Daily Insight
Today is Wednesday, March 10th, 2010
The pound weakened for a third straight day versus the dollar and the euro, nearing the lowest level against the U.S. currency in 10 months, as a report showed U.K. manufacturing unexpectedly fell below projections. Sterling weakened against all 16 of its most widely traded peers, adding to declines yesterday, when Fitch Ratings said Britain is taking too long to cut its budget deficit. The pound is the worst performer this year among the U.S. currency’s 16 most-traded counterparts.
The yen declined against all of its major counterparts after a report showed that Chinese exports rose the most in three years, renewing investor demand for higher-yielding assets. The Japanese currency was at its lowest level against the Australian dollar in almost two months.
The euro fell to its lowest level versus the New Zealand dollar in almost a year after a report showed German exports unexpectedly slumped in January, adding to evidence the European economic recovery is struggling to take hold. As the New York morning starts, 9AM EST, the euro is showing a small gain over yesterday’s close.
The recovery in Europe, Japan and the U.K. is lagging the U.S., emerging markets and the rest of Asia.
The U.S. dollar weakened against New Zealand’s dollar for a fourth day and traded near a two-month low against Canada’s currency after Federal Reserve Bank of Chicago President Charles Evans said yesterday he expects the central bank to hold its target rate at a record low for the next “three or four meetings.”
Have a great day!
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