Author: admin   Add date: 05/01/2009   Publishing date: 05/01/2009   Hits: 2

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TORONTO (Dow Jones) - U.S. little response to news of GDP decline in the United States-than-expected first quarter, and the rest lower against most major currencies Wednesday. U.S. dollar little changed in a wide range of currency transactions in the immediate release of the minutes, but recovery of the early strength of the euro and the pound in the future transactions. GDP down 6.1%, seasonally adjusted annual rate in January to March, despite the rise in consumer spending, the U.S. Department of Commerce announced at its first estimate of the data. 6.1% decline far exceeded Wall Street expectations, fell almost 6.3 percent different than the fourth quarter, when the economic recession that began in December 2007 to deepen. However, economic data are still relatively low and the size of the driver in the foreign exchange market, analysts said. Technology is to overcome the emotions and feelings which is higher than the fundamentals, the economic data at the bottom of the barrel is said, Michael Woolfolk, senior currency strategist at Bank of New York Mellon strategy. Now the technology is very negative on the dollar, he said. Long-term access to U.S. markets this week and decided to enter the post gross domestic product data and the interest rate the Federal Reserve announced late Wednesday, he said. Neutral on the dollar to maintain the overall response to the data constraints, he said. Dollar against the euro, pound sterling, and a wide range of other major currencies Wednesday earlier in the fear of pigs, the avian flu epidemic subsided slightly and the overall improvement in risk appetite. It has improved slightly against the yen. Wednesday morning, the U.S. dollar Tuesday Y96.81 from Y96.40 late in New York electronic trading system showed. The euro against 1.3238 U.S. dollars from 1.3142 U.S. dollars and Y128.12 from Y126.70. CHF1.1380 dollar from CHF1.1435, and point the pound against the 4,706 U.S. dollars from 1.4625 U.S. dollars. The new consumer confidence index from the United States Tuesday, showing a strong recovery more than expected last month to help push optimistic that the economy may bottom in overnight trading, boosting the risk-sensitive currencies such as euro and Canadian dollar. Steve Barrow, senior foreign exchange strategist with Standard Chartered Bank in London said that the green shoots of recovery has begun to appear on a global scale more than 50% of the economic data, the Group of 10 industrialized countries last week, the future better than expected, 39 %, lower than expected, 10% in line with expectations. This week has been about 75 percent higher than expected so far. This helps to enable active risk, investors hedge the currency back to the main swine flu fear subsided immediately. The euro also has some confidence in the euro zone to help the latest index, fell more than expected improvement. Economic Confidence Index rose to 67.2, as amended in April of 64.7 in March. Only to find a market increased to 65.3. About 14:15 Market Committee (FOMC) Wednesday, the Fed will announce the results of its Open Market Committee meeting. The Fed is not expected to be a major departure from the aggressive attitude of an overview of the quantitative easing policy at its last meeting, but the notice may caused some fluctuations in the foreign exchange market. Michael Woolfolk of the Bank of New York Mellon said that further quantitative easing measures from the Federal Reserve seems likely. Action, show that the curve of the Federal Reserve and the future prospects of the United States is becoming more positive results may encourage market participants to buy dollars and cut the number of posts after the strength of other professionals, most recently in these currencies. We have a good run on the euro and sterling, we may see a stronger dollar after the fact, he said. Technology may start to take the back seat of emotions, said Woolfolk. Canada AM Canadian dollar stronger against the U.S. dollar on Wednesday morning, because it is also conducive to the improvement from the emotional risk, even though it has come down, its high point. Is currently around 1.2 U.S. dollars 57 U.S. dollars ©– C from a low of 13 U.S. dollars 1.2 ©– earlier from the C point of trade and 2,208 U.S. dollars late Tuesday. One from TD Securities said that the Canadian dollar is the best of the major currencies Wednesday morning. The U.S. dollar / Canadian dollar lower in overnight trading, breaking the important short-term technical support (2,170 U.S. dollars point C) and trigger the way to stop the sale of one-way trade to a large extent, he said: The Transport Department said.

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