Wed 1st Dec: Everyday is a new peak for majors; data ignored
With no major correction in sight, the dollar was hammered again especially with cable giving a ‘sterling’ performance reaching a high of 1.9127.
The rapid moves in cable was accelerated by comments from the BoE Governor Mervyn King, who expressed comfort with the currency strength and ready to shoulder the burden of forex adjustment along with Eurozone.
Elsewhere, robust consumer spending during the third quarter helped the U.S. economy advance faster than expected but the inflation was the tamest in decades with PCE index rising by a mild 0.7%. The US GDP grew at 3.9% in Q3 (forecast: 3.7%).
But OECD had a word of caution for the growth outlook for 2005 being marred by high-energy prices. The Conference Board also indicated a soft patch ahead as consumer confidence slid to an eight-month low of 90.5 in November (previous 92.9) with “job scarcity” being the chief concern despite strong economic growth.
Consumer spending (that accounts for more than 2/3rd of the US economy), grew by 5.1%, more than 3 times the 1.6% notched in Q2.
The Chicago PMI, a business barometer that includes the indices for hiring and new orders (among others), eased to 65.2 from 68.5 in October.
The slew of mixed data from the US was no balm for the dollar, though it recovered slightly from a record low of $1.3334 against Euro.
The ECB President Trichet hinted at eventual rate hikes, feigning nonchalance at Euro’s climb.
The only hope for the dollar temporarily would be an exceptional payroll data for the 2nd consecutive month this Friday...
The rapid moves in cable was accelerated by comments from the BoE Governor Mervyn King, who expressed comfort with the currency strength and ready to shoulder the burden of forex adjustment along with Eurozone.
Elsewhere, robust consumer spending during the third quarter helped the U.S. economy advance faster than expected but the inflation was the tamest in decades with PCE index rising by a mild 0.7%. The US GDP grew at 3.9% in Q3 (forecast: 3.7%).
But OECD had a word of caution for the growth outlook for 2005 being marred by high-energy prices. The Conference Board also indicated a soft patch ahead as consumer confidence slid to an eight-month low of 90.5 in November (previous 92.9) with “job scarcity” being the chief concern despite strong economic growth.
Consumer spending (that accounts for more than 2/3rd of the US economy), grew by 5.1%, more than 3 times the 1.6% notched in Q2.
The Chicago PMI, a business barometer that includes the indices for hiring and new orders (among others), eased to 65.2 from 68.5 in October.
The slew of mixed data from the US was no balm for the dollar, though it recovered slightly from a record low of $1.3334 against Euro.
The ECB President Trichet hinted at eventual rate hikes, feigning nonchalance at Euro’s climb.
The only hope for the dollar temporarily would be an exceptional payroll data for the 2nd consecutive month this Friday...
posted by Wise Money @ 9:59 AM
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