By Masaki Kondo and Kristine Aquino -
Aug 28, 2012 8:42 AM GMT+0800
The dollar remained higher following
a two-day advance against the yen ahead of U.S. reports that
economists say will point to improvement in consumer sentiment
and regional manufacturing.
The Dollar Index maintained a gain before Federal Reserve Chairman Ben S. Bernanke delivers a speech on Aug. 31 in Jackson Hole, Wyoming as investors are weighing whether the central bank will embark on another round of bond purchases, or quantitative easing. Demand for the euro was limited ahead of German data forecast to show consumer sentiment will fall for the first time in three months.
“The market may be open for disappointment” at Jackson Hole, said Derek Mumford, a director in Sydney at Rochford Capital, a currency risk-management company. “Assuming there won’t be significant quantitative easing, then the U.S. dollar could have quite a strong performance in the next couple of months.”
The dollar traded at 78.75 as of 9:21 a.m. in Tokyo after rising 0.3 percent in the past two sessions to 78.74 yesterday. The euro was at $1.2497 after losing 0.5 percent since Aug. 23 to $1.2499. It bought 98.41 yen from 98.43.
The Dollar Index (DXY), which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six U.S. trading partners, was little changed at 81.693 following a two- day advance of 0.4 percent.
A gauge of U.S. consumer confidence probably rose to 66 in August, the highest since April, from 65.9 last month, a separate poll of economists shows. The Conference Board is scheduled to release the data today.
Bernanke probably won’t use his Aug. 31 speech at the Kansas City Fed’s annual economic symposium to suggest a third round of bond buying is at hand, according to economists including Michael Feroli at JPMorgan Chase & Co. and James O’Sullivan at High Frequency Economics. Fed policy makers, who meet next on Sept. 12-13, are monitoring unemployment and other data and have been divided about whether to spur expansion.
The Fed chairman’s speech will precede a Sept. 7 report from the Labor Department on U.S. jobs this month.
“Bernanke is likely to hold off any major decision till the U.S. employment statistics on Sept. 7,” said Noriaki Murao, New York-based managing director of the marketing group at the Bank of Tokyo-Mitsubishi UFJ Ltd., a unit of Japan’s biggest financial group by market value. “I’m doubtful that he will say anything concrete on Aug. 31.”
GfK’s index of German consumer sentiment is likely to decline to 5.8 in September from 5.9 this month, according to economist projections taken before the market research company reports the figure today.
To contact the reporters on this story: Masaki Kondo in Singapore at mkondo3@bloomberg.net; Kristine Aquino in Singapore at kaquino1@bloomberg.net
To contact the editor responsible for this story: Garfield Reynolds at greynolds1@bloomberg.net
The Dollar Index maintained a gain before Federal Reserve Chairman Ben S. Bernanke delivers a speech on Aug. 31 in Jackson Hole, Wyoming as investors are weighing whether the central bank will embark on another round of bond purchases, or quantitative easing. Demand for the euro was limited ahead of German data forecast to show consumer sentiment will fall for the first time in three months.
“The market may be open for disappointment” at Jackson Hole, said Derek Mumford, a director in Sydney at Rochford Capital, a currency risk-management company. “Assuming there won’t be significant quantitative easing, then the U.S. dollar could have quite a strong performance in the next couple of months.”
The dollar traded at 78.75 as of 9:21 a.m. in Tokyo after rising 0.3 percent in the past two sessions to 78.74 yesterday. The euro was at $1.2497 after losing 0.5 percent since Aug. 23 to $1.2499. It bought 98.41 yen from 98.43.
The Dollar Index (DXY), which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six U.S. trading partners, was little changed at 81.693 following a two- day advance of 0.4 percent.
Confidence Improving
The Fed Bank of Richmond is forecast to say today that its factory index for the region advanced to minus 10 this month from minus 17 in July, according to the median estimate of economists surveyed by Bloomberg News. A reading of less than zero signals contraction.A gauge of U.S. consumer confidence probably rose to 66 in August, the highest since April, from 65.9 last month, a separate poll of economists shows. The Conference Board is scheduled to release the data today.
Bernanke probably won’t use his Aug. 31 speech at the Kansas City Fed’s annual economic symposium to suggest a third round of bond buying is at hand, according to economists including Michael Feroli at JPMorgan Chase & Co. and James O’Sullivan at High Frequency Economics. Fed policy makers, who meet next on Sept. 12-13, are monitoring unemployment and other data and have been divided about whether to spur expansion.
The Fed chairman’s speech will precede a Sept. 7 report from the Labor Department on U.S. jobs this month.
“Bernanke is likely to hold off any major decision till the U.S. employment statistics on Sept. 7,” said Noriaki Murao, New York-based managing director of the marketing group at the Bank of Tokyo-Mitsubishi UFJ Ltd., a unit of Japan’s biggest financial group by market value. “I’m doubtful that he will say anything concrete on Aug. 31.”
GfK’s index of German consumer sentiment is likely to decline to 5.8 in September from 5.9 this month, according to economist projections taken before the market research company reports the figure today.
To contact the reporters on this story: Masaki Kondo in Singapore at mkondo3@bloomberg.net; Kristine Aquino in Singapore at kaquino1@bloomberg.net
To contact the editor responsible for this story: Garfield Reynolds at greynolds1@bloomberg.net
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