The dollar edged up on Monday after faltering in Asia on concerns about U.S. economic recovery, while the euro failed to make headway after a G20 summit failed to set markets alight.
The market showed little reaction to a Group of 20 leaders' summit where they agreed to take different paths to cutting budget deficits, a reflection of the uneven and fragile economic recovery in many countries.
The euro fell to a lifetime low against the Swiss franc on Monday after comments from a Swiss central bank official bolstered the market's view the country was winding down intervention to stem strength in its currency.
Most Asian stock markets rose on Monday, with Europe set to follow, as fears eased that Washington would draft a harsh bill for regulating the banking sector and after an unremarkable conclusion to a Group of 20 leaders' summit.
The dollar was on the defensive on Monday as investors sought to cut long positions built in favour of the greenback, while the euro held gains as the focus shifted to the sustainability of a U.S. recovery from the euro zone debt woes.
The yuan CNY=CFXS weakened against the dollar on Monday and traded below the People's Bank of China's mid-point as banks and their clients were cautiously balancing dollar positions in anticipation of only limited yuan appreciation after the G20 summit.
he Australian Dollar dealt above 0.8700 on Friday night as equity markets traded in a wide range.
Daily forex forecast 28/6/2010
The dollar climbed against the euro and fell against the yen on Friday as investors sought safety on concerns about euro zone fiscal strains and data showing soft U.S. economic growth.
There is no basis for major appreciation of the yuan, given China's shrinking trade surplus, although the country's latest yuan policy will help to restructure its economy in the long run, a senior central banker said on Friday.
U.S. Senator Blanche Lincoln credited common sense for helping forge a compromise on her proposal to force banks to spin off their swap trading operations, allowing them to retain the bulk of their books but bar them trading commodities, equity and credit default swaps.
The dollar rose against the euro and fell against the yen on Friday as investors sought safety amid ongoing concerns about fiscal strains in the euro zone and after a report showed soft U.S. economic growth data.
The dollar briefly extended declines against the yen on Friday after U.S. government data showed gross domestic economic growth was slower than previously estimated in the first quarter as estimates of business and consumer spending were cut.
The euro fell broadly on Friday after investors pulled back from riskier assets as share prices fell, but the market was wary of chasing prices aggressively ahead of a Group of 20 leaders' summit.
The yuan CNY=CFXS ended at 6.7900 against the dollar on Friday, its highest close since its July 2005 revaluation, after the central bank set the daily reference rate at a post-revaluation high in an apparent goodwill gesture ahead of the G20 summit.
The dollar made little headway on Friday in subdued trade as traders marked time ahead of a Group of 20 leaders' summit this weekend, but remained wary about chasing riskier assets given debt and growth worries.
China's Ministry of Commerce, a long-standing opponent of a stronger yuan, fell into line on Friday behind the scrapping of the currency's peg to the dollar but said the exchange rate would climb only gradually.
The yen rose broadly and stayed near a 1-month high against the dollar on Friday on short covering, and as falls in regional share markets prompted traders to further sell risky currencies such as the Australian dollar.
The dollar was on the defensive on Friday on doubts about a recovery in the U.S. economy while short covering and a general wariness towards riskier assets kept the yen near a one-month high against the greenback.
After a brief rally yesterday, the AUD has fallen back through USD0.8700 as risk aversion trading was back in play.
With a distinct lack of any local economic data the Aussie dollar traded within a narrow band bouncing between 0.8670 and 0.8770 over the last 24 hours.
The excitement surrounding the new Chinese yuan currency regime has been not been reflected in the non-deliverable forward (NDF) market.
The 1-year CNY NDF is only pricing in a 2 percent move in the next 12 months. This is conservative compared to the pricing of the 1-year NDFs in July 2005 when China altered their currency policy from a de-facto peg of 8.2765 yuan per dollar to a managed float.
The yen rose against the dollar and euro on Thursday as a less optimistic outlook on growth from the U.S. Federal Reserve dented risk appetite, with the single currency further hampered by Greek debt markets.
The dollar and yen rose against the euro on Thursday as a less optimistic outlook on growth from the U.S. Federal Reserve dented investors' appetite for risk, with the euro further hampered by Greek debt markets.
Concerns over Greece were hanging over the euro zone, as the cost of protecting its government debt against default hit a record high.
The dollar pared losses and the yen rose on Thursday, as a less optimistic outlook on growth from the U.S. Federal Reserve dented investors' appetite for risk, while the euro was hampered by Greek debt markets.
Gold was broadly steady on Thursday, weighed slightly by traditional currency fundamentals as the dollar rose, but expectations for low interest rates and wider market jitters were keeping the metal's uptrend intact.
The dollar pared losses and the yen rose on Thursday, as the Federal Reserve's less optimistic outlook for growth dented risk sentiment, while the euro was hampered by Greek debt markets.
The yuan CNY=CFXS closed higher against the dollar on Thursday after moving in a wide range of more than 150 pips, as the central bank returned to a more laissez faire stance seen early in the week and let the market have a bigger say in traded values.
he AUD continues to trade close to the top of its recent trading range, supported by the currency control changes out of China.
The Aussie opens today lower at 0.8700 against the Greenback as mixed signals on the US housing front overnight cast shadows over the US economy in the lead up to the U.S. Federal Reserve's latest announcements tonight.
The dollar was lower against the euro ahead of a decision on interest rates from the U.S. Federal Reserve, while sterling rose sharply as investors continued to view the UK budget positively.
