Posted January 26, 2011
The US dollar rises against UK pound. Euro down off 2 month highs.
The US dollar improved on the day against the UK pound. This is the first time that this level of increase has been seen since the beginning of the year. This occurred due in most part to the news out the of UK that an unexpected pullback in the country's economy occurred in the last portion of 2010.
The US dollar fell against the euro during the currency trading session, after a day of wavering on both sides. The US dollar did see some benefits throughout the day due to the strong US consumer confidence reports out during the currency trading session. After the day's trading, though, the euro remained strong as investors mainly due to the strong interest in bonds, the first of which were sold during the session that were underwritten by the European rescue fund.
The US dollar moved during the trading day from 78.013 at the end of the North American trading session on Monday to move to 77.973 by the end of the trading session on Tuesday. The US dollar lost value against the Japanese yen during the trading day. This occurred as Treasury yields fell during the session.
The UK pound was one of the few currencies to lose ground against the US dollar during the session. It moved from US $1.6003 as of late in the trading day on Monday to US $1.5816 by the end of the session on Tuesday.
The euro improved against the UK pound as well. The euro rose by 1.3 percent against the UK pound during the session. This came specifically as the reports indicated that there was a significant drop in the economy in the last quarter in 2010 in the country. Though some blamed the poor weather conditions, others believe the contraction was more directed at the economy itself and consumer confidence waning.
Against the euro, the US dollar moved from US$1.3647 as of the end of the trading session on Monday to US $1.3682 during the North American session. Although the trading day did include a touch to fresh two month highs against the US dollar, to as high as US $1.3702 during the late afternoon trading, the currency was unable to hold this increase. Investors, though still concerned with the European debt situation, were happy to see robust investing by other countries including Japan, and private firms.