Rebound in the dollar earlier this week did not last long. At the trading session on Tuesday (7 / 6), the dollar must weaken back versus the euro and sterling.
The weakening dollar was first sparked by an article on the website China Finance 40, a strategic studies institute based in Beijing. In that article, Guan Tao, an official authorized to make policy regarding exchange rates, saying that China should be wary of the risk of holding too many dollars that diprediksikannya will continue to weaken.
The article is then removed by reason of what was said Guan Tao is a personal opinion and does not reflect the policy of Chinese government. However, the article has already formed a negative sentiment toward the dollar market. As a result, the dollar fell to new lows in a month versus the euro and fell to new record lows against the Swiss franc in history.
Although the later could rebound shortly, the dollar also continues to weaken again after Federal Reserve Chairman Ben Bernanke's dovish tone of remarks about the U.S. economy. Bernanke said the Federal Reserve should maintain monetary stimulus to promote economic recovery is slow.
Bernanke's statement indicating U.S. interest rates will remain at very low levels for a longer period of time. These conditions contrast with the ECB is expected to be, at least once more, raise interest rates this year.
ECB monetary policy meeting scheduled for Thursday (9 / 6) tomorrow. From this meeting later, market participants expect the ECB President Jean-Claude Trichet will give clues about the possibility of rising interest rates at next meeting scheduled next July.
Against the dollar, the euro closed at around 1.4684 in late trading session on Tuesday, rose about 0.7 percent from opening levels. Earlier, the euro had recorded a new high within 1 month in the range of 1.4695 against the dollar.
Also add to the positive sentiment for the euro is Trichet's statement regarding the debt crisis in Greece. Trichet yesterday expressed optimism that Greece will avoid the possibility of debt restructuring during the government's consistent with his reforms.
Meanwhile, the dollar could continue to weaken monitored until 0.8325 against the Swiss franc, the lowest in history. However, at the end of the session, the dollar managed to record a gain of 0.2 percent to close at 0.8367.
While versus £, the dollar traded down 0.5 percent at 1.6438 at the end of the session. The strengthening of prudential pounds reflect market participants ahead of the announcement of interest rates The Bank of England (BoE) are also scheduled next Thursday. (ATZ)
Askap Futures - detikFinance
Tuesday, June 7, 2011
Meeting ahead of the ECB and the BoE, the Euro and Pound Stronger
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