Dollar Moves Lower
Posted on: Jul 27th, 2009 | By Doug Casey | Filed under US Dollar & Forex Trading
In the currency market, the dollar moved lower against the euro. Late Friday, the euro was trading at $1.4215 vs. $1.4194 on Thursday.
MarketWatch reported that the dollar lost ground to the euro after closely watched surveys indicated the 16-nation eurozone partially braked a fall in output in July.
The Munich-based Ifo Institute’s July German business climate index rose for the fourth-consecutive month in July, posting a reading of 87.3. Economists had forecast a rise to 86.5 from 85.9 in June.
Also, the preliminary Markit euro-zone composite purchasing managers’ index for July increased more than forecast.
The euro saw a modest jump versus the dollar after the data.
“All positive, but let’s not get carried away,” wrote strategists at Brown Brothers Harriman. “Germany’s Ifo index … is on the rise … but remains very low on a historical basis and Germany’s economy is still on track to contract by at least 5% this year.”
In economic news, U.S. consumer sentiment fell in July, according to a survey released yesterday by the University of Michigan and Reuters.
Sentiment rose to a revised 66.0 from a reading of 64.6 in early July, but was down from the June reading of 70.8.
Analysts said the report highlights depressed levels of confidence as well as likely slow growth ahead.
“The July drop-back in confidence at still-depressed levels highlights the anemic pace of growth that appears likely as we enter the early quarters of the recovery,” wrote Mike Englund of Action Economics.
“While off the lows that were recorded when panic and paralysis were the order of the day, this measure of consumer sentiment nonetheless remains severely depressed,” wrote Joshua Shapiro, chief U.S. economist of MFR, Inc.
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