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Thursday, July 29, 2010

Dollar Declines vs. Yen as Durable Goods Orders Unexpectedly Fell

US DollarThe�U.S. dollar fell today against the�Japanese yen after the�report today showed that the�orders for�the�U.S. durable goods fell unexpectedly in�June, fueling the�concern for�the�economic recovery and�spurring the�investors to�turn to�the�safety of�Japan�s currency. The�EUR/USD moves up and�down today after it closed yesterday near its opening level.

Durable goods orders declined for�the�second consecutive month, falling by�1.0 percent in�June after dropping 0.8 percent in�May. The�impact of�this report was even more significant as�the�market participants anticipated the�growth, not another month of�decline. The�unfavorable economic data outweighed the�better than expected corporate earning, causing the�Standard & Poor�s 500 Index drop by�0.5 percent. The�Stoxx Europe 600 Index was down 0.4 percent.

Ben Bernanke, the�Chairman of�the�United States Federal Reserve, said on�July 21st that �the�economic outlook remains unusually uncertain�. The�data from the�U.S. definitely added to�the�risk aversion sentiment on�the�markets, increasing the�appeal of�the�yen.

USD/JPY traded near 87.67 as�of�16:27 GMT today after opening at�87.90. EUR/USD near 1.2995 close to�the�opening level of�1.2996.

If you want to�comment on�the�U.S. dollar�s recent action or�have any questions regarding this currency, please, feel free to�reply below.

Earlier News About the U.S. Dollar:

This entry was posted on Wednesday, July 28th, 2010 at 6:27 pm and is filed under U.S. Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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