One country's loss is another country's gain, and in this morning's markets, it's the loss of the U.S. dollar that is benefiting other major currencies around the globe.
With the large-scale technology selloff in the U.S. markets yesterday dragging the
Nasdaq Composite Index to new lows in the recent months, combined with fears about a slowdown in the economy and further worries about the never-ending election, the dollar fell further in value this morning. While, according to currency analyst Robert Lynch at
, "the correlation between equities and the value of the dollar is weak," he said that the recent declines have had an effect on its valuation.
Additionally, today's revision of third-quarter GDP shows the U.S. economy growing at a 2.4% rate in the quarter, down from the previous 2.7% estimate. However, economists according to
were looking for 2.2%. Fears of a prolonged slowdown plays a large part in current worries about an economic slowdown. However, the data is old.
The weakening of the dollar brought the euro up strong this morning, trading early at $0.8645, well above the most recent support level of $0.8580, according to Lynch. This morning's level is up from yesterday's close of $0.8564. "The move in the dollar over 85.80 sparked even greater volume" this morning, Lynch said, which continued to push the dollar down versus the euro.
In Japan, forces seem to be working against each other, one side being the weakness in the
, the primary stock exchange in Japan, the other being the yen's recent strength versus the dollar. The effects of the currency are winning this morning, though, pushing dollar/yen down to 109.85 this morning, down from 110.13 yesterday.
The 110 level was identified as a key support level. The yen's movement against the dollar is in contrast to the yen's decline against the euro, with euro/yen trading this morning at 94.98, up from yesterday's close of 94.31.
The Canadian dollar is continuing its strengthening versus the U.S. dollar, with the dollar trading at C$1.5346, down from C$1.5362 at the close of trading yesterday. The recent upswing of the Canadian dollar has been a result, in part, from the quick and painless one-day election in Canada Monday while the U.S. still struggles with its own multi-week fiasco.
The Australian dollar is joining in the move against the U.S. dollar, trading up this morning at $0.5244, up from $0.5223 yesterday. The British pound is also trading up against the dollar, recently hitting $1.4238 up from a close yesterday of $1.4158.