Monday, 13 Jul 2009

USD Slides Before The Goldman Sachs Report

The U.S. dollar traded mixed against its major rivals on Monday, rising against the Japanese yen but falling against the EUR, as a rally in Goldman Sachs Group Inc. and other U.S. banks spurred speculation investors will increase holdings of higher-yielding assets. Upside surprises in bank corporate earnings reports this week could boost confidence in the U.S banking system and increase demand for safe-haven U.S. currency

The greenback edged up against the Yen, rebounding from a 5 month low, as hopes that U.S. corporate earnings may not be as weak as initially feared sparked gains on Wall Street. However, the Federal Budget Balance data showed that the U.S. budget deficit broke past $1 trillion in June, a grim testament to the recession and financial crisis. The Treasury Department reported Monday in its monthly budget statement that the Federal government spent $94.32 billion more than it made in the ninth month of fiscal 2009.