Thursday, 9 April 2009

US dollar trades mixed against the euro

The dollar strengthened against the euro yesterday before weakening off last night following the release of the Federal Open Committee’s minutes from their previous meeting in March. The minutes indicated that the members were almost unanimous in stating that economic conditions had deteriorated relative to their expectations at the time of the January meeting. The members also stated that a fall in foreign economic activity was of particular importance, as this was having an adverse effect on US exports.

Anxiety over upcoming quarterly results and company forecasts have affected the market this week, resulting in a fall in the Dow Jones industrials with a nearly 3 percent loss over the past two days. Additionally, the Commerce Department announced Wednesday that wholesale inventories fell by 1.5 percent in February, the highest on record and more than double analysts' expectations.

In the eurozone, Germany's Federal Statistical Office announced exports to countries in the 27-nation European Union fell 24.4 percent, while exports to non-EU countries dropped by 20.6 percent.

In the eurozone, Germany will be announcing their Industrial Production figures at 11.00 BST whilst in the US Jobless Claims, Import Price Index and particularly important Trade Balance data will be released at 13.30 BST. Additionally, the Bank of England’s interest rate decision is due this afternoon.

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