Sunday, 28 August 2011

Fundamentals are Bad for US Dollar, But Week Wasn’t Bad

The fundamentals on were negative for the US dollar, weakening the currency against some major counterparts, however performance of the buck wasn’t that dangerous, considering all the pressure to the downside.

There were lots of dangerous new for the dollar on. dangerous housing knowledge, rising unemployment claims and slower that expected growth of the US economy. The week ended with the speech of Ben Bernanke, who hinted at possibility of extra stimulus while not detailing an actual arrange.

The dollar was dragged down by the unfavorable fundamentals and fell against the euro and commodity currencies (including the currencies of Canada, Australia and New Zealand). On the other hand, the dollar gained against the franc and rallied versus the yen before losing its gains by the top of the week as there aren’t many choices for investors who want a secure currency, however scared of interventions of Japan and Switzerland. The pound conjointly fell against the buck as Britain has its own problems that erase attractiveness of the nation’s currency.

Next week might also be onerous for the dollar. Analysts predict another unfavorable report about hosing and are pessimistic about employment knowledge.

EUR/USD climbed from 1.4376 to 1.4498, while during the week it dropped to 1.4327. USD/CHF climbed from 0.7904 to 0.8058 and reached the daily high of 0.8157. AUD/USD surged from 1.0380 to 1.0569.

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