US session – Dollar again on the defensive after risk aversion due to China
October 23, 2013 7:45 pm
The dollar found itself on the defensive again in New York trading, as the reaction to yesterday’s dollar selloff seemed to peter out.
In a session with little news for traders to react to, the euro gained 0.18% to trade at 1.3779. During the session, traders tried to push the euro past its earlier high of 1.3793 but that level held.
In economic news, the European Commission announced that Eurozone consumer confidence for October was improved at -14.50 compared to the previous month’s reading of -14.90. Expectations were for a figure of -14.40.
Elsewhere, the Bank of Canada retained its benchmark rate at 1.0% as expected. However, the Bank removed a reference for a potential interest rate hike from its statement, citing instead weakness in economic growth and inflation.
As a result, the US dollar managed to gain 0.60% against its neighboring Canadian dollar to trade at 1.0391.
The yen was little changed, gaining 0.06% against the dollar to 97.31.
Overall there was a moderate selloff in risk assets, as investors used the story of a liquidity shortage in China in order to take profits after a string of very positive sessions for stocks.
Fears that fresh capital needs would arise for Eurozone banks following an assessment by the ECB also contributed to negative sentiment.
The dollar found itself on the defensive again in New York trading, as the reaction to yesterday’s dollar selloff seemed to peter out.
In a session with little news for traders to react to, the euro gained 0.18% to trade at 1.3779. During the session, traders tried to push the euro past its earlier high of 1.3793 but that level held.
In economic news, the European Commission announced that Eurozone consumer confidence for October was improved at -14.50 compared to the previous month’s reading of -14.90. Expectations were for a figure of -14.40.
Elsewhere, the Bank of Canada retained its benchmark rate at 1.0% as expected. However, the Bank removed a reference for a potential interest rate hike from its statement, citing instead weakness in economic growth and inflation.
As a result, the US dollar managed to gain 0.60% against its neighboring Canadian dollar to trade at 1.0391.
The yen was little changed, gaining 0.06% against the dollar to 97.31.
Overall there was a moderate selloff in risk assets, as investors used the story of a liquidity shortage in China in order to take profits after a string of very positive sessions for stocks.
Fears that fresh capital needs would arise for Eurozone banks following an assessment by the ECB also contributed to negative sentiment.
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