US big bond issuers MBIA Inc and Ambac Financial witnessed their shares soar up after S&P took positive credit rating actions which boosted the US stock market. Yet the market is still not safe for investment as volatile movements are dominating the marker and until we see a secure direction, the US economy is not considered a safe haven investment.
During the European session, the euro was boosted by news on German IFO which came in higher than expected pushing the currency higher than the dollar. This event was followed by news on the US PPI during the US session which came in higher than expected appreciating the value of the dollar. In turn the dollar gained against the euro. As for now, consumer confidence came lower thane expected which weakened the dollar far lower than the euro pushing the pair to the upside to record at this hour a high of 1.4889 and a low of 1.4777.
Similar to the Euro, the sterling pound gained during the European session as carry trades took place boosting investor appetite for higher-yielding currencies. A few events occurred after that with the US PPI coming in higher than expected boosting the appeal of the dollar and downgrading the pound. As for now, the British pound inclined against the dollar covering losses it made during the earlier session to push the pair at this hour to fetch a high of 1.9753 and a low of 1.9642.
As for the yen, the weak dollar boosted the appeal of the Japanese currency in the eyes of investors and is now trading toward the upside on the back of a weak dollar pushing the pair to the downside to record a low of 107.52 and a high of 108.13
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