The euro rose against the dollar during the first week in a month as the European Central Bank moved to curb the spread of sovereign debt crises and economic data in China and Europe increased the demand for higher yielding assets.
The common currency spent by a ramp earlier in the week, ECB President Jean-Claude Trichet, apply the measures of liquidity and the bank bought bonds to ease the concerns of some countries to pay their debts. Commodity currencies linked gained, with South African rand move more in nine months, as prices of raw materials rose. U.S. consumer confidence is at a maximum of six months, a survey may show next week.
"The ECB was actually very aggressive in the bond market," said Matthew Strauss, senior currency strategist in Toronto at the Royal Bank of Canada. "When the euro was at $ 1.30 level and the market was the decision of whether to push down more or let you correct it, that was enough for the market."
The euro rose 1.3 percent to $ 1.3414 yesterday, the first increase since the five days ended on 05 November, from $ 1.3242 on 26 November. It touched $ 1.2969 on 30 November, the lowest since Sept. 15. The common currency fell 0.6 percent to 110.73 yen, from 111.37.
The yen gained against the dollar for the first time in five weeks, advancing 1.9 percent to 82.53, the strongest level since 15 November. Closed at 84.10 on November 26.
Global growth currencies like the South African rand, the Norwegian krone and the Australian dollar advanced as commodities increased. The Thomson Reuters / Jefferies CRB Index of 19 commodities gained 5 percent in the week, the most since October 2009.
Rand climbs
The rand appreciated by 4 percent, the highest since March, to 6.8760 per dollar. The crown rose 3.4 percent to 5.9523 per dollar and the Australian rose 3 percent to 99.31 U.S. cents.
U.S. stocks won, with 500 of Standard & Poor's up 3 percent, the biggest weekly rise in a month.
The euro began a three-day advance against the dollar on Dec. 1 amid speculation that the ECB will take further action at its meeting tomorrow morning to stop the spread of the debt crisis and the data showed manufacturing expanded in China, U.S. and Europe.
China's factory purchasing managers index rose for a fourth month in November, according to a report of the federation of logistics. European industry expanded at its fastest pace in four months in a factory measuring the euro area, London-based Markit Economics, said while the index of the Institute for Supply Management showed manufacturing factory in the United . UU. consecutive month to speed up 16.
South Korean won had the biggest weekly gain in two months, rising 1.9 percent to 1,138.55 per dollar.
ECB buys bonds
While Trichet declined to announce further action on the debt crisis of Europe, said that the ECB will keep the banks that offer as much money as they want at a fixed interest rate for seven days, one month and three months until the first quarter . It also continued a program of gift vouchers.
The bank bought the debt Irish, Portuguese and Greek in the last two days, according to traders who requested anonymity because the bids are confidential. An ECB spokesman declined comment.
"The purchase of BCE's debt was the most important role in the decline of the euro," said John Doyle, a strategist at the signing in Washington of currency trading at Tempus Consulting Inc. "The underlying themes of European rulers and the banking sector have not disappeared, but we just changed their approach. "
Index dollar falls
The dollar index, which tracks the greenback against the currencies of six major U.S. trading partners, including the euro and the yen fell for the first time in four weeks, losing 1.5 percent to 79.150. The meter has extended its decline Friday as data showed U.S. payrolls grew in November for less than a third of many jobs than forecast. Employers added 39,000 jobs and the unemployment rate jumped unexpectedly to 9.8 percent from 9.6 percent.
The currencies of Canada and Mexico, the boat averaged three-quarters of its exports to the U.S., were the only major non-dollar counterparts up yesterday.
"With Mexico and Canada, who are slaves to the U.S., so today is just a bit of an adjustment," said Andrew Wilkinson, senior market analyst at Interactive Brokers Group LLC in Greenwich, Conn., yesterday. "This did not sink the ship of recovery, only slower."
The Canadian dollar is up 1.7 percent in the week at C $ 1.0039, and the peso advanced 1.2 percent to 12.3369 per dollar.
The index of Thomson Reuters / University of Michigan consumer sentiment rose to 72.5 in December, the highest in six months, according to the median estimate of economists surveyed by us before the data is released on 10 December.
0 comments:
Post a Comment