As the treasuries provided investors with surprisingly substantial earnings, a new yearning for the U.S.Dollar caused an increase in its value. This spike in profit was in fact the highest we’ve seen in a year. But treasury yields are not the only factor that benefited the dollar this past week. News about expansion of Philadelphia’s area manufacturing and a small hike in consumer prices except for fuel and food made the Dollar climb.In the meantime, the Euro continued its downward trend for a fifth day in a row against the U.S. Dollar on speculations that Ireland will indeed receive that help that it so desperately needs to overcome its financial woes; and the yen also went onto its third week of price decrease against the greenback.
New data regarding the U.S. economy’s health will be released in the upcoming week. Experts believe the numbers will show a growth of 2.4% for the last quarter, information which they assume will add strength to the currency.
Revenues from the 10-year-note revealed an astounding increase of 34 points while investors around the globe pondered on the usefulness of the Federal Reserve’s unwavering decision to purchase $600 billion of debt; and while the plan has not been received well around the globe, it’s already been put into action.
For now, China is also trying to curb inflation by having its banks set aside additional reserves. With this measure they hope to better control their credit system.
David Sumner is a freelance writer with a specialization in reporting on the world of finance. David holds a B.A. from the University of Maryland. Currently David is based in the U.S. but spends a good portion of the year traveling throughout Europe and Asia.
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