 Positive data from China and a strong bond sale by Portugal helped increase risk appetite and boost the Euro against its rivals, while a weak manufacturing report hurt the Pound. Higher yielders were up for the day, with the Yen sliding as a result. |
 While lower against the yen and commodity currencies, the dollar was higher versus the European currencies on Tuesday. The S&P 500 rose 1.95 on the bull market’s 1-year anniversary to 1,140.45, up 69% since hitting a 12-year low of 676.53 one year ago. |
 The Pound slid overnight as Moody’s said UK banks could suffer further write downs and Fitch warned that the UK sovereign credit profile deteriorated. The Euro was pressured by Fitch’s warnings on Portugal and Greece, and with commodities and equities down the greenback and Yen strengthened. Commodity currencies did however get a bounce in the NY morning session. |
 The Dollar was firmer against its major European rivals in overnight trading. The main reason for the risk aversion were downbeat comments from rating agencies on Europe and the UK, and a dissipation of the rally started from last Friday’s non-farm payroll report. In Tuesday’s overnight trading stocks were lower and commodities fell as well. |
The dollar traded mixed on Monday. The S&P 500 slipped just 0.20 to 1,138.50. The euro pared overnight |
 This will brings further information on US consumer spending and attitudes, as well as the state of inventories – a sector has been at the forefront of the economic recovery. |
 Overnight higher-yielders and growth linked currencies including the Aussie, Kiwi and Euro rose against the Dollar and Yen as equities were higher in Asia and Europe following the better than expected jobs reading in the US on Friday. Also, French President Sarkozy gave the markets some reassurance that EU nations would come to the aid of Greece following its austerity measures announced last week. In NY trading the Euro and Pound gave up their earlier gains as US stocks were flat giving a sense of risk aversion during the NY morning. |
The dollar fell and riskier assets rose on Friday. US nonfarm payrolls declined less than expected in February |
 With the US economy losing less jobs in February (-36K) than expected, and the unemployment rate remaining at 9.7%, the forex market showed risk appetite helping to boost higher yielders and commodity/growth linked currencies like the Australian Dollar. The Yen, reclaiming its mantle as top funding currency of carry trade slid during the day. |
FX Strategy Briefing: USD/JPY Gains on BOJ Easing Speculation
Featured \ Hans Nilsson \ 7:03 PM EST \ March 10th, 2010The dollar was higher against the yen but lower versus the euro on Wednesday. China’s exports soared by the most in three years and concerns over Greece’s deficit eased. The US budget deficit rose to a record $220.9 billion in February and wholesale inventories unexpectedly slid in January for a second month. The S&P 500 rose 5.16 to 1,145.61.