Dollar Appreciates on Better Economic News

The U.S. dollar continued to gain today after the yesterday’s rather significant rally as the speculations that the world’s biggest economy is soon to leave its recession period arise.
The dollar grew against the euro and the British pound today, while being almost unchanged versus the Japanese yen. Yesterday, after the fundamental indicator news were released along with some corporate reports, the U.S. dollar advanced against all major currencies that are traded on Forex. The overall picture is definitely improving for the United States.
A somewhat unique flavor of the current situation lies in the fact that the dollar gains on good U.S. news, whereas previously good fundamentals from U.S. were benefiting only for their stock market and were very negative for the dollar. It looks like the traders now need to buy the greenback not only to get into a «safe haven» (and U.S. looks extremely safe comparing to other big economies) but also to buy the U.S. stocks, which promise huge earnings to the greedy investors that have enough courage to enter the market today.
The currency analysts point at the banks’ Q1 2009 reports (Wells Fargo’s being most prominent) as the main moving factor for the dollar. The say that more investors would want to buy dollar to use for the entry into the U.S. private financial system.
EUR/USD fell from 1.3156 to 1.3142 as of 11:05 GMT today after reaching as low as 1.3088 earlier — the minimum level since March 18. GBP/USD declined from 1.4670 to 1.4611, whole USD/JPY remains virtually unchanged near its 100.40 open level.

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