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The US Dollar weakened after inflation data coming out of the USA increased speculation
that Federal Reserve policy makers will maintain economic stimulus. The Standard & Poor’s
500 Index rose for a fifth week after the Federal Reserve raised its assessment of the
US economy, refraining from moves to lower borrowing costs. Retail sales increased 1.1
percent in February and US housing data expected next week may further point to a strengthening
recovery. The Japanese Yen declined for a sixth week
versus the US Dollar on its longest losing streak in three years, as economic growth
in the USA boosted Treasury yields and the Bank of Japan indicated plans for future stimulus.
The Japanese Yen was trading at the level of 83.44 against the Dollar last Friday, which
is a decrease of -0.14%.
The British Pound reached a one-week high against the US Dollar last Friday after inflation
data emerged softer than anticipated in the US damping investor appetite for the Greenback.
The ratings agency, Fitch, placed the UK’s sovereign rating of AAA on negative watch
last Wednesday.
The Pound was last trading at the level of 1.5840, which is an increase of 0.84%.
Speculation about economic recovery in the USA, Canada’s biggest trading partner, led
to an increase in the Canadian currency. Canadian government 10 year yields rose to a high of
four months before a report coming out next week which is expected to show that consumer
prices rose at a faster annual rate. The Canadian Dollar was last seen trading
at the level of 0.9916. Gold traders are the least bullish in two
months as speculation rises that the improving economy in the USA will deter the Federal
Reserve from purchasing more debt. The Gold price was last trading at 1,659.34 an ounce,
which is an increase of 0.08%. The price of oil rose and gasoline increased
to a high of 10 months on speculation that demand for fuel will increase with the economic
rebound in the USA, the world’s biggest oil consuming country.
Oil was last trading at the price of 107.58 a barrel, which is an increase of 1.83%.
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