The dollar rose to a seven-week high against the euro
Thursday, after the European Central Bank chief dented expectations of an imminent interest-rate hike in the euro zone. The European central bank Thursday left its dominant types of interest without changes in 3.5%, according to the awaited thing. Jean-Claude Trichet, head of the Frankfurt-based central bank, said that the near supervision of progresses is necessary, but prisoner just before using of the phrase "monitoring" a phrase in the past has indicated a rise of the tariff in the subsequent meeting. Trichet also said that the bank sees loss risks the risks of the growth and upside the inflation. To see complete history.
"The market still is appraising in rise of the tariff of a 0,25 points of the percentage] in the first trimester, but before the today meeting, many waited for the rise would come in February and now it appears that it is not going to be until march," Simpson said to Ronald, director of handling of the global analysis of modernity in the economy of the action of the company/signature of the investigation.
In New York that negotiated, euro was stopped in $1.2891, was compared with the $1,2934 last Wednesdays, after falling to $1,2883, the lowest level from the 22 Nov. The dollar was quoted in 120.32 Yens, compared with 119,62 Yens, later previous to touch 120,63 Yens, the level upper from the 12 Dic of 2005.
The pound negotiated in $1.9452, compared with $1,9323, after reuniting so much as plus the one of 1% to touch to an overflow intraday in $1.9536. Sterling also jumped 1,1% against euro and 1,4% against the Yens.
The dollar changed the hands in 1.2487 francs Swiss, compared with 1,2467 francs. Euro brought 155,13 Yens, compared with 154,75 Yens. The modernity of the E.E.U.U also psychologically important level 120 met to 13 months high against the Yens, breaking, after the data demonstrated that the economic indicators that they went away of Japan fell in November and whereas the Japanese politicians impelled the bank of Japan not to raise to types of interest the next week.
Meanwhile, the British pound met shrewdly, striking 18 months high against euro, after the bank of England surprised the market with an increase of the fourth-point in its type of dominant interest 5,25%. The BRITISH dominant types of interest now are in he himself level which tariffs of the E.E.U.U. Recovery of the dollar the modernity of the E.E.U.U., which it declined 11,5% against euro in 2006, has bounced pleasant in the past few sessions, winning near 2,3% against single modernity until now this year. "The dollar done very well from the beginning of the year," said to Simpson. "If the data of the E.E.U.U continue coming inside in quite good levels, it will not be also long before we see the expectations for the rises of the tariff that begin to become more in the market advanced in the year."
"We have a ECB less hawkish this morning and perspective perhaps of a Fed more hawkish, that is giving returned to the situation around absolutely considerably in the front of the type of interest," he said, adding that the economists in the economy of the action are counting on a rise of the tariff in the E.E.U.U more advanced in the year. The financial market now does not consider any occasion of a type of interest cut through first trimester, and only one occasion of 28% of a cut with first half of 2007, the market on credit of the federal bottoms demonstrated.
The last Wednesday, the probabilities that the federal reserve at night cuts its target for the tariffs until 5% from the 5,25% were stopped in 4% with the meeting of policy of the Fed in last march and 44% with the meeting of behind schedule-June.
The dollar also drew the aid of a report Thursday of the government who demonstrated that the unemployed demands fell of the E.E.U.U the last week more than foretold, suggesting additional stability in markets of work of the E.E.U.U. The number of initial demands in the conclusion the 6 Ene of the week lowered 26,000 to 299,000, the lowest level from last July, the work department this.
The prognosis of the consensus of economists was a reading of 320.000. Greenback can extend its recent increases that Friday if the data of the sales to by minor of the E.E.U.U make fulfill "the subject of the lead demand consuming that cushions economic the smooth landing," Ashraf Laidi, main currency analyst in CMC said the markets in New York. The sales to by minor probably increased in a 0,7% of December after an increase of 1% in November, according to the economists examined by MarketWatch. Except the healthy sales car, the sales to by minor rose probably a 0,5% after increase 1,1% in November. European tariffs the ECB, that fixes types of interest to the 13 countries -- extending from Germany to Slovenia -- that the use euro, has raised to types of interest six times in the 14 last months.
"Closely together the supervision of all the progresses is of the essence to assure that the risks to appraise stability do not materialize," of Trichet said in a press conference immediately after the decision. The market "was disappointed that the ECB does not use the vigilant word" and "it did not trust to a synchronization of the rise of the tariff," specially after the unexpected rise of the tariff of the United Kingdom, said to Matthew Strauss, greater strategist of modernity in the markets of RBC capitals. "He is negative for euro."
22 Comments:
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It is not a good news if Dollar rises. There is a great trade imbalance. America is only importing and not exporting. When dollar was cheap Europeans were visting USA and spending money. If Dollar starts rising the tourists will stop visiting USA and stop buying. I was hoping some european Businesses will rent my pixels and make my life easier. With dollar rising that dream is ended. Atleast for now.
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I distinctly remember commenting on a similar article a month ago. It said Dollar arose for so many months or so many weeks. This one says Dollar arose for so many weeks. That is a bad news. The europeans were flocking to USA to buy American things because of week dollar and strong Pound. I hope Pound is not rising along with Euro. So the europeans can sell their items in USA now. I hope they rent the pixels herein> to advertise their products to take advantage of stromng dollar and week euro before things reverse.
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