London Euro slumped back against the U.S. dollar on Monday, as investors adjust positions ahead of Federal Reserve meeting, which some believe could announce new measures to boost the sluggish recovery.Dealers said the euro rose in early trading very strongly supported by the German trade figures which show Europe’s economic giant will help drive growth across the region.As the day develops, markets anticipate that the Fed could announce new stimulus steps in a meeting on Tuesday which will be positive for the dollar with the increase in U.S. economic prospects.
However, choppy trade with investors reluctant to make big commitments awaiting the Fed’s statement after the closely watched U.S. jobs report on Friday is much worse than expected.In late trading in London, the euro was at 1.3236 dollars, the highest in the early retreat of around 1.3283 dollars, down from 1.3276 dollars late Friday in New York.
Against the Japanese yen, the dollar is stronger at 85.86 yen from 85.48 yen on Friday.Michael Hewson of CMC Markets in London said the attention of everyone there at the Fed.”The results that will dominate this week’s sentiment What will become of certain records would be a tone of language used in the statement of work, especially after the data is weaker than expected on Friday,” said Hewson.Forex.com said Jane Foley of choppy trade “as the market grappled with the possibility of facing the Federal Reserve.”,”Payrolls Friday may have been disappointing, but the market still was not sure because if the data illustrate a major slowdown in U.S. economic sukup” which will prompt the Fed to take new action, he said.
With interest rates near zero percent, analysts had suggested the Fed could mempertimbangkankebijakan based monetary stimulus, including a new pumping money directly into the system to increase the demand for credit.Earlier, Germany’s second largest exporter in the world after China, said exports in June surged 28.5 percent to 86.5 billion euros (115 billion dollars), the highest level since October 2008.
Meanwhile, imports surged 31.7 percent to reach a new record of 72.4 billion euros, meaning that the German trade partners also work well.”This has increased the possibility of Germany’s economy grew faster in the second quarter from the previous assumptions,” said Commerzbank analyst, Simon Junker.In London trading, the euro changed hands at 1.3236 dollars against 1.3276 dollars on Friday, at 113.65 yen (113.50), 0.8297 British pounds (0.8326) and 1.3851 Swiss francs (1, 3788).Dollar stood at 85.86 yen (85.48) and 1.0466 Swiss francs (1.0378). The pound was at 1.5951 dollars (1.5941).On the London Bullion Market, gold prices slid to 1203 dollars per ounce from 1207.75 dollars per ounce on Friday. ( AFP) –
Santosamaru 