Friday, May 1, 2009

FOREX-U.S. dollar, yen slide as risk appetite rises

The U.S. dollar and yen fell on Friday as increasing risk appetite sparked by better-than-expected U.S. economic data pared demand for both currencies as a refuge against the global slowdown.

The dollar fell for a fourth straight session versus the euro, while the yen dropped to a two-week low against both the euro and dollar, with volumes thin given the May Day holiday in Europe. Higher-yielding currencies such as the Australian and New Zealand dollars were some of the biggest movers on the day, moving in tandem with higher U.S. stocks.

New data on Friday reinforced the view that the worst of the recession may have passed, making investors more comfortable with risk-taking. Reports showed U.S. consumers felt more upbeat about the economy in April while a key gauge of manufacturing suggested the sector was gradually emerging out of a prolonged recession.

Risk appetite is definitely coming back and the data this morning was phenomenal, said Melvin Harris, a market analyst at Advanced Currency Markets in New York.

The reports are supportive factors to truly build the case that while things are not completely better yet, we are moving in a positive direction. Economic fundamentals will become more important in the next couple of months.

The numbers were consistent with the Federal Reserve's less bleak outlook on the U.S. economy issued on Wednesday.YEN FALLS; AUSSIE, KIWI RISE

1 comment:

  1. It just look like that you are new to blogging but you have well managed it. But you have very few posts. Try to arrange or make a different Template which look like your blog. and do more posts on daily bases. At least one post a day. I think you have to put more posts about your blog about your self and about forex like forex trading and analysis, sports and traveling busses and etc..!
    This are my blogs just look at these blogs and see how i managed them. I am not saying that i am an expert of of blogging but i can say that to get traffic you need to do very hard work.
    http://www.bollywood103.blogspot.com/
    http://www.global-banks.blogspot.com/
    http://www.latest-cameras.blogspot.com/
    http://www.intelprocessor2015.blogspot.com/
    http://www.peoplestudentfederation.blogspot.com/

    ReplyDelete