Stock:
Symbol Lookup
Register | Login
...
History
...
...

Pre Market | Dow Jones | Gold | Newsletters | Learn


Forex Market Update: Improving U.S. Economic Outlook Boosts Dollar

Thursday, March 14, 2013 8:37 AM
The U.S. dollar, which remained under pressure for many months, has rebounded strongly against all major traded currencies in the current year. While significantly improving U.S. economic macroeconomic environment ( as reflected by barrage of better-than-expected economic indicators) has been the key factor behind why global investors are increasing their exposure to “Almighty Dollar”, decline in Japanese yen in the wake of monetary easing and weakness in the Sterling owing to stagnating economy of the U.K. is also propelling the greenback. The yen traded at a 3-½ year low against the dollar earlier this week before recovering somewhat. Just last week, the U.S. dollar index traded to seven month high against major rival currencies. Earlier this week (March 12), the greenback hit 2 ½ year high against the sterling after a data release showed that U.K’s manufacturing output in January contracted more-than-expected. On Wednesday, the dollar received more boost after the Commerce Department’s data showed that retail sales rose at a fastest pace since September 2012 in February. Euro meanwhile sagged against the dollar on Wednesday after euro zone’s industrial output showed more-than-expected contraction in January. A data provided by the Wall Street Journal showed that the WSJ Dollar Index, a gauge on U.S. unit’s performance against a basket of seven most traded currencies, has climbed about 5% so far this year. On Wednesday, it rose 0.3% following retail sales data release. Meanwhile, analysts at UBS bank forecast the U.S. dollar will be the best-performing currency in 2013. According to UBS, the Federal Reserve might feel the need to pause its ongoing $85 billion worth monthly bond purchase program amid significantly improving U.S. economy. Nevertheless, analysts are worried that a stronger dollar will put pressure on the corporate earnings. “The stronger dollar definitely hurt us, everything we made outside the U.S. got translated into fewer dollars,” said Dennis Zeitler, chief financial officer of Mine Safety Appliances Co, according to the Wall Street Journal.  
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2014 the year you get RICH!

Latest Headlines

Gucci's first-quarter comparable sales up 0.3 percentGucci's first-quarter comparable sales up 0.3 percent
PARIS (Reuters) - Gucci`s sales growth remained sluggish in the first three months of the year, hit in part by the brand`s upmarket repositioning and the lost sales resulting from the clean-up of its ...
U.S. FCC says new Internet rules will maintain transparency goalsU.S. FCC says new Internet rules will maintain transparency goals
NEW YORK (Reuters) - New rules on "net neutrality" are expected to allow Internet providers to negotiate agreements with content providers on the delivery of traffic to users as long as the deals they...
U.S. trade bank chief warns lawmaker 'political games' threaten exportsU.S. trade bank chief warns lawmaker 'political games' threaten exports
WASHINGTON (Reuters) - U.S. lawmakers will only hurt American exports and jobs by playing "political games" that threaten to shut down the U.S. Export-Import Bank, the bank`s president said on Thursda...
Apple's sales boom in communist VietnamApple's sales boom in communist Vietnam
HANOI (Reuters) - Communist Vietnam is suddenly Apple Inc`s hottest market after sales there tripled in its fiscal first half, a growth rate five times faster than in India where it is spending heav...
Nasdaq not yet subpoenaed in N.Y. high frequency trading probe: CEONasdaq not yet subpoenaed in N.Y. high frequency trading probe: CEO
NEW YORK (Reuters) - Nasdaq OMX Group Inc has not to date received a subpoena from the New York attorney general as part of its industrywide probe into allegedly unfair technological advantages on Wal...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.