http://www.forex.com/uk/post?SDN=31b82d80-1eab-430b-b90e-566cbe73af36&Pa=20db1fa6-e674-420c-9a87-2ee29261d638
The dollar continued to wilt today in Asia after lower bond yields prompted traders to sell the US currency. A solid showing in a seven year US Treasury bond auction earlier today drove bond prices up and yields lower and sparked another round of dollar selling that saw an apex here in Asia amidst thinned holiday trading conditions. EUR/USD topped 1.3255 today to complete a 175 pip move higher over the past 24 hours. Other currencies followed, with the Aussie and Swiss franc hitting record highs against the beleaguered greenback.
With a shroud of lingering debt concerns, the Euro has lost some of its luster to investors as of late. As an alternative, the Australian dollar and Swiss Franc are gaining popularity as less tarnished options for investment, pushing both currencies to record highs today against the dollar. The AUD/USD had the momentum to poke over the 1.0195 mark to post a level not seen in almost 30 years, only losing steam on weaker Chinese HSBC PMI data. As well, the USD/CHF pair saw a low of 0.9415 which represents an all time high for the franc, which has seen its value rise by over six big figures in the month of December alone. EUR/CHF saw lows of 1.2465 on a 40 pip drop today.
Against the yen, the dollar dropped to 81.26 lows, not very far from BOJ intervention levels from a few months ago. The yen crosses wilted lower as the Nikkei was pelted by over 1% on the day. While both gold and silver were slightly firmer, the precious metals remained mostly range bound in quiet trade conditions.
With tomorrow being New Years Eve in Asia, and with Japan out for the next four days, be wary of very thin market conditions until the New Year. For those of you in Asia on this last trade day of 2010, have a happy and prosperous 2011….
With a shroud of lingering debt concerns, the Euro has lost some of its luster to investors as of late. As an alternative, the Australian dollar and Swiss Franc are gaining popularity as less tarnished options for investment, pushing both currencies to record highs today against the dollar. The AUD/USD had the momentum to poke over the 1.0195 mark to post a level not seen in almost 30 years, only losing steam on weaker Chinese HSBC PMI data. As well, the USD/CHF pair saw a low of 0.9415 which represents an all time high for the franc, which has seen its value rise by over six big figures in the month of December alone. EUR/CHF saw lows of 1.2465 on a 40 pip drop today.
Against the yen, the dollar dropped to 81.26 lows, not very far from BOJ intervention levels from a few months ago. The yen crosses wilted lower as the Nikkei was pelted by over 1% on the day. While both gold and silver were slightly firmer, the precious metals remained mostly range bound in quiet trade conditions.
With tomorrow being New Years Eve in Asia, and with Japan out for the next four days, be wary of very thin market conditions until the New Year. For those of you in Asia on this last trade day of 2010, have a happy and prosperous 2011….
Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
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