North-West Financial Broker
Personal Area
Personal Area
01 Feb - Fundamental
The dollar rose against most currencies Monday after upbeat reports, including data on U.S. manufacturing, added to recovery hopes.
What prices are doing: The dollar fell 0.33% on the euro to trade at $1.39. But the U.S. currency rose against the British pound, gaining 0.2% to $1.60, and the Japanese yen, gaining 0.4% to trade at ¥90.63.
What's moving the market: Earlier Monday, the Institute for Supply Management's manufacturing index rose to 58.4 in January from 54.9 in December. Economists thought it would rise to only 55.5.
The government reported personal income and personal spending rose in December, but a separate report showed construction spending fell in the same month.
What analysts are saying: «Overall, the data coming out today is dollar-positive,» said Brian Dolan, chief currency strategist at Forex.com. «The U.S. seems to be outpacing the rest of the world in recovery.»
Dolan said investors are looking to the government's Friday report on the unemployment rate to gauge the recovery's strength.
If signs continue to show that the economy is turning, that will boost the dollar, he said. But the euro zone is having trouble bouncing back, as mixed data and credit rating downgrades have plagued several countries.
«Last year was all about fear of the dollar,» Dolan said, «but 2010 will be the year of fear of the euro.»
