The American Dollar over the period of January 7-11 fell under serious pressure following the ECB President’s Mario Draghi’s announcement about the presence of serious positive shifts in the Eurozone’s financial sector. He stressed the profitability decrease on a number of the problematic countries’ bonds as well as the increase of deposits on accounts in the banking systems of Greece, Spain, and Italy. This announcement has provoked a massive sale of the Dollar, being the traditional protective asset, and the increase of demand for instruments related to the economic growth on all of the planets major stock exchanges. Therefore, the Dollar index USDX in the second half of the day on Friday, January 11, lost 1.2% compared to the last week’s closure.
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The coming week will be the first week of the month, traditionally rich in important macroeconomic reports, capable of impacting the US Dollar’s positions, having determined its prospects for the entire December. On Monday, December 3 (15:00 GMT), The Supply Management Institute will provide data on the Manager’s Industrial Orders Index and on Wednesday, December 5 (15:00 GMT) an equivalent report on the non-industrial sector will be issued. The apotheosis of the week will be the new jobs and unemployment data by the Labor Statistics Bureau (Friday, December 7, 13:30 GMT), and the day earlier the participants will be following the similar data by ADP Inc. (Thursday, December 6, 13:50 GMT).
The US Dollar for the period of November 26-30 lost its positions as the demand for the economic growth assets persisted on the global financial markets. Over this period, no significant macroeconomic data was released, capable of impacting the currency market, yet the US President Barack Obama and the influential Republican congressmen announced again that the “fiscal gap” negotiations are moving on satisfactory, having expressed confidence that the problem will be solved by the end of 2012.
The main macroeconomic release capable of impacting the Dollar’s positions the coming week can become the report on the durable consumption goods orders (Tuesday, November 27). Despite its impact on the currency market’s participants being traditionally limited, it can provoke movement on the US stock exchanges and the indices dynamics can already, in its turn, considerably move the Dollar’s quotes.
The US Dollar over the period of November 19-23 fell under pressure as investors on the global currency market were expressing a growing demand for assets sensitive to economic growth. Barack Obama’s negotiations with opponents from the Congress on the fiscal gap problem finished successfully. Both sides expressed confidence in its successful solution in the near future although no details have been announced in the media. Nonetheless, on Thursday, November 22, Thanksgiving was celebrated and the following day, Friday, was a short day on stock exchanges. The trading activity on the currency market on these days was low, so the movements observed at the end of the week should be treated with caution. The Dollar index USDX lost 0.7% for the reporting period.