The rally in the dollar overnight following upbeat U.S.
economic news may well mark the start of something currency strategists say
they have not seen for some time – the dollar’s direction being driven by the
prospects for the economy rather than just risk appetite according to cnbc.
Tuesday’s stronger-than-expected U.S. retail sales data for
July have dampened talk of further monetary easing from the Federal Reserve and
could also set the tone for currency markets ahead of the central bank’s annual
symposium at Jackson Hole, Wyoming, at the end of this month, analysts add.
After the data release, the dollar rose against all major
currencies. In Asian trade Wednesday, the greenback hovered near a one-month
high of 78.94 against the yen and was steady against the euro .“For once, the
dollar traded on the outlook for the U.S. economy and not on risk appetite,”
said Kathy Lien, Managing Director of FX Strategy for BK Asset Management in a
note.
Read all about it at http://www.cnbc.com/id/48669343
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