The dollar is going towards the end of this week with a positive performance versus most of its main trading partners currencies, after a GDP report published today brought figures beyond what analysts suggested, adding confidence for the U.S. economy and currency outlook.
The greenback had its sharpest gains today versus the yen after Japanese policy makers said that they are ready to intervene on financial markets, as a strong yen can aggravate the emerging deflation problem in Japan, making the country’s currency to decline versus the dollar. The euro touched the lowest level in 2010 versus the dollar as budget deficits problems in the Eurozone may spread. The final 2009 quarterly gross domestic product report published today in the U.S. showed a growth of 5.7 percent much above what forecasts expected, allowing the dollar to gain also versus the pound and
The GDP figures are extremely favorable for assets in the U.S. and consequently for the dollar, according to analysts. The positive scenario in the U.S. combined with more risk averse traders specially in Europe and Japan are triggering new records for the greenback that may extend gains in the following weeks.
EUR/USD traded at 1.3924 as of 15:33 GMT from a previous rate of 1.3983 yesterday. USD/JPY rose to 90.75 from 89.71 yesterday.
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