USD Under PressureMay 06, 2014 Posted by: Pete Karabatos
TheUSD is under pressure today, trading at its lowest levels since October asmeasured by the Bloomberg Dollar Spot Index, which tracks the currencyrelative to 10 major counterparts. The declinein the value of the USD is attributed to some extent by continued Fed stimulusand low yields on treasury securities. Yieldson 10 year notes are now at 2.60%, the lowest level since February. The Euro in contrast to the USD hit aseven-week high today on speculation that Europe’s improving regional economywill discourage the ECB from introducing additional stimulus. The AUD also strengthened following RBAcomments on Australia’s improving job market. The NZD gained ground against all 16 of its major peers following therelease of its unemployment rate at 5.8%, the lowest since Q1 2009.
•The U.S.trade deficit fell by 3.6% to $40.4 billion in March, driven largely by thestrongest gain in exports in 9 months.
• U.K. services PMI came in above estimates at58.7 in April, registering the highest growth in 4 months.
• The RBA left its benchmark rate unchangedat a record low 2.50% as expected and reiterated borrowing costs are likely to remainlow while also noting improvements in the labor market.
• Thebenchmark 10 year notes of both Spain and Italy rallied today, with yields inboth counties hitting all-time lows, indicating vast improvements in investorsentiment and economic prospects for two of the Eurozone’s struggling members.
05/07 CAD: BuildingPermits (March)
05/07 USD: ConsumerCredit (March)
05/08 EUR: ECB PolicyInterest Rate
05/08 USD: InitialJobless Claims (May 3)
05/09 GBP: Industrial Production (March)
05/09 CAD: UnemploymentRate (April)
05/12 CNY: Retail Sales(April)
05/12 USD: MonthlyBudget Statement (April)
05/13 EUR: ZEW EconomicGrowth Expectations Survey (May)
FX Indications EUR 1.3924 GBP 1.6977 CAD 1.0887 JPY 101.57 CHF 0.8744 AUD 0.9363 RUB 35.3917 INR ...Read More