payrolls deflated the confidence that the investors had in the US economic condition. The US Dollar Index moved to 74.72 for the day. The euro moved to trade at US 1.4197 for the day. The UK pound moved to US $1.6212 for the day. The yen moved to Y 76.72 for the day.