Tuesday, August 14, 2012

Is the US Dollar Finally Breaking Out of Its Funk?



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

No comments:

Post a Comment