© All about forex | www.forex-here.com
The United States currency remained at quite high positions in relation to other currencies throughout the morning Forex trades in Sydney as investors considered the duration of the USD being strong. So the USD was traded at 104.74 yen and the Euro – at $1.5654. The gains of the USD were caused by the positive data provided by the durable goods orders report for the April. As for the new orders for the goods related to durable ones decreased only 0.5 percent throughout the April thus showing the outlook for the 1 percent decline was the wrong one.
So the growth of the orders reached 2.5% except of transportation. As for the orders for electrical equipment and appliances they have increased by 27.8 percent that is the biggest increase that has ever been.
Furthermore the US Treasury yields increased thus maintaining the nation’s currency. However, according to John Noonan – a senior forex analyst at Thomson IFR Markets the trend of the USD in quite unclear at the moment as the high oil prices can affect it in a negative way. Therefore the Forex markets are quite perplexed about their current and future moves.
The factors that contributed to the currency pairs recently eased their impact as the markets continue to keep the positions that were gained in previous trades.
The USD was sold off last week because of the growing oil prices that maintained the risks of stagflation. However the further growth of the oil prices on Wednesday has only limited the USD.
According to Noonan the US Treasury markets experts say that the rise of the US yields has only started. Those experts understand that the Federal Reserve will have to increase interest rate until the end if the year and nothing will prevent Fed from these moves.
The forex analyst at Thomson IFR Markets added that the understanding by the foreign exchanges of this matter will lead to the end of the USD recovery.
In this relation a senior financial analyst at Global Forex Trading expressed the opinion that the forex markets now are at the edge of the knife. He has added that the present US economic data looks like stable one meanwhile the European data turns to instability.