Dollar softer as risk sentiment stabilizies

The greenback was mostly weaker against the majors, with the exception of the British pound as risk sentiment stabilized. Stocks advanced, precious metals corrected after hitting record highs, and the euro shrugged off a ratings downgrade of Portugal and 30 Spanish banks. Japanese yen crosses are broadly higher ahead of further potential intervention prospects. EUR/GBP saw a squeeze higher and cable plunged as disappointing retail sales out of the UK weighed negatively on the pound.

Labor data released today out of the US showed a slow but continuing improvement in the job market with initial claims falling to 382K from the previous week’s 387K. This was slightly better than the expectations of 383K. The 4-week moving average also edged lower to 385.3K from last week’s 386.8K. In other economic data, durable goods orders for February surprised to the downside. Headline durable goods orders dropped by -0.9% (cons. +1.2% prior +3.6%) and durables ex transportation disappointed with a print of -0.6% (cons. +2.0% prev. -3.0%).

U.S. equities rose amid positive earnings data with the Dow Jones Industrial Average finishing the day higher by around +0.70% and the S&P 500 advancing nearly +0.94%. Commodities experienced large swings with a sharp correction in the precious metals after gold printed new record highs. Gold reached prices of nearly 1447.70 before declining by about -0.48% and silver showed similar price action, falling sharply after a climb higher and is down about -0.08%. Oil slid by about -0.26%.

On the data front for the upcoming Asia/Pacific session are the Tokyo March CPI, February Japan national CPI, weekly securities investment abroad data and China’s leading index for February.

Источник: Forex.com

24.03.2011