28 August, 2013
Escalating conflict around Syria led to the growth of defensive assets such as the yen, franc and gold; and to escaping from risky currencies such as AUD, NZD and also currencies of developing countries. Daily decrease of the euro Vs the yen on Tuesday turned out the lowest for past eight weeks. The dollar also lost about 1.5% Vs yen having reached the lowest level against Japanese currency for seven days. Swiss franc took the second honorable place in Tuesday leaders rating.
U.S. Secretary of State, John Kerry said on Monday that there was an incontestable evidence of using chemical weapon by Syrian authorities against the rebels, which may serve a motive for military intervention into the country. According to some reports a military operation against Syria may start on Thursday already. The Pentagon has announced its readiness to the military operation in Syria.
The dollar fell on Tuesday against most major currencies except AUD and NZD having no reaction towards US Consumer Confidence growth while it was expected to drop. US Consumer Confidence rose up to 81.5 p. in August Vs 79 p. Consensus. Prior month reading was revised upwards from 80.3 p. to 81 p.
Richmond Fed Manufacturing Index also maintained to +14 in August Vs July reading -11, which has become the best result since April, 2012.
The euro also ignored at first good business confidence statistics in Germany and decreased but then recovered that loss. IFO Business Climate grew to its high for 16 months – 107.5 p. while a growth to 107 p. was expected. The index has been growing for four months in a row. Current Assessment has risen to 112 p. from 110.1 p. in July. IFO Expectations also exceeded the forecast having grown to 103.3 p. against 102.4 p. prior month.
On Tuesday March, 18 the US dollar was traded mixed before the announcement of 2-days FOMC Meeting on Wednesday. The US dollar increased vs. the pound sterling and the Canadian dollar, but decreased vs. the yen...
On Monday March, 17 the US dollar was traded mixed amid controversial statistics in the USA. The US dollar increased vs. the yen, but decreased vs. major commodity currencies...
On Friday March, 14 the US dollar decreased vs. the yen. The euro, and the pound sterling, but slightly increased vs. major commodity currencies having lost 0.2% to the dollar index amid the US Consumer Confidence decrease to 4-months low...
On Thursday March, 13 the US dollar increased vs. the euro, but decreased vs. the yen and major commodity currencies amid strong US data. The euro dropped after Draghi
On Wednesday the US dollar increased vs. the Canadian dollar and the yen amid finished meetings of the Bank of Canada and Japan...
On Monday the US dollar was traded with fall Vs the most major currencies after the release of weak Non-Farm Payrolls, but rose Vs the pound, and almost didn
This Monday the US dollar was traded with slight decrease Vs most major currencies amid weak US macro statistic data. The data of consumer confidence and personal income appeared to be worse than expected...
The US dollar fell slightly on Monday Vs the euro and the yen and almost did not change Vs the pound and commodity currencies amid contradictory statistics...
The US dollar was traded downwards on Tuesday Vs most major currencies before the FOMC meeting next week where a decision on QE tapering may be made but anyway it will be probably small, which is unlikely to support the dollar...