By TraderVox.com
Tradervox.com (Dublin) – The greenback advanced against most of its peers after US data increased expectations that the employment figures from the world’s largest economy will indicate that the economy is recovering. The euro continued with poor performance for the second day before the European data that is expected to show that the manufacturing sector in the region is dwindling. If the projections of contraction are confirmed, this would be the 15th month the sector would contract. The yen continued with weekly declines against the dollar as signs of economic weaknesses started to show and as investors evaluate the effects of the Bank of Japan move to add 11-trillion yen as additional stimulus to bond-buying kitty.
According to Lee Sue Ann, who is a treasury economist in Singapore at United Overseas Bank ltd, if the employment data from the US are impressive, there might be a large number of people buying the dollar on relative basis as the dollar remains the better option for safe haven seekers. Sue added that if the data is too bad, the dollar might remain supported as it is a safe haven currency. The yen has dropped by 0.8 percent against the dollar since October 26 and is poised to register another weekly decline against the dollar. If the yen closes lower against the dollar, this will be the longest stretch of weekly declines since March 16. The yen has dropped by 0.5 percent against the euro in the past week while the US dollar has gained by 0.3 against the common currency in the same period.
The increased speculation of good employment data from the US lead to a 0.3 percent increase of the dollar against the euro to trade at $1.2901 at the start of trading in London today. The euro declined by 0.1 percent against the yen to exchange at 103.59 yen. The greenback advanced by 0.2 percent against the yen to trade at 80.28.
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