Dollar Strengthens Against Most Majors
May 21 2012 - 8:52AM
RTTF2
The US dollar advanced against most of its major rivals in early
New York deals Monday on increasing safe-haven bets as weekend
summit of the G8 leading industrialized nations failed to announce
necessary steps to lift the encircling gloom over Greece's debt
woes.
Over the weekend, leaders of the G8 nations that they support
Greece remaining in the Eurozone, while welcoming the ongoing
discussion in Europe on how to generate growth alongside a firm
commitment on fiscal consolidation.
Eurozone leaders are yet to reach consensus on how to solve the
Greece crisis. The country will go to polls on June 17 as no party
gained majority and negotiations to form a coalition government
failed.
Amid fears of a possible Greece exit, another struggling nation
Spain reportedly said that its banks do not need European funding.
Last week, Moody's downgraded 16 Spanish banks, citing rising loan
defaults and restricted funding access.
Spain revised its budget deficit for 2011 to 8.9 percent of
gross domestic product from 8.5 percent, as individual regions
raised their estimates.
The dollar touched the day's peak against the pound, hitting as
high as 1.5783 before holding steady around 8:30 am ET. If the
dollar extends gains, it may re-visit last week's fresh 2-month
high of 1.5735.
House prices in the U.K. remained unchanged in May as the
expiration of stamp duty exemption for first time home buyers and
the eurozone crisis damped demand, a survey by Rightmove
revealed.
Separately, a survey by Markit Economics showed that household
finances in the U.K. deteriorated at the fastest pace in four
months in May.
The US dollar reversed its early Asian session losses against
the currencies of Europe and Switzerland in subsequent trading
hours.
The greenback is presently quoted at 0.9428 against the Swiss
franc and 1.2743 against the euro, up from Asian session's 6-day
lows of 0.9377 and 1.2814, respectively.
Near-term resistance levels for the US currency are seen at
0.9450 against the Swiss franc and 1.2715 against the euro.
Switzerland's consumer confidence improved further between
January and April, a survey by the State Secretariat for Economic
Affairs (SECO) showed today.
The consumer confidence index rose to -8 in January-April from
-19 in three months to January. The latest result was better than
economists' expectations for an improvement to -15.
Eurozone construction output rebounded sharply in March, the
latest figures from Eurostat revealed today. Construction output
jumped 12.4 percent month-on-month in March, recovering from a 10.4
percent slump in February and 0.5 percent fall in January.
Year-on-year, construction output decreased 3.8 percent.
Building construction fell 3.4 percent and civil engineering
decreased 4.9 percent.
The dollar that rose as high as 79.48 against the yen in early
deals Monday consolidated around the 79.25/30 area in New York
morning.
Japan's leading index improved in March, but at a slower than
initially estimated pace, final data published by the Cabinet
Office revealed today.
The leading index rose to 96.4 in March from 96.1 in February.
The reading for March was revised down from 96.6. The index signals
the direction of the economy in the months ahead.
Meanwhile, the coincident index, that measures the current
economic activity, climbed to 96.7, up from last month's 95.2 and
the initial estimate of 96.5.
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