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Market Highlights June 6, 2011: As the dollar weakened Indications Continue Slowing U.S. Economy |
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Monday, 06 June 2011 05:16 |
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Data Non-farm payrolls (NFP) which was released on Friday (3/6) and complete line of weak U.S. economic data. U.S. Labor Department reported the private sector added only 54,000 workers in May. Figure represents the smallest increase in nearly a year.
NFP Data is increasingly emphasized concerns about a slowing U.S. economy.
Meanwhile, worries about Europe's growing debt crisis eased after the European Union, the European Central Bank (ECB) and International Monetary Fund (IMF) said the rest of the aid package for Greece will be submitted in July.
Not only, that Greece might even get additional aid package to address the debt crisis. Thus, Greece can avoid the necessity to restructure its debt.
The combination of these two factors bring the euro climbed to record new highs in 4 weeks against the dollar. Jumped to 1.4641, the euro was then closed in the range of 1.4632 against the dollar, rose about nearly 1 percent from opening levels.
Support the strengthening of the euro is the agenda of the ECB interest rate meeting this week. At a scheduled meeting on Thursday (9 / 6), the ECB is expected to give signals about interest rate hikes in July.
Federal Reserve (U.S. central bank), on the other hand, is expected to hold interest rates at low levels until next year along with an indication of a slowing economy. U.S. data released last week along most of the show declining performance of the entire U.S. economy.
Indications of a slowing U.S. economy was again profitable for the safe-haven currencies like the Japanese yen and Swiss franc. Both currencies are commonly the target of market participants in the current world situation is uncertain.
Yen traded at around 80.20 per dollar at the end of the session, rose about 0.9 percent from opening levels. Meanwhile, against the Swiss franc, the dollar slumped to a record new low in the history in the range of 0.8329 and closed down more than 1 percent at the end of the session.
Similarly, the world gold price, bounce back up to $ 1,545.90 per troy ounce last Friday. As the yen and francs, gold is also often the target of market participants in the current political situation and uncertain world economy.
At the end of the trading session Friday, gold closed rose almost 0.5 percent in the range of 1540.40 against the dollar.
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