The U.S. dollar started another week with optimism weighing negatively on its outlook, as a report is likely to indicate the highest manufacturing level in the United States in almost a year, attracting investors to higher-yielding currencies.
The U.S. dollar is posting losses versus its Canadian and Australian counterparts today after former Federal Reserve Governor Alan Greenspan said that the worst recession in decades is likely to be ending, decreasing attractiveness for the safety profile of the greenback, and attracting investors to yield. The Dollar Index was near this year’s low before a U.S. manufacturing report which is likely to reach the highest levels this year, rectifying evidences that the global slump is becoming a surpassed event, bringing investors to equities markets and emergent countries currencies. In Asia, currencies were favored by a report in the end of last week showing that South Korea grew at the fastest pace in six years.
The world is showing multiple signs of recovery, this time steadily, and this is dollar-negative, according to specialists. Oddly enough, favorable news in the U.S. economy are being interpreted as a sign of global economic recovery, pushing the dollar down, even if the nation’s economy is recovering.
USD/CAD fell to 1.0730 as of 10:15 GMT from an opening rate yesterday of 1.0775. EUR/USD is being traded at 2-month high levels at 1.4286 after topping at 1.4310 hours earlier.
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