hr: Currency

Photo Credit: Manuel Delgado Tenorio

The US dollar advanced two months in a row versus the euro, mainly because of soaring US stocks that brought signs of better economic conditions, boosting investor confidence and making US assets more attractive.

The US dollar greatly improved against its major counterparts after a government report revealed that personal income in the US has strengthened tremendously in April beyond analysts’ expectations. Incomes improved by 0.2 percent, partly because of the government’s tax rebates that came after an increase by 0.4 percent the previous month.

Another reason why the dollar has soared against the euro lately is the sudden and unexpected drop in Germany’s retail sales in April. Germany, by the way, is Europe’s biggest economy.

The US dollar meanwhile traded high against the yen on speculation that the Federal Reserve will be hiking interest rates late in 2008.

“The idea that the Fed will continue to cut rates has been completely put to bed and the market is now flirting with the idea of a rate hike. That has given the dollar a boost,” according to head of international currency strategy Alan Ruskin, RBS Greenwich Capital Markets, Connecticut.

The US economy improved at a 0.9 percent annual pace the previous quarter, higher than April 30’s 0.6 percent estimate by the Commerce Department, according to government report. Except for transportation equipment, there’s also been a 2.5 percent rise in US durable goods orders in April.

TradingSolutions:
Financial analysis and investment software that combines technical analysis with neural network and genetic algorithms.

Commercial Forex Trading Secrets Revealed

Play to Win $50,000 - Fantasy Stock Trading Game

Forex Trading Courses