Forex News Dollar advanced across the board amid lower oil prices, hawkish comments on rates by Philly Fed President Plosser; greenback got early boost after Plosser warned inflationary pressures are "too high", hinting at rate hike; comments sparked losses in US interest rate futures as investors become more convinced that Fed hike could be near; plus dollar also had support from U.S. Treasury Secretary Paulson, who repeated his mantra that strong dollar important for nation's interests. "Those three things (lower oil prices and comments by the Fed official and Paulson) basically hit the market at the same time," said Carl Forcheski, FX strategist at Societe Generale in New York; "Combine that with the fact that the euro had trouble moving higher (in overnight trading) despite weak U.S. company earnings reports...and the stage was set for the dollar to rebound."
Late In New York, EUR/USD 1.5778 vs 1.5898 late Monday, USD/JPY 107.33 vs 106.72, EUR/JPY 169.32 vs 169.67, GBP/USD 1.9912 vs 1.9990, USD/CHF 1.0315 vs 1.0202. Lower oil prices lifted stocks, led by financials and consumer sector; Wachovia surged 27% despite a record 2Q loss, Bank of America +13%, while General Motors +9.4%. Apple fell 2.6% after warning its summer quarter may not live up to Wall Street's hopes. Dow +1.2%, Nasdaq +1.1%. Treasurys dropped on tough inflation talk, recovering equities, prospect of additional supply; 2-year yield +8.2 bp at 2.72%, 10-year +4.5 bp at 4.11%. Nymex August crude fell $3.09 to $127.95/bbl on receding fears over the course of Tropical Storm Dolly, stronger USD; Comex August gold fell $15.20 to $948.50/oz on broad decline in other commodities, lower oil prices.
0 comments:
Post a Comment