On Wednesday Currency Markets Mix Up


Today, the greenback was slightly down compared to the yen and the euro, as some investors snagged profits on the recent increase in the dollar.

The dollar/yen pairing, or USD/JPY, -0.27%, was changing in at ¥117.55, compared with ¥117.88 late Tuesday in New York.

The dollar/euro pairing, EUR/USD, +0.3658% , increased to $1.0428 from $1.0388 yesterday after hitting a new multi year low of $1.0352, the lowest level since January 2003.

The ICE U.S. Dollar Index, DXY,-0.23% a gauge of the buck against a basket of major currencies, decline 0.3% to 103.01, while the WSJ Dollar Index BUXX,-0.17% declined 0.3% at 93.09.

Analysts said investors were taking profits on yen bets made earlier.

Yesterday, the Bank of Japan made news  by keeping its monetary policy unmoved,  in contrast to the Federal Reserve Bank of the U.S. which surged interest rates last week.

The euro has struggled to go over 1.04. The idea that the dollar/euro could test parity, at least for now, has been obviated, writes Tony Cross, market analyst for TopTradr, in a note to investors, obtained by source. “Political risk remains a notable risk.”

President-elect Trump has made little news today to change the markets.

At approximately 3:30 p.m. today, the transition team, at Trump’s vacation home in Florida, shown the new president was meeting with the CEOs of Boeing (NYSE:BA) Corp. and Lockheed Martin Corp (NYSE:LMT).

According to the report, both international defense contractors are believed to be behind schedule and over budget for their airplane projects for the U.S., and Trump has said he will “personally” negotiate with their leaders to get the contracts back on track.

On Additional News

EUR/USD increased 0.55% to 1.0447, off the prior session’s fresh 14-year low of 1.0349.

The National Association of Realtors said that existing home sales increased  to 5.61 million units in November from 5.57 million units the prior month. Analysts had anticipated existing home sales to fall to 5.50 million the previous month.

Market sentiment had gone bad after Russian ambassador to Turkey, Andrei Karlov, was shot and killed at an art gallery in the Turkish capital of Ankara Monday evening.

A few hours later, a truck turn over into a crowded Christmas market in central Berlin, killing 12 people and hurting up to 50 others.

The dollar was still widely supported by the Fed Reserve’s decision the previous week to increase interest rates by 25 basis points. The central bank also expected, three more rate hikes for 2017.

Somewhere else, GBP/USD increased 0.20% to 1.2387, still close to Thursday’s one-month decline of 1.2310.

Earlier Wednesday, the U.K. Office for National Statistics reported that public sector, public sector net borrowing surged increased by £12.21 billion in November, compared to expectations for an increase of £11.30 billion.

Public sector net borrowing increased £4.32 billion in October, whose amount was revised from a previously estimated increase of £4.30 billion.

USD/JPY slid 0.37% to 117.42, while USD/CHF declined 0.44% to 1.0246.

The Australian and New Zealand dollars were steady, with AUD/USD  at 0.7258 and with the NZD/USD at 0.6916.

Temporarily, USD/CAD slightly changed 1.3377.

The U.S.dollar index, which gauges the greenback’s strong point compared to a trade-weighted basket of six major currencies, declined 0.41% at 102.84, still close to Tuesday’s fresh 14-year highs of 103.62.

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