The US Dollar rose against most of the higher-yielding currencies, but fell to 2 month lows against the Japanese Yen after economic growth and consumer confidence data suggested a US recovery could be slower and less robust than previously thought. Tuesday saw the US government downgrade their previous 3rd quarter GDP data from 3.5 to 2.5% citing lower than estimated sales and export woes. The revised report in conjunction with the poor consumer confidence data reignited the safe haven allure of both the US Dollar and JPY and reduced the appetite for riskier assets such as stocks and commodity currencies like the Aussie and Canadian Dollars.
At 10:30 PM GMT, the US Dollar was up.05% to the Euro to 1.4967, down .55% to the Japanese Yen to 88.53, up .13% against the British Pound Sterling to 1.6583, up .25% to the Canadian Dollar to 1.0589, up .5% against the Australian Dollar to .9192 and down .12% versus the Swiss Franc to 1.0087.
A lot of focus is on the USD/JPY this week after today. If the pair closes the week at current levels or lower, it would be the lowest weekly close since 1995. These low levels are coinciding with the US 10-year benchmark skating along the key support at the 200-day moving average. A continued sell-off in the USD/JPY could be precipitated if yields continue to drop from here.
Written by Finexo.com