Underwhelming economic data released by the euro zone on Wednesday enhanced the world's reserve currency against its rival currencies and prompted a stronger demand for the monetary unit, Bloomberg reports.
Production from manufacturing and services contracted in the 17-nation region as European Central Bank and Bank of England policy makers prepare to convene their respective meetings on Thursday.
The U.S. dollar continued rising against the Japanese yen, which one currency strategist correlated with a recently installed finance minister in the Pacific Rim nation as well as the country's intentions to purchase international bonds.
"Jawboning from the new finance minister and threats of foreign bond buying by the Japanese authorities are helping improve sentiment toward the greenback," currency strategist Jamie Coleman with Forexlive.com in Boston told Bloomberg.
The Dollar Index, a metric that measures the dollar's performance against six counterpart monetary units, gained 0.3 percent as two trading sessions of losses closed.
The U.S. dollar's climb against the Japanese yen pushed to its top value in about 14 days, according to Reuters.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
