Dollar hit by Lingering Fears
Ohh, i forgot...here is great article by Korman Tam form Forexnews.com
The greenback slumped in the Friday session amid a combination of persistent concerns over the solvency of Fannie Mae and Freddie Mac, and rallies in the commodity markets, particularly oil trading to $147 per barrel. The dollar plunged to a 25-year low against the Australian dollar beyond the 0.97-level to 0.9715 on the heels of surging commodity prices and crept closer to its all-time low versus the euro at 1.5846, shy of its record low at 1.6018.
Stronger than expected US economic reports failed to prop the greenback higher as pessimism over the stability of the financial markets continued to plague both the currency and US equity markets. The trade deficit unexpectedly narrowed in May falling to $59.79 billion, beating estimates for the deficit to expand to $62.5 billion from $60.9 billion a month earlier. The July University of Michigan preliminary sentiment survey improved to 56.6, beating calls for a decline to 55.5 from 56.4. The expectations component declined to 48.3, albeit less than the estimated decline to 48.0 from 49.2.
The greenback slumped in the Friday session amid a combination of persistent concerns over the solvency of Fannie Mae and Freddie Mac, and rallies in the commodity markets, particularly oil trading to $147 per barrel. The dollar plunged to a 25-year low against the Australian dollar beyond the 0.97-level to 0.9715 on the heels of surging commodity prices and crept closer to its all-time low versus the euro at 1.5846, shy of its record low at 1.6018.
Stronger than expected US economic reports failed to prop the greenback higher as pessimism over the stability of the financial markets continued to plague both the currency and US equity markets. The trade deficit unexpectedly narrowed in May falling to $59.79 billion, beating estimates for the deficit to expand to $62.5 billion from $60.9 billion a month earlier. The July University of Michigan preliminary sentiment survey improved to 56.6, beating calls for a decline to 55.5 from 56.4. The expectations component declined to 48.3, albeit less than the estimated decline to 48.0 from 49.2.
