After hitting 2009 record lows versus several currencies of different profiles like the Australian dollar, Brazilian real and Euro, the dollar did not manage to rebound mainly versus the latter, since several optimistic reports suggested that economic conditions in Europe are improving.
The Dollar Index declined today to the lowest level in 12 months, as investors expect that the real estate market in the United States will improve even further, helping confidence to emerge as capitals tend to flow towards to riskier assets, decreasing attractiveness for the greenback. The Euro managed to climb even further setting a new high for 2009 as Eurozone’s trade surplus grew in July, indicating that demand for European products are high, which attracted investors to purchase euro-priced assets. The South Pacific currencies, considered “high-yielders” if compared to the other 6 main traded ones climbed near neutrality, after setting 2009 highs this week.
Optimism in global markets continues on the rise, fact which is negative to the U.S. currency. The forecast for the dollar currency pairs is likely to continue to be in favour of the dollar’s rivals, mainly versus the European common currency, since the economic region is outperforming the U.S. in its rebound, posting a nummber of favorable reports through the last weeks.
EUR/USD traded at 1.4729 as of 10:58 GMT from a previous rate of 1.4673 yesterday. AUD/USD traded near neutrality in the intraday comparison at 0.8733.
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