Currencies: Wait-and-See Game Continues for Forex Traders
It's been another uneventful morning in the currency markets as traders await the U.S. Supreme Court decision on the presidential election.
With little motion in the dollar against any of the other major global currencies, this morning's trading has "waiting for Christmas written all over it," said senior European economist Malcolm Barr of Chase Manhattan in London. Barr said that any motion today in the euro upwards on the dollar was solely momentum from yesterday, and that the trading was really only within yesterday's range.
Reuters noted this morning that the small upward rise in the euro may be a result of M&A- and options-related buying of the single currency. The euro was most recently trading at $0.8781, up slightly from yesterday's close of $0.8758.
Recent movement in the dollar/yen has also been minimal, with "nothing really in the news behind it," said Barr. The dollar has crossed over the 111 threshold already this morning, and remains up on the yen, recently at 111.61 from yesterday's close of 110.84. The euro/yen cross was also gaining this morning, being pulled up by the euro/dollar movement. The euro/yen was trading at 97.97, up from 96.99 yesterday.Other major currencies are a mixed bag again today against the dollar. The Australian dollar is up slightly on the U.S. currency, recently trading for $0.5423, up from a close yesterday of $0.5404. The Canadian dollar is following suit this morning, gaining a bit of ground against the U.S. dollar. The U.S. currency was recently trading at C$1.5264, down just barely from yesterday's close of C$1.5267. The British pound is slightly lower versus the dollar in current trading after news that British inflation was below government targets for the 20th consecutive month in November. The pound was recently at $1.4470, down from yesterday's close of $1.4456.
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