This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dollar Steps Back Ahead of ECB Meeting

The U.S. dollar rally was interrupted against most of the majors as strong Chinese data supported risk.

Fears engulfing the euro toned down a little amid speculation the European Central Bank could take action Thursday to contain the debt crisis, despite the news of Portugal's potential debt downgrade. But the euro continues to maintain Tuesday's trading range and will need to get above Tuesday's high ($1.3150) to garner further support.

Meanwhile, the risk-on sentiment, coupled with an astonishingly high manufacturing PMI, boosted sterling, which reached $1.565 and subsequently fell back.

The combinations of strong global PMI's and rise in risk appetite eased demand for safe-haven currencies, weakening the yen and Swiss franc, both of which are down vs. the dollar.

Elsewhere, despite the soft domestic data, with gross domestic product and PMIs both below consensus, the Australian dollar is buoyed by the strong Chinese data with the currency reaching $0.965 and then falling back after some profit-taking.

European sovereign bonds yields started to fall with Portugal and Ireland leading the decline on speculation the ECB will boost bond purchases to calm markets. Namely, 10-year Irish yields are down 15 basis points followed by a 11 basis points decrease in Portugal. In addition, Portugal's T-bills outperformed as the government raised all of the intended €500 million amidst solid demand as the issue was 2.5 times oversubscribed which helped support the drop in Spanish and Italian yields.

Meanwhile, 10-year German yields are up 8 basis points with the 10-year U.S. Treasury up 7 basis points, increasing the Germany's yield advantage and aiding euro strength.

The Bank of Thailand surprised the market by hiking its official repo rate by 50 basis points to 2%, while Indonesia is being vetted for a possible credit upgrade by Moody's.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs