The US dollar hit multi-decade lows on a trade-weighted basis, with the Euro at all-time highs and the Canadian dollar strongly past parity against its US namesake. Traders asked themselves whether we will see an end to protracted greenback weakness, but early signs suggest that the dollar may fall further before setting any meaningful lows. Continued disappointments in economic data and overwhelming dollar-bearishness have thus far prevented a worthwhile rebound.
Continued calls for a top on the Euro have fallen on deaf ears, with the single currency setting fresh record-highs of $1.4247 through the New York afternoon session. Persistent dollar selling pushed the trade-weighted Dollar Index to its lowest in 15 years, with the British Pound likewise rallying an impressive 160 points to $2.0435. The downtrodden Japanese Yen remained sold against most foreign counterparts, but the dollar nonetheless shed ¥0.85 to ¥114.76.
Morning US economic data only intensified dollar selling pressure, with University of Michigan Consumer Confidence figures and Personal Income results failing to inspire confidence in the greenback. A positive surprise in Personal Spending was largely offset a slightly weaker-than-forecast Income measure. Consumption grew by 0.6 percent through August, matching its fastest rate of growth since April. Yet Income growth decelerated to 0.3 percent through the same period?pushing the Savings rate to a paltry 0.7 percent. Given overall fears of growing consumer debt, such a result will hardly improve sentiment on the future of lending market performance. Yet one month is hardly the signal of a new trend. July's 0.9 percent savings rate had matched February's highs of 0.9 percent.
source: http://www.forexfactory.com
Tags: forex,foreigne exchange,currency,euro,usd
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