Forex News

The U.S. dollar failed to pare yesterday’s losses as risk appetite continued to favor higher-yielding and commodity related currencies, erasing partially last week’s advance for the greenback as factors supporting the dollar’s strength continued to fade this Tuesday.

The U.S. dollar lost versus most of the main traded currencies in foreign-exchange markets with a stronger risk appetite today as traders expect the economic recovery to accelerate, decreasing demand for refuge currencies after the dollar gained during most of the past week’s sessions.

The dollar is going towards the end of this week with a positive performance versus most of its main trading partners currencies, after a GDP report published today brought figures beyond what analysts suggested, adding confidence for the U.S. economy and currency outlook.

The U.S. dollar advanced versus several key currencies after a Federal Reserve statement announcing that a number of stimulus to help the economic recovery will be lifted, as according to central bankers, the economy is already showing enough evidences of improvements to allow these measures.

The dollar gained today versus most of the 16 main traded currencies as China tightened its lending restrictions, raising risk aversion in foreign-exchange markets affecting high-yielding currencies the most, as investors search for safer bets.

This Friday’s shift in market sentiment allowed the U.S. dollar to post a weekly advance versus most of the main higher-yielding currencies, as risk aversion rose globally and traders opted by the relative safety provided by dollar-priced assets.

The dollar had a mediocre performance today losing versus a considerable number of currencies after the nation’s central bank was not so optimistic regarding the U.S. economy recovery, declining appeal for the greenback.

The U.S. currency was performing quite well during most of this week’s session as optimism regarding the U.S. economy was high, but the employment data published on Friday forced the greenback down versus most of the main traded currencies, as figures came much below forecasts.

An employment report waited during all the week and released today frustrated analysts bringing weaker-than-expected figures for the U.S. economy, pulling the dollar down versus most of the 16 main traded currencies.

A report published today indicating fewer-than-expected new jobless claims applications last week allowed the dollar to gain versus the euro and several other currencies as improving employment data is a key-evidence indicating the U.S. economic recovery expected for 2010.