The Euro Gains Against The Dollar As Investors Believe The ECB Will Not Cut Gain

Daily Forex Fundamentals | Written by Finotec Group | May 12 09 09:18 GMT |

The euro approached a seven-week high against the dollar on speculation European Central Bank officials will signal they plan to keep interest rates on hold, maintaining the allure of assets region. 'As far as growth is concerned, we're around the inflection point in the cycle, that's the sentiment,' Trichet said at a press conference at the Bank for International Settlements in Basel, Switzerland. Europe's single currency also gained after a Chinese government report showed urban fixed-asset investment rose at the fastest pace in more than two years, spurring demand for higher-yielding assets. Central banks will keep using the dollar as the world's reserve currency, Reuters cited Chinese ambassador to the U.S. Zhou Wenzhong as saying last week. He described views the dollar could be replaced with a basket of other currencies as a 'scholarly exploration,' according to Reuters. The EUR/USD is currently trading at $1.3640 as of 8:40am, London Time. Britain's housing slump eased in April as more prospective homebuyers helped to make price declines the least widespread in more than a year, the Royal Institution of Chartered Surveyors said. The number of real-estate agents and surveyors saying prices fell exceeded those reporting gains by 59.9 percentage points, the strongest result since January 2008, the lobby group said today in London. Enquiries from new buyers rose to the highest since 1999. 'There are tentative signs that the market is starting to pick up,' Jeremy Leaf, a spokesman for RICS, said in the statement today. 'We are unlikely to see significant improvement while money remains in short supply and the employment picture is uncertain.' The GBP/USD is currently trading at $1.5205 as of 8:58am, London Time. The yen rose broadly on Tuesday to extend gains made the previous day as regional stocks fell after a slide on Wall Street, prompting investors to further reduce investments in risky assets. The dollar edged down against a basket of currencies towards Monday's four-month low but held firm versus the euro, with investors taking profits from gains in other riskier currencies that had been lifted by optimism about the U.S. banking system. The yen drew some support after news that China's exports in April fell more than expected, denting expectations that the worst of the contraction in trade flows triggered by the global financial crisis is moderating. The USD/JPY is currently trading at 97.60 as of 9:05am, London time. Economic Calendar Time (GMT) E Event Currency Period Previous Previous Significance 23:50 Current Account JPY Mar 0.67T 0.51T 12:30 Trade Balance CAD Mar 0.1B 0.5B *** 12:30 Trade Balance USD Mar -26.0B -29.3B *** 08:30 Manufacturing Production m/m GBP Mar -0.9% -0.8% *** 08:30 Trade Balance GBP Mar -7.3B -7.2B ** 05:00 Leading Indicators m/m JPY Mar 75.0% 77.1% Finotec Group Inc. http://www.finotec.com/ Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.