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By; Askap Futures - detikFinance
Describing the "nervousness" market interest rates ahead of the announcement of the European Central Bank (ECB) and England (BoE), today (5 / 5), euros and pounds that could turn strengthened against the dollar should be corrected by the end of trading session.
The euro on Wednesday trading session had climbed up to the range of 1.4936 against the dollar, the highest since December 2009. However, market players then rush to profit-taking action, unwilling to take risks later on the evening before the ECB's agenda.
This time the ECB expected to maintain its interest rate after the beginning of April to 1.25 percent raise. Market players worry the ECB governor Jean-Claude Trichet will not be as hawkish implied earlier at a press conference scheduled after the announcement of interest rates.
At the end of the session, the euro had to give up most of its gains and closed at 1.4827 against the dollar range. Nevertheless, the euro is expected to return to continue to strengthen if Trichet indicates the possibility of the ECB raising interest rates at the next scheduled monetary policy meeting next June.
Similarly pounds, corrected quite sharply from its highest level yesterday and closed at 1.6574 to 1.6491 against the dollar.Negative sentiment for the pound also came from the weak British economic data lately. In the midst of high inflation, the BoE may be forced to postpone all plans to raise interest rates because the UK economy is considered not able to bear the additional burden of rising interest rates.
The ECB is scheduled to announce its rate decision at 18:45 pm Afternoon later. Previously, the BoE will first announce its decision at 18.00 pm.
From the U.S. alone, data released overnight showed U.S. manufacturing sector in April to grow at a rate much lower than market expectations. Weak U.S. economic data stoked concerns about world economic growth that affects the slump in stock prices and commodities. The spot price of gold fell sharply yesterday observed until the lowest range of 1505.80 against the dollar.
Weak data and add the argument that the Federal Reserve is not ready to implement monetary policy more stringent.
Drop in stock prices and the Australian dollar hit commodity performance is closely related to global economic growth.Australian dollar closed down almost one percent at 1.0727 against the U.S. dollar.
Instead, the currency market players chase-safe-haven currencies like the Swiss franc and Japanese yen. In the current world economic situation and political uncertainty, traders tend to turn to the Swiss franc which country's economic fundamentals are considered the most stable.
Against the Swiss franc, the dollar yesterday dropped to new lows in the history in the range of 0.8552. Still, the dollar could regain some of the losses that closed only about 0.03 percent weaker at 0.8610 against the Swiss franc.
While the yen, for the first time since the G7 intervention action, penetrate below the level of 80.50 per dollar. Closed in the range of 80.63 in late trading session, the yen rose about 0.4 percent starting from its closing level on Tuesday.
Strengthening of the yen began to cause concern among market participants. The Japanese government could intervene again hooked to weaken the yen. Japan's economy was sluggish and in post-disaster recovery period, the strengthening yen will only further aggravate the situation. (ATZ) (Qom / Qom)source: detik.com
Describing the "nervousness" market interest rates ahead of the announcement of the European Central Bank (ECB) and England (BoE), today (5 / 5), euros and pounds that could turn strengthened against the dollar should be corrected by the end of trading session.
The euro on Wednesday trading session had climbed up to the range of 1.4936 against the dollar, the highest since December 2009. However, market players then rush to profit-taking action, unwilling to take risks later on the evening before the ECB's agenda.
This time the ECB expected to maintain its interest rate after the beginning of April to 1.25 percent raise. Market players worry the ECB governor Jean-Claude Trichet will not be as hawkish implied earlier at a press conference scheduled after the announcement of interest rates.
At the end of the session, the euro had to give up most of its gains and closed at 1.4827 against the dollar range. Nevertheless, the euro is expected to return to continue to strengthen if Trichet indicates the possibility of the ECB raising interest rates at the next scheduled monetary policy meeting next June.
Similarly pounds, corrected quite sharply from its highest level yesterday and closed at 1.6574 to 1.6491 against the dollar.Negative sentiment for the pound also came from the weak British economic data lately. In the midst of high inflation, the BoE may be forced to postpone all plans to raise interest rates because the UK economy is considered not able to bear the additional burden of rising interest rates.
The ECB is scheduled to announce its rate decision at 18:45 pm Afternoon later. Previously, the BoE will first announce its decision at 18.00 pm.
From the U.S. alone, data released overnight showed U.S. manufacturing sector in April to grow at a rate much lower than market expectations. Weak U.S. economic data stoked concerns about world economic growth that affects the slump in stock prices and commodities. The spot price of gold fell sharply yesterday observed until the lowest range of 1505.80 against the dollar.
Weak data and add the argument that the Federal Reserve is not ready to implement monetary policy more stringent.
Drop in stock prices and the Australian dollar hit commodity performance is closely related to global economic growth.Australian dollar closed down almost one percent at 1.0727 against the U.S. dollar.
Instead, the currency market players chase-safe-haven currencies like the Swiss franc and Japanese yen. In the current world economic situation and political uncertainty, traders tend to turn to the Swiss franc which country's economic fundamentals are considered the most stable.
Against the Swiss franc, the dollar yesterday dropped to new lows in the history in the range of 0.8552. Still, the dollar could regain some of the losses that closed only about 0.03 percent weaker at 0.8610 against the Swiss franc.
While the yen, for the first time since the G7 intervention action, penetrate below the level of 80.50 per dollar. Closed in the range of 80.63 in late trading session, the yen rose about 0.4 percent starting from its closing level on Tuesday.
Strengthening of the yen began to cause concern among market participants. The Japanese government could intervene again hooked to weaken the yen. Japan's economy was sluggish and in post-disaster recovery period, the strengthening yen will only further aggravate the situation. (ATZ) (Qom / Qom)source: detik.com
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