Previous session overview

The dollar and Japan's yen rose Wednesday as foreign-exchange markets took a cue from mostly sagging equity markets, leaving the lower-yielding currencies as beneficiaries as investors sought safety from the unknown in riskier assets.

On Tuesday, the dollar pared losses after trading near a two-month low against the euro, a move coinciding with U.S. stocks pulling back from sharp morning gains, following a disappointing report on the outlook for U.S. service-based industries.

The dollar index (DXY), a measure tracking the performance of the greenback against a basket of six major currencies, rose to 84.201, up from 84.113 late Tuesday.

The euro slipped to USD1.2588 from USD1.2618 seen in late North American trading Tuesday. Against the yen, the euro lost about 0.5% to JPY109.89.

The dollar slipped to buy JPY87.30, down from JPy87.46 Tuesday.

The yen tends to be the ultimate beneficiary of safe-haven flows when investors are more risk-averse, as they are when stocks sell off.

The British pound fetched USD1.5145, compared to USD1.5135 late Tuesday. The Bank of England's policy makers are to announce their decision on interest rates Thursday.

Market expectation

On Wednesday, the Committee of European Banking Supervisors is expected to provide details about the main features of the methodology, the list of the firms covered and the date the results will be published. The market will be sensitive to any perceived leniency in criteria, said analysts.

Analysts said USD1.2675, last reached in mid-May, remains a key technical level for the common currency, adding that if the euro can break through that ceiling, it could reach USD1.30 in the coming weeks.

Disclaimer: the data made available by Dukascopy (Suisse) SAis for informational purposes only. Publication of this data by Dukascopy (Suisse) SA does not constitute provision of investment advice and Dukascopy (Suisse) SA assumes no responsibility with regard toany information, forecast or recommendation herein contained and assumes no responsibility with regard toany losses resulting from any activities conducted the basis of this data, including any investment decisions.

Comments

Add New Search

Write comment
Name:
Email:	do not notifynotify
Website:
Title:
Please input the anti-spam code that you can read in the image.

Powered by !JoomlaComment 3.26

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."