How's everyone today?
Now an interesting even happened today as the Dollar closes on a near one-week low where it fell by 0.2% against 15 or 16 of its major peers as US stocks boosted demand for higher-yielding assets (Zachariahs, 2012).
However according to Catarina Saraiva: (its) not since 1999 have currency
traders been bullish on the dollar for so long (2012). She also states that this may be a sign that the US Dollar might resume its role as the 'engine of global economic growth' (Saraiva, 2012).
Saraiva also states that although most of the growth gain the Dollar Index since 2009 (2.4%) come from investors seeking refuge by buying US assets from the European economic turmoil and overall GFC (2012). Also as we have seen in the recent weeks, this is evident as retails sales and jobs have been increasing in the US.
In other news, the CAD rose by 0.5% against the USD (Fournier, 2012) and so has the New Zealand & Australian Dollar against the Yen as we have seen a decrease in the JPY yesterday (Aquino, 2012).
We hope this has been useful to you and remember to trade wisely! It is not to predict but to react to the situation!
Have a great day everybody!
All articles: March 20th 2012, Candice Zachariahs, Catarina Saraiva, Chris Fournier, & Kristine Aquino, Bloomberg.com.
To read the full articles, go here:
http://www.bloomberg.com/news/2012-03-19/dollar-near-one-week-low-versus-euro-before-fed-bernanke.html
http://www.bloomberg.com/news/2012-03-19/dollar-bulls-beat-bears-in-futures-for-longest-since-1999.html
http://www.bloomberg.com/news/2012-03-19/canadian-dollar-fluctuates-amid-decline-in-u-s-stock.html
http://www.bloomberg.com/news/2012-03-19/kiwi-to-rise-to-69-63-yen-on-elliott-technical-analysis.html
http://www.bloomberg.com/news/2012-03-19/aussie-near-10-month-high-versus-yen-before-rba-minutes.html
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