Foreign currency exchange traders showed their confidence in the U.S. Dollar as demand for U.S. Treasuries increased on worries that global economic growth is coming to a standstill. Predictions that the U.S. currency will drop against the Euro, the Pound, the Yen and other majors dipped yesterday. Figures also revealed that investors anticipate the U.S. monetary unit will strengthen versus the shared currency due to speculation that the debt crisis will spread throughout the Euro region. Data showed that U.S. Retail Sales and Business Inventories rose although there was a huge fall in Consumer Sentiment.
Following last week’s panic which shook the core of the financial markets, some of the best Forex analysts expect this week to be just a tumultuous. French President Nicolas Sarkozy and German Chancellor Angela Merkel are expected to meet tomorrow in order to discuss governance of the Euro zone; meanwhile, the U.S. will issue a series of metrics on the housing sector and inflation.
Other free Forex news releases indicated that worries over a slowing economy caused the Canadian Dollar to weaken against the greenback.
And as Japan’s currency neared a post-World War II high, the Finance Minister, Yoshihiko Noda, stated that the Bank of Japan is ready to intervene yet again, in order to aver the potentially damaging effects that an overvalued Yen could have on the Japanese economy. The Euro slumped the most versus the Yen on fears that the crisis may spread to France.
Lastly, the Australian and New Zealand Dollars both fell against their peers.