Weak US housing data causes high yielding currencies to fall
Sterling weakened against the US Dollar and Euro in overnight trade on the back of further concerns in the global equity market caused by weak U.S. housing data and the further easing of market interest in carry trades.
The decreasing investor interest in carry trades put pressure again on other higher-yielding currencies, with notably the New Zealand Dollar falling sharply against the US Dollar and the Yen.
The Australian Dollar also dropped again this morning with the weak housing data and carry trade issues continuing to make its mark on the majority of these types of currencies.
German IFO for August was higher than expected this morning even though it showed a slight drop to 105.8; this is down 3 points from the previous report for July. However this said, the outlook for the near future is still positive with IFO president Hans-Werner Sinn commenting "it is still marked by optimism, albeit somewhat weaker". The euro strengthened gradually following this report.
Oil rose in early trading, supported by tight US gasoline supplies and expectations a weekly report is expected to show motor fuel supplies have been squeezed again across the Atlantic. A US report is likely to show that gasoline stocks fell unexpectedly by 5.7 mln barrels last week.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
The decreasing investor interest in carry trades put pressure again on other higher-yielding currencies, with notably the New Zealand Dollar falling sharply against the US Dollar and the Yen.
The Australian Dollar also dropped again this morning with the weak housing data and carry trade issues continuing to make its mark on the majority of these types of currencies.
German IFO for August was higher than expected this morning even though it showed a slight drop to 105.8; this is down 3 points from the previous report for July. However this said, the outlook for the near future is still positive with IFO president Hans-Werner Sinn commenting "it is still marked by optimism, albeit somewhat weaker". The euro strengthened gradually following this report.
Oil rose in early trading, supported by tight US gasoline supplies and expectations a weekly report is expected to show motor fuel supplies have been squeezed again across the Atlantic. A US report is likely to show that gasoline stocks fell unexpectedly by 5.7 mln barrels last week.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: currency-converter, Weak Sterling
posted by Drs Search @ 8:26 AM
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