The euro appreciated vis-à-vis the U.S. dollar on Thursday as the single currency tested offers around the US$ 1.4455 level and was supported around the $1.4255 level. The common currency gained ground as traders reacted to positive gains in U.S. equity markets on the first trading day of the year. The common currency gained 2.52% in 2009. Data to be released in the U.S. tomorrow include December ISM manufacturing data and November construction spending data followed by November factory orders data on Wednesday. The all-important U.S. December non-farm payrolls data will be released on Friday and dealers are curious to see if the recent trend of fewer job losses will continue. Federal Reserve Vice Chairman Kohn said there is “no shortage” of tools at the Fed’s disposal to withdraw monetary stimulus. Kohn noted “the appropriate use and sequencing of these tools is under active discussion by the FOMC.” Some Fed-watchers believe the Fed will announce plans to sell small amounts of bonds and other assets from its balance sheet. Other Fed-watchers believe the Fed may be forced to expand some of its monetary stimulus in 2010. In eurozone news, data released in the eurozone today saw the EMU-16 manufacturing PMI rise to a 21-month high of 51.6 in December from November’s print of 51.2 and this also propelled the common currency higher. Orders and output improved as did performance in the French market and this adds to the view the eurozone manufacturing sector will continue to improve in 2010. Germany’s manufacturing PMI reading improved to 52.7 from 52.4. Other data released today saw the EMU-16 December Sentix investor confidence index improve to -3.7 from -5.5 in November. Dealers are paying close attention to the fiscal situation in Greece where European Central Bank and European Commission officials will visit on Wednesday. Greece is planning to reduce its fiscal deficit to 8.7% of gross domestic product in 2010, still sharply above the limits imposed by the European Union. Greece’s credit ratings were downgraded in December on account of a deterioration in the country’s fiscal position. Euro bids are cited around the US$ 1.3885 level.
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those who can, do. those who cant, talk about those who can
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dreams do come true.
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Trade on your own risk
Plan your trade&trade your plan dont be a
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dreams do come true.
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They think they are smarter than I am.
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