A Two Year Low in U.S. Trade Deficit

An after effect of Sandy also included an improvement in the employment situation of the U.S. Combined with the boost experienced by the U.S. economy due to increase in exports
 
Nov. 11, 2012 - PRLog -- USD

Decline in Jobless Claims


An after effect of Sandy also included an improvement in the employment situation of the U.S. Combined with the boost experienced by the U.S. economy due to increase in exports, an improvement in the jobless situation has led to the dollar being a more reliable safe haven than the yen. The slowdown in China and the recession hit Euro zone may have decreased the demand for goods exported by America but South and Central America are doing their bit to diminish the trade deficit. The news from the Labor department showed a decrease in the number of people requiring unemployment benefits, which is positive news for the U.S. economy and also the USD.

Euro

Fall In Euro Due To Economy Concerns


Possibility of Spain to deny monetary aid has made trader even more bearish towards the currency sliding the currency to its lowest in two months. It slid to $1.27225 and was trading last at $1.2740. The euro fell to a month low against the yen at 101.64. This weakness in the euro made dollar and yen the safe haven, thus increasing the dollar index to 81. The ECB might have to ease its policies due to the weak states of Germany and Spain. Spain however sold 4.76 billion euros and there was also news on Greece approving the austerity measures in order to avoid a state of bankruptcy. Although any rebounds in the current sliding trend will only be seen as a better opportunity to sell.

Japanese Yen

Rise in Yen after Obama Win


A win for Obama meant stronger yen hence decreasing exports from Honda motor, Toyota motor etc. The U.S. will be looking to ease the monetary policy to increase exports whereas the Bank of Japan will eye on matching its trend so that they are not severely hit. The Japanese Yen is up 0.27% versus the dollar continuing the uptrend in USD/JPY pair. The margin in the competition between the first and the third largest economies of the world is widening due to the increasingly stronger yen that is hurting the Japanese economy as the buyers have to pay more foreign currency to buy products exported by Japan.

Crude Oil

Oil Rises a Bit after the Pitfall on Wednesday


Crude prices had fallen as the interests of traders shifted from the Presidential elections to the ongoing problems of the fiscal cliff and destruction by Sandy. The big fall did provide some buying opportunities on Thursday thus raising the prices a little bit. Brent crude is expected to stay in the middle of $104 to $111 at the end of the week. Another factor further lowering the crude prices is the decrease in crude prices from Saudi Arabia to compete with the U.S. Demand may again take a hit due to the storm’s effects in the East coast of the U.S. which might further bring down the crude prices.

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