Economic Data Lift Dollar
The greenback was strengthening Wednesday following the release of a new economic report on the services sector that traders viewed favorably.
Euros were selling for $1.412, down from $1.4154 late Tuesday. One dollar was trading for 116.7 Japanese yen, up from 115.8 yen a day earlier. British pounds were trading for $2.036, down from $2.042 previously.
"The inflation and employment components of the ISM nonmanufacturing survey may have been interpreted by some market players as a reason for the Federal Reserve not to ease as much as 50 basis points," explains Joe Brusuelas, chief U.S. economist at IDEAglobal in New York.
The Fed cut the cost of borrowing last month by one-half of 1%, but should the central bank hold firm in the near term, the U.S. currency and domestic assets would look more attractive to investors than they did previously. Traders therefore quickly bid up the value of the greenback after the news was released.In other currencies, the Swiss franc was weakening, with $1 buying CHF1.1799, up from CHF 1.1752 previously. The U.S. dollar was softer against the Australian dollar, buying AU$1.1266 vs. AU$1.131 a day earlier. The PowerShares DB G10 Currency Harvest (DBV), which tracks the values of leading currencies, was rising 0.3% in recent action. The CurrencyShares British Pound Sterling Trust (FXB) was off 0.3%, while the CurrencyShares Euro Trust (FXE) was barely changed. The CurrencyShares Japanese Yen Trust (FXY) was dropping about 0.8%.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV