The US Dollar has spent a second day weaker against the Pound and is little moved against the Euro after demand for the safe haven for the ‘Greenback’ declined as the threat of military action against Syria faded.
A proposal by Russia to confiscate Syria’s stockpiles of chemical weapons is under consideration by the United States and could potentially indefinitely postpone any military action against the Assad regime. It is possible that US President, Barack Obama would put plans for a military strike against Syria on hold if the country agrees to the Russians proposal to place its chemical weapons under international control, The proposal took one step nearer to be coming to fruition after Damascus said that it would accept.
France meanwhile has gone to the United Nations to propose a resolution to the UN Security Council aimed at forcing the Syrian regime to make public the extent of its chemical weapons programme and to place it under the control of the wider international community and dismantle it.
“It seems like the US is considering other options other than striking, mainly that Russian proposal and I think that’s giving the markets more comfort. In terms of the effect on the Dollar, if that situation intensifies then you’re going to see safe-haven buying” said a foreign exchange strategist at Mizuho Bank.
Thursday sees the release of a number of important data reports for the US economy, among them initial jobless claims and continuing jobless claims data. If the data shows a strong improvement then last week’s disappointing jobs data could be forgotten and lead to a strengthening of the Dollar.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6371
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7544
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0808
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.9458
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0368
(Correct as of 14:50 pm GMT)
Safe haven demand also faded after reports on industrial production and retail sales from China added to signs that the world’s second largest economy is on track to make a strong recovery from a recent slowdown. Data released earlier in the session showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production rose more than forecast last month.
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