Monday, 28 Dec 2009

Dollar Rises Slightly vs. the Yen

The Dollar strengthened today against the Yen for the first time in four days. The Dollar rose about 20 pips against the Yen, and the USD/JPY pair is currently trading around the 91.55 level. In general, the Dollar saw mixed results against the major currencies on a very calm trading day.

Due to several banking holidays today, very low liquidity was observed during the trading session, and the major currencies retained their levels. Nevertheless the Dollar was in a modest uptrend against the Yen on speculation the U.S. economic recovery will make American assets more attractive during the near future. As time goes by, investors seem gain more confidence that the U.S. economy is indeed recovering. This is likely to support the Dollar in the long-term.

Looking ahead to tomorrow, the most interesting news event looks to be the U.S. Consumer Confidence report, scheduled for 15:00 GMT. The Consumer Confidence is a survey of about 5,000 households which are asked to rate the level of current and future economic conditions. Analysts forecast that this survey rose from 49.5 to 53.0 points during December. If the end result will be similar, it is likely to strengthen the Dollar.