Dollar Decline Stalls | IFCM
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Dollar Decline Stalls - 2.5.2011

Asian stocks were mixed on Monday. Japanese Nikkei Stock Average rose by 1.57%, supported after President Obama said Osama Bin Laden has been killed in a US operation. Crude oil as well as Japanese yen declined. Crude oil for June delivery fell from 114.14 dollars per barrel to 112.40 by the end of Asian trading session. Pair EUR/USD was traded 1.4762-1.4863 this morning and pair USD/JPY recovered from 80.99 to 81.68. US Dollar On Friday government reports showed consumer spending in the US rose in March due to higher food and fuel prices. Personal spending advanced 0.6% after a revised 0.9% gain in February beating economists’ expectations. However, US growth decelerated to a 1.8% annual speed in the first quarter of 2011, from 3.1% three months earlier. Both slowing growth pace and the widening interest-rate gap between America and other countries led to the US currency’s worst performance among the majors in the past three months. Euro The euro is traded near 16 months high against the dollar due to speculation the European Central Bank will signal after its meeting on Thursday it will keep tightening policy. Producer prices in the euro region added 6.6% in March from a year earlier, according to expectation. Official data will be released tomorrow. ECB policy makers raised the benchmark rate by 25 points last month to 1.25%. Another move may come as soon as June analysts predict. Canadian Dollar The Canadian currency strengthened against the US dollar counterpart for a second week and touched its highest level since November 2007 today – 0.9445 amid expectations the Bank of Canada will raise rates sooner than the Fed. The economy grew 2.9% in February from the same month a year earlier, a report showed last Friday. This week labor market data will be released and according to expectations the economy may have added 20000 jobs in April. Australian Dollar Australian Treasurer Swan said the economy will create 500000 new jobs within two years, reducing the nation’s unemployment rate to 4.5%. The country’s jobless rate declined in March to 4.9% from 5%, matching a two-year low, reached in December 2010, as the number of employed advanced by 37800. Pair AUD/USD touched its new high this morning – 1.1010.
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