Dollar Edges Up On Risk-aversion

Dollar Edges Up On Risk-aversion


The US dollar drifted higher against its major rivals on Wednesday in Asia as traders trimmed positions in risk-currencies and sought the perceived safe-havens ahead of key remarks by Federal Reserve Chairman Ben Bernanke at the Kansas City Federal Reserve's Jackson Hole symposium on Friday.
Risk-currencies gained momentum in the previous session as the market started to speculate some concrete actions from the ECB after its President Mario Draghi chose to stay away from this week's annual Jackson Hole Symposium in Wyoming "due to heavy workload foreseen for the next few days".
The European Central Bank will hold its next meeting in Frankfurt on September 6 and the market is awaiting hints on the central bank's proposed bond-buying program, which could help ease borrowing costs faced by euro members such as Italy and Spain.
Traders have begun pricing in an ECB move no later than September, as the debt crisis plaguing the euro area precipitates and Spain is speculated to seek a full fledged bailout.
Successful bill auction in Spain lifted the euro yesterday, with Spanish treasury selling EUR 3.6 billion of bills, exceeding it's maximum target of EUR 3.5 billion with a sharp fall in yield.
Yield on 3-month bills dropped to 0.946 percent, down from 2.434 percent in July. Yield on 6-month bills fell to 2.026 percent, down from 3.691 percent last month.
The dollar inched higher to 0.9570 against the Swiss franc, bouncing back from yesterday's multi-day low of 0.9550. Although the dollar-franc pair shows some bullish appeal intra-day, its medium term bias is quite bearish as it is heading towards the key 0.95 demand zone.
The greenback also reached as low as 1.2554 against the euro before leveling off in late Asian deals Wednesday. With the RSI and the 50-day SMA staying bullish, the near-term outlook for the dollar is pointing towards the downside with 1.26 seen as the probable support level.
The dollar also ticked higher to 1.5816 against the pound from its recent low of 1.5858. The cable lacks a clear direction in the near-term but seen a possible re-test of the 1.59 level in longer-time frames and any bearish bias could revert it to below the 1.58 level.
The US currency edged higher to 78.64 against the yen on Wednesday morning in Asia and the pair hovered around the 78.60 area in late trading. If the dollar-yen pair strengthens further, 78.85 is seen as the next likely resistance level in the near-term.
Looking ahead, French business confidence indicator, Swiss KOF leading indicator, Italian consumer confidence, German CPI-all for August and Italian retail sales for June are expected to garner market attention in the European session.
The U.S. GDP for the second quarter, pending home sales for July and the Federal Reserve's Beige book economic survey are the key data to watch in the North American session.


More FOREX-news on pages InstaForex.Com


How to Become a Forex Introducing Brokers?

Working with INSTAFOREX you receive the highest benefit in comparison with other brokers. We offer the best conditions for partners and clients and are ready to confirm it by figures and definite advantages.


Cooperation with INSTAFOREX is:

* 1.5-2 pip commission for Forex and up to 10 pips for Gold

* Additional reward for Introducer Brokers

* 24-hours online access to the affiliate statistics

* Free analytics of your affiliate link traffic

* Free completed website with the opportunity of easy administration

* Free Forex news line for your clients

* Wide choice of promotional and educational materials

* Opportunity of books distribution provided by the company

* 7 types of partnership with INSTAFOREX
Company and partner growth potential

* Bank debit card of INSTAFOREX

This is the highest level of partnership that ensures obtaining an official Introducing Broker status in a certain city or region. Official status implies:

* Placing information about a partner on the website;
* Higher level of trust;
* Additional rewards for local representation of the company. The reward is usually calculated on the basis of the companys turnover in a certain region.
* Placing on INSTAFOREX website as a licensed educational centre;


At present INSTAFOREX Company is one of the most popular and well known Forex brands in the world, which provides high profitability based on the companys development in the region. Besides, the official status available for marketing use in your region the following services are at your disposal:

* Access to the affiliate statistics; up to 2 pips from every clients trade;

* Up to 2 pips commission from each deal made by the client;
* Advanced statistics of your partnership link;
* Instant commission crediting;
* the opportunity to create your own web-site on a separate domain;;
* Percentage from companys turnover among your clients.

In order to become legally competent companys Introducing Broker it is enough just to fill the form online. In a few hours after registration the partnership department manager will contact you to discuss the details of the future partnership.

REGISTER AS Forex Introducing Brokers TODAY