Dollar to keep upbeat tone in Obama week
banking sector and prospects of deepening economic recessions around the world. data.
Given the market optimism about Obama stimulus package, uk canada goose outlet some market participants believe the dollar could get a positive knee jerk reaction from his inaugural remarks.
Still linked site https://www.canadagoosetomall.com Canada Goose Outlet analysts did not rule out a modest canada goose uk black friday pullback in the greenback after three straight weeks of gains against the euro. They said a possible turn lower in the dollar would be technical in nature and not dictated by fundamental canada goose factory sale news.
do maintain an overall cheap canada goose uk bullish canada goose clearance sale view on the dollar, although I wouldn be Canada Goose Parka surprised to see a corrective pullback because the dollar has strengthened in the last few weeks, Canada Goose Jackets said Vassili Serebriakov, senior currency strategist, at Wells Fargo in New York.
this canada goose clearance would be all dictated by positioning and technical factors because canada goose the dollar has been immune to negative news and uk canada goose has even gained.
The dollar has risen 1.8 percent this week Canada Goose sale against the euro
The euro has struggled, as evidence canada goose coats mounted that recession in the 16 cheap Canada Goose member euro zone could be Canada Goose Coats On Sale a deep one. buy canada goose jacket cheap For instance, data Canada Goose online showed this week that Germany, the canada goose store euro zone largest economy, grew at its slowest pace in three years in 2008.
Germany had contracted between 1.5 percent and 2.0 percent in the final three months of the year, the largest fall since German reunification in 1990.
Further depressing the euro was a downgrade of Greece sovereign buy canada goose jacket debt rating by Standard and Poor this week. Earlier, S said ratings on Spain and Ireland were also under threat.
EURO OUTLOOK, OBAMA A 50 basis point interest rate Canada Goose Online cut by the European Central Bank on Thursday pushed the euro lower, although statements canada goose uk shop by European Central Bank President Jean Claude Trichet suggesting that the bank will delay its next policy easing until March partly averted a massive sell off in the euro.
failure of canada goose uk outlet the euro to break below the key $1.30 level, despite the ECB cutting interest rates, is significant, Serebriakov said. will probably cool off some of the bearish sentiment on the euro.
He added that he sees a risk the euro could rise canada goose coats on sale toward $1.35.
There was a slight pick Canada Goose Outlet up in risk appetite on Friday, weighing on the dollar and yen, another currency that benefits from increased market uncertainty because of its funding role in carry trades. Many think the positive impact of this news would be short lived, as more companies may need financial aid.
do not expect (the return of risk appetite) to be sustained, said Barclays Capital in its latest research note.
particular concern is that government capital injections do not address the core problem of (eroding) asset quality on bank balance sheets, which in turn, impedes their ability to lend.
Danske Bank canadian goose jacket in a research note pointed out that a canada goose black friday sale key challenge for Obama is the country burgeoning budget deficit, which in the long term is a negative factor for the dollar.
may. shift back to the government deficit and the possible impact of the massive stimulus package that is due in the spring, said Danske. financial sector unfolds. (Editing by Tom Hals).
