Dollar Sets 13-Month High As Euro Struggles On ECB Easing Expectations
Published 2014-08-27 06:24:34| Amwal Al Ghad English
The dollar hit a 13-month peak against a basket of major currencies on Wednesday, with the euro still struggling amid expectations of further policy easing from the European Central Bank. The dollar index rose as far as 82.727 at one point, its highest level since July 2013. It was last steady on the day at 82.648. Data on Tuesday showed orders for U.S.-manufactured durable goods posted their biggest gain on record in July, while consumer confidence rose in August to its highest level since October 2007. The eye-catching U.S. data, albeit driven by a huge jump in aircraft orders, only served to bolster long dollar/short euro positions - a trade embraced in earnest after recent dovish comments from European Central Bank President Mario Draghi.
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Get To Know
Born in 1954 in the coastal city of Balteem in the Delta governorate of Kafr El-Sheikh to a working-class family, Hamdeen Sabahi was the youngest of 11 children.He studied mass communication at Cairo University. A politically-active student, he was elected head of the Cairo University Student Union in 1975 and served as deputy chair of the General Federation of Students from 1975 to 1977. He established the political Nasserist Thought Club to mobilise on Cairo University’s campus in defence of the principles of Gamal Abdel-Nasser's 1952 revolution in a context of later rapprochement efforts with the West by then-president Anwar El-Sadat. As well as being a political activist, Sabahi worked as a journalist. In 1977, following the January popular uprising against Sadat over skyrocketing food prices, Sabahi publicly confronted the president in a televised meeting in which he spoke on behalf of the Cairo University Student Union. As a result, Sabahi was prohibited from working as a journalist in the state media sector for several years. Sabahi’s membership in the Arab Democratic Nasserist Party was suspended in 1994 due to internal conflicts between the party's young cadres – including Sabahi – and the party's old guard of personalities who had been close to late president Nasser.
The euro fell below $1.32 for the first time in nearly a year Monday following Mario Draghi’s unexpected suggestion on Friday that more stimulus could be on the way for the euro zone. The euro gapped lower against the dollar EURUSD, -0.01% during Asia’s trading session, but then held steady after the German Ifo survey reading showed business confidence declined more than expected in August. The euro traded at $1.3195, down from $1.3242 late Friday in New York. The euro could see a temporary recovery “as technical traders line up their bids ahead of the 2013 lows” of $1.3150 before continuing its decline, according to a research note from Boris Schlossberg, managing director of FX strategy at BK Asset Management. The U.S. dollar has continued to rise against the euro, yen and Canadian dollar in August despite U.S. interest rates trending lower. If this phenomenon persists for another week, it will mark only the fourth month since the 2008 collapse of Lehman Brothers that the dollar has risen while interest rates have fallen, according to David Woo, head of global rates and currencies research at Bank of America Merrill Lynch. U.K. markets are closed Monday for a holiday, which will add to the usual end-of-summer light trading volume. The euro EURJPY, -0.16% traded at 137.20 yen Monday, down from ¥137.67 Friday. The dollar USDJPY, -0.15% was trading flat at ¥103.98 Monday. The pound GBPUSD, -0.04% traded at $1.6583, up from $1.6572 late Friday. The WSJ Dollar Index BUXX, -0.03% a measure of the dollar against a basket of major currencies, was up 0.13% at 74.63.
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