Friday, November 2, 2012

Dollar Gains Ahead of U.S. Data - Fundamental Forx News Of Today

Dollar Gains Ahead of U.S. Data. The dollar rose against most major currencies after U.S. data fanned estimated employment figures today showing a recovery in the largest economy in the world. Yen extends reprieve against most major currencies as signs of weakening Japanese economy and coupled with disappointing results on Japanese corporate earnings spurred speculation the Bank of Japan will add to monetary easing.

"If we get very good data from the U.S., we will see investors hunt for dollars, as the U.S. dollar will strengthen" said Sue Ann Lee, an economist at United Overseas Bank Ltd.. in Singapore. "When we get the data very bad and some things not so well, usually dollar for dollar was also supported safe-haven currency."


Comment Swan injures Aussie



Aussie weakened at the London session, pressured by comments from Australian Treasurer Wayne Swan are back many hopes of RBA monetary easing at a meeting next week. "Australia's financial assets have now become part of the global portfolio allocation. This has encouraged the flow of foreign funds into Australia so as to encourage the strengthening Australian dollar," said Swan. "With fiscal policy on a consolidated and controlled inflation the Australian economy still has room to get a lower interest rate."

Swan and several other ministers in the cabinet goverment has prompted the central bank to ease monetary policy to help the economy at a time when the government is trying to record a budget surplus. Reserve Bank of Australia has cut interest rates by 25 basis points at the October meeting. The latest survey also showed the RBA will cut rates again by 25 basis points to 3% at the meeting of 6 November.

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