Dollar continued to be the weakest currencies against all currencies after the pledge of the Fed to keep interest rates near zero for stimulating growth kept investors to high-yielding currencies. The Euro, pound sterling, Aussie, Kiwi has gained new heights on speculation that the Fed will increase rates by other central banks. EURUSD traded summits of 16 months of 1.4881, GBPUSD reached the summits of 1.6747 for the first time since 2009 even as consumer confidence fell to the lowest in two years, AUDUSD reached heights of 1.0948 to a new record since 1983NZDUSD 0.8083, USDJPY, moved 69.36, USDCHF, exchanged 0.8690 depressions while precious metals such as gold moved new records of $1533.55 and Silver moved higher to $48.77.
Fed Chairman Bernanke said that the Fed will maintain its recovery plan monetary record after completing the anincrease in June while the need to contain inflation means additional flexibility would be unlikely. The Fed has maintained its position as "interest rates low for a long period of time." Inflationary pressures are regarded as high but transient everything by reducing GDP projections for 2011 and raise inflation projections.
Labour market shows signs of strong recovery while these monetary measures will continue until labour figures are quite satisfactory for the Fed to say the economy is recovering and added that a strong Dollar is in the interest of the United States.
Market shares of our Asian and European start showed strong earnings reports positive signals and the weakness of the Dollar Nikkei 1.63% increase, Topix 1.43%, Dow has increased by 0.75%, S & P 500 increased 0.62%Although the indices Hang Seng and Shanghai showed losses. The Japanese economy has been on a watch negative by S & P on its credit AA rating - and put housing starts posted the first decline in 10 months after the earthquake. The Japan Bank has kept interest rates unchanged at 0.1%, and 30 billion yen credit program also left intact. The RBNZ kept rates unchanged at 2.5% on outlook uncertain after the earthquake and the battles of nation reconstruction of high costs.
We have German unemployment data, but should focus on GDP numbers which are expected to decrease since the last quarter that could add to the weakness of the extra Dollar. Other news out would be initial claims without employment, personal consumption, pending sales, the speeches of the ECB Mersch and the Duke Fed and William.