The US dollar continued to offer stubborn resistance, not wanting to go down from a 2-month high against the Yen and regaining the won by the Euro levels. The EUR/USD pair closed the trades at the level of 1.4372 yesterday. The high was fixed at 1.4412, the low amounted to 1.4352. On Monday the market activity was lower than usual, because many players decided not to take part in trades in between Christmas and New Year,whereas the markets in Great Britain, Ireland, Australia and New Zealand were closed on the occasion of the public holiday. This Monday was the last working day in 2009 for many Japanese companies, which start to work again on the 4th of January, 2010.
Currently, the Japanese companies are following whether the dollar continues its growth against the Yen in the next month after the USD/JPY pair could restore from a 14-year low, reached in November. The trades were quiet: a lot of traders have not entered in to the Australian and British markets again after Christmas. During last few weeks the dollar has been increasing steadily due to the fact that investors believed in the recovery of the American economy in 2010. The released on Monday data about the Christmas sales in the USA gives ground to hope for consumers sentiment improvement in December. The related information will be announced on Tuesday and it is able to support the US dollar.
Additionally, Standard & Poor\'s/Case-Shiller Home Price Index (Oct) will be published on Tuesday. According to the traders opinion, the tendency of the yield increase of the U.S. Treasury long-term bonds favors the dollar\'s growth against the Yen. “Considering the fact that the profitability of the US Treasury securities is rising, the USD/JPY pair may upturn to 92,5 Yen for the dollar in a year”,- said Tosihiko Sakai from Mitsubishi UFJ Trust Bank. On Monday the American share market renewed the high of 2009, following the stocks of retail trade companies, having come up on the back of positive Christmas sales data. Dow Jones industrial average index raised by 0,26% to 10.547,08 points. The wider Standard & Poor\'s 500 index climbed by 0,12% to 1.127,78 pips. The technological Nasdaq Composite index added 0,24% to 2.291,08 points.
Analyst: N. Grigorjeva.
