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US economic and corporate earnings data releases
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Thursday, 16 April 2009 |
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Trading so far this week has seen the US Dollar showing little sign of strengthening against Sterling, Monday’s US retail sales and PPI data releases did little to attract further support for the Greenback.
This week we see a big week ahead for US economic and corporate earnings data releases, this will affect market sentiment and support for the greenback. The CPI data out on Wednesday and the March housing stats and jobless claim figures due on Thursday are likely to see some market movement, however barring any surprises these fluctuations in the rates of exchange may be short lived.
With the Greenback still primarily utilised as a safe haven foreign currency, investors in search of higher yields will look elsewhere to meet the demands for a higher return. Therefore unless alternative markets and riskier currencies become unacceptably risky, forcing investment back into US Dollar, the current trend looks set to continue.
With the Pound holding position against the Dollar and no major surprises expected this week from UK data releases, it remains to be seen if the cross will overcome its current resistance to break through the 1.50 barrier. The Bank of England has confirmed it will achieve its objective of purchasing £75bn in government bonds or guilts over the next two months, with £26bn injected so far, this has assured investors and traders alike that the UK’s plan for recovery is being delivered upon in a structured way. »
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