The US currency remains under downward pressure. The negative impact of last week’s disappointing labor market report on the markets was only short-lived. Some commentators were actually of the opinion that the job losses were boosting equity markets and weighing on the dollar, arguing that the weak labor market is enabling the Fed to continue to maintain its expansionary monetary policy.
The US currency remains under downward pressure. The negative impact of last week’s disappointing labor market report on the markets was only short-lived. Some commentators were actually of the opinion that the job losses were boosting equity markets and weighing on the dollar, arguing that the weak labor market is enabling the Fed to continue to maintain its expansionary monetary policy.
Crude oil rose above $76 a barrel to a one-year high in New York after an Energy Department report showed an unexpected decline in U.S. gasoline stockpiles as refineries idled units for maintenance. Crude oil for November delivery climbed 42 cents, or 0.6 percent, to $75.60 a barrel at 11:21 a.m. on the New York Mercantile Exchange.
The euro zone is scheduled to release its trade balance indicator. Expectations are for the trade surplus will narrow and this is most likely because of lower exports as a result of the weak demand and higher euro.
The dollar edged higher against the yen and the euro in Asia Wednesday, though the dollar’s weakening trend is still dominant. Dollar’s retreat from 90.00 area on Monday has extended below 88.60 support area and the pair reaches levels at 88.26, with expected next support level at 88.20.
After declining to a 4-month low yesterday hitting 1.5705, the Sterling has rallied during the last 24 hours to reach 1.5990 which is the Asian session high, right below psychological 1.6000 level. The sterling hit 1.6120 high on last Oct 8. The pair rallied ahead of the release of unemployment rate in England that is forecasted to reach 8.0%.
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