Dollar Rises, but Falls Back
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In the currency market, the dollar was little changed against the euro. Late Tuesday, the euro was trading at $1.578 vs. $1.5775 on Monday.
“The dollar sentiment is so negative right now that any temporary improvement is not going to be taken very seriously, so long as it takes place before Thursday,” said Ashraf Laidi, of London-based CMC Markets. “That’s where the main point of focus for this week really is.”
Laidi referred not only to the results of Thursday’s meeting of the ECB, but also to the nonfarm payrolls data, which will also be released on that day. Could be a very volatile day, with diminished numbers of traders at their desks.
The buck had made some early gains but gave them back as the day wore on. The Institute for Supply Management reported its factory index rose to 50.2% in June from 49.6% in May, the first gain since January. The prices paid index — a measure of inflation — also rose, to 91.5% from 87% in the previous month, the highest level since 1979.
“When you look beneath the numbers, it still showed a pretty big slowdown in the US since unemployment was down and new orders were weaker,” said Boris Schlossberg, of Forex Capital Markets. “When the market took a closer look at this, it lost their initial enthusiasm and it was back to square one for the dollar.”
Source: Dollar Rises, but Falls Back
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Tags: CMC Markets, Doug Casey, euro, US dollarAbout the Author
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