Market news
27.05.2011, 10:18

EU focus: Dollar slides, slumps to record low on Swiss franc

The dollar tumbled broadly on Friday after weak U.S. economic data dragged the 10-year Treasury yield down to a six-month low overnight, with the greenback's drop gaining steam on a flurry of stop-loss selling.
The dollar fell across the board, hitting a record low against the Swiss franc and a three-year low versus the New Zealand dollar.
The dollar hit a record low against the Swiss franc of Chf0.8534.
The New Zealand dollar marked a three-year high of $0.8200.
"The dollar has been strong since the start of May but it looks like that outperformance may be coming to a close," said Junya Tanase, foreign exchange strategist at JPMorgan Chase in Tokyo. "Even if Greece's problems continue to weigh on the euro, if the dollar does not strengthen much, then the euro's downside against the dollar may gradually become limited," he said.

The euro has turned higher after its drop this week stalled right near its 100-day moving average and also the bottom of the cloud on daily Ichimoku charts.
The dollar retreated after data on Thursday showed fresh signs of a slowdown in the U.S. labour market and the second estimate of first quarter U.S. growth came in below forecasts, spurring a decline in the 10-year Treasury yield to a six-month low.
"All eyes are on U.S. employment data out next Friday," said Teppei Ino, currency analyst at Bank of Tokyo-Mitsubishi UFJ. "If those figures also come in below the market's expectations, the market may get excited about the possibility of QE3 or some other form of monetary easing, putting more pressure on the dollar," Ino said.

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