The USD strengthens after the morning trades
The morning forex trades in Sydney resulted in strengthening the United States currency in relation to other currencies. The USD maintained the gains it has reached throughout the night after the opinion that it will be oversold this month appeared. Moreover such factors as the growth of the crude oil prices and announcements made by the San Francisco Federal Reserve Bank Chairman Janet Yellen also contributed to the growth of the USD.
According to the last trading data the USD was at the 104.26 yen and the Euro at the $1.5685. The Federal Reserve interest rate cuts and changes in liquidity are expected to be sufficient to contribution to the growth until the end of the year.
However the crude oil prices decreased due to such factors as profit taking and opinion that the fuel situation in the Asian countries can cause the slowdown of the economic growth in Asia.
As for the Euro the European economic data also contributed to the growth of the euro. The euro decreased to the point of $1.5700 after the fall of the French business confidence level and the fall of the Germany GfK consumer confidence level.
According to the forex analyst at Thomson IFR Market – John Noonan the correction of the crude oil prices was expected and in case it will occur this will lead to the decrease of the stagflation concerns in the US and the growth of the USD.
The low oil prices should contribute to the growth of the Asian currencies. These currencies experienced selling pressures caused by the opinion that the fuel prices will contribute to the growth of the economies of those countries and the export level of the US.
According to the Ian Copsey a senior financial analyst at Global Forex Trading the euro at the moment remains low and the USD further fate remains unclear. The fall of the French consumer confidence was followed by the fall of the US Consumer confidence index to the level of 16 year old.
