U.S. Dollar Advances Across the Board as Risk Appetite Wanes
12.06.2009 (10:28)
EUR/USD consolidated around 1.4100 much of the Asian session,
before slumping to session lows of 1.4069, with the stronger dollar led
by the commodity block with both AUD and CAD coming under pressure
before EUR and GBP began to lose ground. On AUD, EUR/AUD buying and
AUD/NZD selling weighed on the currency. Also seen bearish for AUD and
CAD were the comments from the chairman of the China
Banking Regulatory Commission, asking whether positive signs in the
economy are for real, noting that the incongruity between the Chinese
stock market gains while corporate profits are falling. Despite EUR
gains, the economic outlook for the Eurozone remains grim with German
Chancellor Merkel stating that that she does not expect a speedy
economic recovery and that the crisis is not over with a long and
difficult road ahead. Reports from both the ECB and IFW released on
Thursday do not anticipate a recovery until mid-2010. And while the IMF
raised their global growth forecast on Thursday, the World Bank lowered
their estimate to -3% from -1.75% for this year. Offers on EUR/USD are
reported at 1.4180 and 1.4200 and as high as 1.4260 with buyers
reported at 1.4050, 1.400 and 1.3900.
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