The USD gains on Euro/Others in Advance of key american Labor Data

Earlier gains in the common currency Euro were given up against the U.S. Dollar in Asian trading yesterday following a rise in short covering.

The U.S. Dollar also made gains against Japanese Yen and Swiss Franc in advance of labor data from the US, which will be released later this week. It is anticipated that the figures will show improvements over the previous period.

At 1:13 P.m. (JST) in Tokyo, versus the single currency Euro, the USD traded at 1.3440 $, earlier the Euro had been trading at 1.3530 $. Versus the Japanese Yen, the USD was trading at 92.66 Yen , a 1% increase from Friday's late trade in New York, against the Swiss Franc, the USD rose nearly. 8% to trade at 1.0677 Swiss Framc.

On Friday this week, non-frams payroll data from the U.S. Department of Labor will be released. A poll of analysts predicts that as month increase since March of 2007 , but only the second time there has been growth in the work sector late 2007, when recession began.

One strategist suggested, however, that the rise this month is only a rebound from February's dismal numbers which were attributed to the blizzards that swepts through large portions of the United States.

U.S. Dollar Steadies versus Euro on Fed Meeting Outcome

In Tokyo trading, the U.S. Dollar approached a multi-month high versus the single currency Euro in advance of the Federal Reserve statement which will be issued at the conclusion of their policy meeting later today. Investors are hoping the statement will provide clues as to when the administration will start withdrawing its current loose monetary policy. Speculation abounds that the improved economic outlook for the United States will compel the Federal Reserve to make changes to their policy sooner rather than later. Recently, Ben Bernanke, the Chairman of the Federal Reserve Bank, in a response to a query made by Republic Senator Jim Cummings of Kentucky, stated that the U.S. economy was not operating to its fullest potential, thus the risk of inflation was unlikely.
As reported at 2:42 pm (JST) in Tokyo, the U.S. Dollar traded at $1.4530, following a nearly 1% gain in yesterday’s trading session to touch on $1.4503, the highest trade in nearly 2½ months. The Euro was under pressure yesterday on continuing investor concerns over central bank policies in the Euro zone, and recent data suggests that regional growth remains weak. Later today, Norway and Sweden’s central banks will public announce any changes to their currency monetary policy.
This topic source: dailyforex.com

U.S. Dollar Gains on Aussie for 6th Straight Session

During the growing investor demand for the U.S. Dollar, the Australian Dollar slipped in Asian trading today, closing lower for the 6th straight trading session and striking a new 11-week low. As reported at 5:00 p.m. (AEDT) in Sydney, the Australian Dollar traded at $0.8759; on Tuesday, it closed at $0.8794. The greenback strengthened in advance of the release of key economic data from the United States, including consumer spending, new home sales and personal income. Although GDP figures released yesterday showed that the American economy’s growth was at a rate less than forecast by analysts, it was enough to give market players confidence about the overall prospect of the U.S. recovery.
Although the U.S. Dollar rises , specifically versus the Aussie currency, further gains will likely be harder to achieve. According to one currency strategist in Sydney, the gains in the U.S. currency are more likely attributed to unwinding of short U.S. Dollar positions than to investor confidence. Since the of mid-November, the Australian Dollar has lost nearly 7% versus the greenback; however, it should be noted that the Australian Dollar remains strong versus other major currencies. Analysts suggest that a reversal of the Aussie’s downtrend will likely emerge with the coming of the new year.
From : dailyforex.com

Technical Analysis of EUR USD

EURUSD positive trend remains for this pair, above this barrier buying options are better to look for. However in order to reach new highs for bulls side, 1.5120 barrier needs to be broken. At the moment, bulls have enough confident to extend their current move.

Good News gave the U.S.Dollar a slide

At Tuesday,The Dollar tumbled falling just south of 74.30 on the DXY. The Kiwi was the big winner advancing 1.38% followed by the Pound at 1.03%. Meanwhile the JPY was the only major to lose ground to the Greenback as an emergency meeting of finance minister in Japan was convened to discuss the JPY's continued strength.The Dollar slide was triggered by a wave of positive economic data releases. On the home front, contracts to purchased existing homes jumped 3.7% unexpectedly. ISM figures remained above the critical 50 level. Couple the data releases with positive Black Friday and weekend sales as well as Dubai shoring up its debt facility payments and we had the ingredients for a massive Global Equity Market rally. It will be a quiet Wednesday for economic releases.Oil finished the day up just over a dollar a barrel to 78.37. Gold closed at 1,196.60 up $20 from the day before. In intra-day trading Gold broke 1,200 before retracing, although futures are pointing up this morning so 1,200 should be no barrier today.

The Dubai Debt Worries Spur Investors to Safe-Haven Yen

As reported at 3:31 p.m. (JST) in Tokyo, the Yen traded at 84.82 Yen, the highest point since 1995, before retreating to 86.05 Yen, a .6% rise on the day. The Japanese Yen continues to rise versus the U.S. Dollar, touching on its highest trade in 14 years. It was learned that early in the day on Friday, the Bank of Japan, in conjunction with officials from the government, were inquiring about Dollar/Yen rates with some commercial banks, thus prompting traders to cover their long positions in the Japanese currency.
The Yen also rose broadly against high-yielding currencies following the news of Dubai’s debt problems; specifically two of the country’s flagship corporations sought to delay repayment of their debt. Many investors, who previously looked to the Middle East region as a bastion of investment and capital sourcing, had their confidence shook, and raised concerns over the possibility of massive debt-related problems in the region. This led to investor unwinding of Japanese Yen-funded carry trades to the detriment of high-yielders, including the Australian Dollar, which slipped to 77.88 Yen, a loss of 1.6%, and the single-currency Euro, which fell to 126.95 Yen, a decline of 1.3%.

The Yen Struggles while U.S. Dollar Steadies in the Asian Trading

Lately, Yen struggled while the U.S. Dollar held steady in Asian trading today against high-yielding currencies such as the A.D.( Australian Dollar) and the single currency Euro. Investors’ risk appetite was also boosted by the recent rises in the commodity and stock markets. As reported at 3:09 p.m. (JST) in Tokyo, the Japanese Yen slipped .4% against the U.S. Dollar, trading at 87.00 Yen. The U.S. Dollar Index held at 74.411 .DXY, hovering just above 74.17 .DXY, established last week as a new 16-month low. The high-yielding Australian dollar gained .3% on the U.S. Dollar, to trade at $0.9278 following yesterday’s nearly 1% gain. The Euro also saw gains on the U.S. Dollar and Japanese Yen, trading at $1.5094 and 131.28 Yen, adding on to yesterday’s gains of .5% and 1%, respectively.

Markets will continue to closely follow news from Japan about that government’s efforts to tackle deflationary pressure and avert a recession. Yesterday,the surprise announcement of a new operation aimed at minimizing short term interest rates fell far short of investor expectations. It is expected that the Japanese Government will present a new stimulus package later this week, and Bank of Japan officials said that no policy actions are being ruled out, though they remain cognizant of inflationary risks to their fragile economy if the Yen is allowed to continue its rise.