Breaking News
Get 45% Off 0
💰 With a 129% YTD gain in the bag, these are our AI’s top global picks for March
Read now

The Dollar Hits Resistance on Profit-Taking Ahead of the Weekend

By Saxo BankMarket OverviewMar 16, 2012 01:32AM ET
www.investing.com/analysis/the-dollar-hits-resistance-on-profit-taking-ahead-of-the-weekend-117185
The Dollar Hits Resistance on Profit-Taking Ahead of the Weekend
By Saxo Bank   |  Mar 16, 2012 01:32AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
EUR/CHF
-0.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/SGD
+0.06%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
2070
-0.69%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Profit-taking into the weekend was the order of the day during the Asian session, with the USD struggling to make further gains after its two-day rally.

On the data front, headline Singapore non-oil domestic exports staged a mighty rebound in February, rising 30.5 percent y/y versus consensus estimates of +16.2 percent after a strong performance by the volatile pharmaceutical sector and the electronics sector. Electronics exports grew 23.3 percent y/y after a 10.9 percent decline in January while pharmaceutical shipments rose 44.5 percent following a 20.2 percent rise in January, though the data series is still suffering from distortions due to the Lunar New Year holidays. Generally, the better data was ignored as analysts view the underlying theme of a weaker exports outlook as unchanged. Consequently, USDSGD showed little reaction.

Minutes from the BOJ’s February 13-14 meeting, where the central bank announced additional easing measures and the adopting of an inflation target of 1%, showed some members suggesting a 1-2 percent target range and one member asking for 2 percent outright. Compromise resulted in a 1 percent goal, though, with an aim to achieve inflation of 2 percent or less in the longer-term.

The Swiss National Bank failed to deliver on market expectations overnight, announcing no changes to the EURCHF floor but merely reiterating that the 1.20 floor would be enforced and it stood prepared to buy FX in unlimited amounts. EURCHF retreated back below 1.21 on the announcement and now looks sidelined again for another month.

Overnight data reinforced the improving outlook for US labour markets, with weekly jobless claims falling to match a 4-year low and employment components of regional manufacturing surveys improving further. Weekly jobless claims fell to 351k from a revised 365k the previous week, ensuring the 4-week moving average held steady at 356k for the second straight week, while continuing claims dipped below the 3,400k mark for the first time since Q3 2008. Both the Empire Manufacturing survey and the Philadelphia Fed survey beat forecasts on the headline, with the former rising to 20.21 from 19.53 (17.50 expected) and the latter improving to 12.5 from 10.2 (12.0 expected). However, details showed a weak new orders sub-category in both surveys suggesting momentum may be slowing in the manufacturing sector.

The Dollar Hits Resistance on Profit-Taking Ahead of the Weekend
 

Related Articles

The Dollar Hits Resistance on Profit-Taking Ahead of the Weekend

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Apple
Continue with Google
or
Sign up with Email