Tuesday, August 4, 2009

Forex - Dollar trades near one-month low as Oil and Gold prices gained

The Dollar traded near Thursday one-month low against the Euro last Friday on speculation US reports tomorrow will show a slump in home prices accelerated and consumers were the most pessimistic in at least 15 years.
Last week, the US currency fell versus the Canadian Dollar and held near a 25-year low against the Australian Dollar after Oil and Gold prices gained. European currencies and the Australian dollar are likely to benefit more from the rise in oil to a record high, according to analysts. European currencies and the Aussie may also gain as their central banks are less tolerant of inflation and they export more to oil producers and emerging markets, analysts said. The Euro may also be supported by speculation European Union is strong enough to withstand a slowdown in the US, allowing the European Central Bank to keep interest rates on hold to fight inflation.
This week’s data, the Consumer Confidence surveys (Conference Board on Tuesday and University of Michigan on Friday) a

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