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US dollar weakens against the euro
The US dollar weakened against the euro during the Asian trading session on Tuesday. The euro gained as economic figures from two key Eurozone members, France and Germany, were not as bad as expected. The EUR/USD rate at 7:08 AM London time was $1.2363. The British pound also gained by 0.1% against the US dollar to trade at $1.5699. The New Zealand dollar had a similar 0.1% gain and was trading at 81.02 US cents to a New Zealand dollar.
The greenback did however gain in value versus the Japanese yen, with 78.46 yen fetching a US dollar.
Euro strengthens against major currencies
The euro strengthened versus the US dollar, Japanese yen and British pound. This was on the unexpected news that the French economy actually grew and did not contract, and that Germany’s growth was less slow than expected in the second quarter of 2012.
The euro gained by 0.3% versus the US dollar, and was trading at $1.2363. This followed Monday’s 0.4% advance against the US dollar. The EUR/JPY rate was at 96.98 yen, with the yen falling by 0.4%. The British pound, too, weakened versus the euro for a second successive day and was trading at 78.72 pence to a euro. This was a fall of 0.1% for the British pound against the euro.
So far the Eurozone has managed to keep the euro going, without any withdrawal from Greece or Spain. The euro is able to just about hold its own, when better than expected economic figures from member countries are released.
Yen trading lower against currency peers
The Japanese yen was trading with considerable weakness against all its major currency peers, during the Asian session on Tuesday. This was on the back of a rally for Asian stocks as well as an indication from the Bank of Japan’s July meeting minutes that additional stimulus was being considered. The rally of Asian stocks ensured that the demand for safe haven currencies for the yen was reduced.
The USD/JPY rate as of 07:08 AM London time was 78.46, a fall of 0.2% for the yen. Against the euro, the yen fell by 0.4% to trade at 96.98 yen to a euro.
Oil prices rise on possible US crude inventory decline
Oil prices rose on Tuesday, on sentiment that US crude oil inventories may have declined. Oil analysts will be looking for US retail sales data to corroborate if a better employment growth is also leading to greater consumer confidence.
Crude oil for September 2012 delivery on the New York Mercantile Exchange was trading at $93.28 per barrel at 2.53 PM Singapore time. Oil prices are down by 5.7% since the beginning of the year 2012.
Brent crude oil for September 2012 settlement was higher by 29 cents, and was trading at $113.89 per barrel in London’s ICE Futures Europe Exchange. The October 2012 contract for Brent crude was trading at $111.96 per barrel, up by 24 cents.