Market info

Dollar seesaws

10 Mar  - Fundamental 

The dollar was mixed against major currencies Wednesday, rising against the yen and pound but giving up gains versus the euro.

What prices are doing: The dollar fell 0.15% against the euro to $1.3622 and rose 0.3% versus the pound to $1.4946. The greenback climbed 0.85% against the yen to ¥90.72.

On Tuesday, the dollar gained versus the euro and the pound, but fell versus the yen in quiet trading.

What's moving the market: A report on wholesale inventories is due at 10 a.m. ET Wednesday. Economists surveyed by Briefing.com expect a gain of 0.2% in January.

The Treasury budget will be released later in the day. A February deficit of $222 billion is expected, compared to a deficit of $42.6 billion in January.

Investors will also look to today's release of the Labor Department's report on January state unemployment.

Stocks were set to open higher Wednesday, pushing the dollar down versus the euro, said Jacob Oubina, a currency strategist at Forex.com.

What analysts are saying: While U.S. economic data has been «somewhat disappointing» lately, Oubina said he thinks the economy will gradually improve and outperform economies abroad in the coming year. As a result, he said the Federal Reserve is likely to raise interest rates, leading to a stronger dollar.

«Overall, the U.S. is going to outperform the G-10, and this will in turn lead us to having a tighter monetary policy,» he said. «I think the Fed is going to be much tighter than banks in the euro zone, Japan and the U.K., and that will be a catalyst for the dollar because interest rates will rise much higher in the U.S. than in these other countries.»

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