The new market changes have had an impact on the rather contrasting currencies today. Indeed, the dollar still enjoys its status as a safe but has lost ground against the euro and the yen due to return to the appetite for risk among currency traders. Daily Finance and Investment Tips / Make Money by Learning
This renewed confidence of the market is particularly linked to the good news on Monday announced the rescue of Citigroup, whose future was still uncertain this weekend. The markets welcomed the rescue with relief, pushing upwards the actions and in their vein the European single currency reached a high yesterday to 1.29 dollar on the Forex. However, investors in the foreign exchange markets remain skeptical about a rally sustainable stock markets which explains the apparent caution on the foreign exchange market.
Finally, despite the announcement by U.S. authorities of a set of measures to support the consumer credit and the property market, measures to mobilize up to 800 billion dollars, the dollar has for once, unlike ever, been penalized by bad news from the United States. On the one hand, the OECD has confirmed that the crisis should not end before the end of 2009 and that it should reach more deeply the United States. On the other hand, the U.S. Department of Commerce has revised its GDP forecast for the third quarter, the latter posting a fall of 0.5% against 0.3% previously expected.
Usually, the dollar, benefiting from its status as a safe, is not really destabilized by such news, which bear their costs to other currencies, including the single European currency. Indeed, generally, investors prefer to protect their assets then retreat to the dollar or the yen. However, this accumulation of bad points about the U.S. economy also seems now weigh in the balance, explaining the slight withdrawal of the U.S. currency since the beginning of the week.
