Gold may struggle to top $1,300 an ounce again as tailwinds from central banks on an easing bent have stalled against the Federal Reserve's resolve.» Read More
The European Central Bank lent commercial banks 75 billion euros ($104 billion) in three-month funds Wednesday, 25 billion euros more than in a previous operation last month, the bank said on its Web site.
The dollar slid to near a record low versus the euro Tuesday, as traders bet a slowing U.S. economy will prompt a Federal Reserve rate cut next week, while the European Central Bank holds steady for some time.
The dollar fell near record lows Monday against the euro, weighed down by last week's disappointing U.S. jobs data and chances that an interest rate cut by the Federal Reserve is on the way.
The dollar slid to a 15-year low against major currencies Friday as data showed U.S. payrolls fell last month for the first time in four years, raising recession fears and pressure for the Federal Reserve to cut interest rates.
Euro-zone interest rates have further to rise, European Central Bank Governing Council member Axel Weber said on Friday, although other policymakers stressed no move is imminent given uncertainty over the credit crunch.
The eurozone finance ministers' chairman said on Friday French President Nicolas Sarkozy was neither noble nor correct to claim some of the credit for the European Central Bank's decision to keep interest rates on hold.
The European Central Bank kept its key monetary policy rate flat at 4% on Thursday due to persistent turbulence in the financial markets because of fears of a spillover of the U.S. subprime crisis.
Another rise in euro-zone interest rates looked assured last month, but the turmoil in the credit markets has brought pressure on European Central Bank President Jean-Claude Trichet to keep rates at 4%.
A sharp drop in investment and government spending more than halved quarterly euro zone growth for April to June, but this is unlikely to stop further ECB interest rate rises as analysts expect the economy to pick up.
The dollar steadied versus the euro and yen on Monday at the start of a busy week for U.S. data which should shed light on the extent to which the credit markets turmoil is taking a toll on growth.
The safe-haven flow that has stabilized the dollar recently should persist next week as investors remain wary of risky assets, extending August's pattern of credit market turmoil feeding global demand for U.S. Treasuries.
The dollar slipped against the yen Friday after President Bush and the head of the Federal Reserve both said they would not rescue speculators ailing from deteriorating lending conditions that could worsen.
Stocks are winding up for a higher open as traders focus on the Fed Chairman Ben Bernanke's Jackson Hole address and President Bush's expected subprime rescue plan for defaulting homeowners. Bernanke's 10 a.m. speech has been the buzz of global markets for more than a week and it is being watched carefully for any clues on how the Fed might react...
The yen rose modestly Thursday, recovering from the previous day's sharp decline, as investors continued a longer-term trend of reducing risky bets in response to troubled credit markets.
The yen gained on Tuesday as investors, fearing tougher credit conditions will crimp global economic growth, bought the lower-yielding Japanese currency and sold riskier assets.
The dollar rose against the euro, but fell against the yen Monday, as investors attempted to minimize exposure to risky assets amid lingering fears of a global credit crisis.
The dollar fell against most major currencies Friday, despite strong U.S. economic data, as calmer credit markets sparked renewed interest in riskier overseas assets.
Euro zone private sector growth cooled in August as factory order growth hit its weakest since late 2005 and a credit squeeze in financial markets bruised service sector confidence, key data showed on Friday.
Global financial turmoil prompted the Bank of Japan to hold rates on Thursday and warn that the tremors would take time to settle, and the European Central Bank was inundated with demand at a new money market tender.
A surge in investors' appetite for higher-yielding currencies and assets pushed the yen towards its biggest daily and weekly losses against several currencies for years on Thursday.