FX in a Nut Shell

The US dollar is suffering broad losses. Signs that European growth are moderating or that an Australian rate hike next week is not as easy of a call as it appeared a few days ago has done nothing to dent the persistent appetite for the major foreign currencies. Even a sub-50 reading on South Africa’s PMI did not deter rand purchases against the dollar. Japanese officials meanwhile are voicing more concern about the yen as the dollar edges closer to the JPY83 level. Although the BOJ is widely expected to provide additional support next week, the idea that the Fed is close to resuming a long-term asset purchase program remains the key focus. The contrast with the ECB, which has signaled intentions to continue to exit from its crisis response is stark and continues to undermine dollar sentiment.
FX in a Nut Shell FX in a Nut Shell Reviewed by Marc Chandler on October 01, 2010 Rating: 5
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