forex trading outlook today Euro Gains Versus Dollar on German Sentiment, Spain’s Bill Sale : The euro rallied from almost an 11- month low against the dollar after an Ifo report showed German business confidence unexpectedly increased and borrowing costs fell at a Spanish bill sale.
The U.S. currency fell against all of its 16 most-traded counterparts tracked by Bloomberg on reduced demand for a refuge. Sweden’s krona and the Australian dollar rallied after central banks signaled they may hold off on cuts in interest rates at the start of 2012. The pound gained as U.K. consumer confidence rose from a record low.
“The Ifo index for Germany certainly surprised to the upside,” said Ulrich Leuchtmann, head of currency strategy at Commerzbank AG in Frankfurt. “This is good news for the euro.”
The 17-nation euro appreciated 0.9 percent to $1.3118 at 8:50 a.m. New York time, after falling to as low as $1.2946 on Dec. 14, the least since Jan. 11. Europe’s shared currency strengthened 0.7 percent to 102.13 yen. The dollar decreased 0.3 percent to 77.83 yen.
The Stoxx Europe 600 Index of equities gained 0.5 percent, and futures on the Standard & Poor’s 500 Index advanced 1.3 percent. Treasury 10-year notes fell, pushing the yield five basis points higher to 1.86 percent.
Aussie Gains
Australia’s dollar rose 1.4 percent to $1.0038 after minutes of the last central bank meeting showed policy makers saw a continued expansion in the domestic economy even as Europe’s debt crisis weighed on global growth. “Solid growth” among trading partners has tempered the need for lower rates, the minutes said.
The krona rallied 1.2 percent to 6.8467 per U.S. dollar as the Riksbank said it may hold borrowing costs steady next year after lowering the seven-day repo rate by a quarter-percentage point to 1.75 percent.
Sterling appreciated 1.2 percent to $1.5682 after a Nationwide Building Society index of sentiment increased to 40 last month from 36 in October, which was the lowest since the lender’s survey began in 2004.
IntercontinentalExchange Inc.’s Dollar Index, a gauge of the greenback against the currencies of six major trading partners, decreased 0.8 percent to 79.720.
German Sentiment
The euro reached a one-week high versus the dollar after the Ifo institute’s business climate index for Germany, based on a survey of 7,000 executives, rose to 107.2 this month from 106.6 in November, boosting optimism that Europe’s largest economy will avoid a recession next year. Economists expected a drop to 106, the median of 36 forecasts in a Bloomberg News survey showed.
Europe’s currency was supported after Spain sold 5.64 billion euros of three-month and six-month bills, exceeding a maximum target of 4.5 billion euros. The average yield on the three-month debt dropped to 1.735 percent, compared with 5.110 percent when the securities were last issued on Nov. 22. European finance ministers yesterday boosted their efforts to counter the region’s debt crisis by pledging extra resources for the International Monetary Fund.
“It’s a slight squeeze higher for all risky currencies after the Spanish auction was better than expected,” said Elsa Lignos, a currency strategist at Royal Bank of Canada in London.
The yen weakened against most its major peers as government documents showed the Finance Ministry plans to raise the issuance limit for bills to fund currency intervention to 195 trillion yen ($2.5 trillion), the first increase since Sept. 30. The currency increased to a post-World War II record of 75.35 yen per dollar on Oct. 31.
The U.S. currency fell against all of its 16 most-traded counterparts tracked by Bloomberg on reduced demand for a refuge. Sweden’s krona and the Australian dollar rallied after central banks signaled they may hold off on cuts in interest rates at the start of 2012. The pound gained as U.K. consumer confidence rose from a record low.
“The Ifo index for Germany certainly surprised to the upside,” said Ulrich Leuchtmann, head of currency strategy at Commerzbank AG in Frankfurt. “This is good news for the euro.”
The 17-nation euro appreciated 0.9 percent to $1.3118 at 8:50 a.m. New York time, after falling to as low as $1.2946 on Dec. 14, the least since Jan. 11. Europe’s shared currency strengthened 0.7 percent to 102.13 yen. The dollar decreased 0.3 percent to 77.83 yen.
The Stoxx Europe 600 Index of equities gained 0.5 percent, and futures on the Standard & Poor’s 500 Index advanced 1.3 percent. Treasury 10-year notes fell, pushing the yield five basis points higher to 1.86 percent.
Aussie Gains
Australia’s dollar rose 1.4 percent to $1.0038 after minutes of the last central bank meeting showed policy makers saw a continued expansion in the domestic economy even as Europe’s debt crisis weighed on global growth. “Solid growth” among trading partners has tempered the need for lower rates, the minutes said.
The krona rallied 1.2 percent to 6.8467 per U.S. dollar as the Riksbank said it may hold borrowing costs steady next year after lowering the seven-day repo rate by a quarter-percentage point to 1.75 percent.
Sterling appreciated 1.2 percent to $1.5682 after a Nationwide Building Society index of sentiment increased to 40 last month from 36 in October, which was the lowest since the lender’s survey began in 2004.
IntercontinentalExchange Inc.’s Dollar Index, a gauge of the greenback against the currencies of six major trading partners, decreased 0.8 percent to 79.720.
German Sentiment
The euro reached a one-week high versus the dollar after the Ifo institute’s business climate index for Germany, based on a survey of 7,000 executives, rose to 107.2 this month from 106.6 in November, boosting optimism that Europe’s largest economy will avoid a recession next year. Economists expected a drop to 106, the median of 36 forecasts in a Bloomberg News survey showed.
Europe’s currency was supported after Spain sold 5.64 billion euros of three-month and six-month bills, exceeding a maximum target of 4.5 billion euros. The average yield on the three-month debt dropped to 1.735 percent, compared with 5.110 percent when the securities were last issued on Nov. 22. European finance ministers yesterday boosted their efforts to counter the region’s debt crisis by pledging extra resources for the International Monetary Fund.
“It’s a slight squeeze higher for all risky currencies after the Spanish auction was better than expected,” said Elsa Lignos, a currency strategist at Royal Bank of Canada in London.
The yen weakened against most its major peers as government documents showed the Finance Ministry plans to raise the issuance limit for bills to fund currency intervention to 195 trillion yen ($2.5 trillion), the first increase since Sept. 30. The currency increased to a post-World War II record of 75.35 yen per dollar on Oct. 31.
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