Showing posts with label about forex. Show all posts
Showing posts with label about forex. Show all posts

Wednesday, June 3, 2009

FOREX-Dollar holds ground after jump, ECB and BOE in focus

* Dollar holds gains made Wed after data, cbanker comments
* Cross/yen off lows after previous day's falls
* Outcome of ECB, BOE meetings in focus
TOKYO, June 4 (Reuters) - The dollar mostly held its ground on Thursday after a big reversal from 2009 lows on comments from Asian monetary officials and weaker-than-expected U.S. data that took the wind out of a risk rally in other major currencies.
Investors had a reality check on Wednesday when data showed the vast U.S. service sector contracted for the eighth straight month in May and employers axed 532,000 private-sector jobs, undermining optimism about an economic turnaround. [ID:nN03345672]
Comments from several Asian monetary officials to Reuters that Asian central banks would keep buying Treasuries even if the U.S.' credit rating were to be cut also boosted the dollar.
The greenback has come under pressure in the past few weeks partly because the market is nervous about the U.S.' ability to finance its growing debt issuance. [ID:nSP412010]
The dollar rebounded more than 1 percent from 2009 lows against a basket of six currencies .DXY on Wednesday although the move had stalled by Thursday as investors awaited policy decisions at the European Central Bank and the Bank of England