Forex Market Update Sept-25-2013 The greenback is trading lower against most of the other major currencies this morning, as data released in the US yesterday indicated that the consumer confidence fell to a four month low in September, while the Richmond Fed Manufacturing Index plunged to zero in September, suggesting that the economic recovery in the nation is doomed. However, the S&P Case Shiller home price index revealed that the house prices rose at its best pace in seven years. Market participants will focus on the durable goods orders report later today for further clarification on the strength of the manufacturing sector, following the disappointing manufacturing data released earlier this week. Meanwhile, concerns surrounding the US debt ceiling talks heightened, after the US Treasury Secretary, Jack Lew stated that the country could have less than $50 billion in cash in mid-October when the government exhausts its legal borrowing capacity. The Euro came under pressure yesterday, after the European Central Bank (ECB) Governing Council member, Ewald Nowotny reinforced ECB Chief, Mario Draghi’s stance that that the central bank would consider re-launching its long-term refinancing operations (LTRO), to fuel rapid growth in the region. He further added that it was too soon for the bank to exit from crisis measures. However, the common currency reversed its losses this morning after the German consumer confidence for October rose to its highest level in six years. Further adding to the positive sentiment was news that the Italian consumer confidence hit a two-year high in September..
Posted on: Wed, 25 Sep 2013 14:28:28 +0000
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