Increased Risk Appetite suppresses Dollar and Yen
DailyForex.com
As reported at 9:17 a.m. (AEST) in Sydney, the U.S. Dollar and the Japanese Yen continued to extend their reported losses of last week during today’s trading following the release of improved global economic data. On Friday, manufacturing data released in the United States suggested that that sector was finally coming out of the massive slowdown; other reports were indicative that American consumers were more optimistic about the U.S. economy. The U.S. Dollar rose to 99.42 Yen, a slight increase from Friday’s late trading of 99.29 Yen in New York. As a result, investors are once again hungry for risk in the hope and anticipation that the worst is behind us, and that the global economies will continue to show improvement. According to one forex strategist in the U.K., investor confidence is showing positive momentum. Higher yielding currencies, such as the New Zealand and Australian Dollars, came close to touching on recently hit highs, as investors move away from safe-haven assets. The New Zealand Dollar rose to $0.5730, up from Friday’s trade of $0.5697; meanwhile the Australian Dollar saw a slight gain, trading at $0.7332, up slightly from $0.7308 on Friday. Trading in Asia will continue to be thin until Japan reopens its markets; closed currently for the Golden Week holiday.