Analysis of the American trading session

During the American session on Tuesday, January 2, 2013, the US dollar declined against most of the major market currencies. The main pressure on the US dollar is provided by the expectation of market participants for a slower increase in interest rates this year. Some of the constraining factors for a stronger decline in the US currency were data on business activity in the US. The index of business activity in the manufacturing sector (PMI) in December was 55.1, which is higher than the previous value at 55.0.

The Canadian dollar continued to strengthen its positions against the US dollar, despite a slight decline in oil prices. The growth of the Canadian contributed to the overall weakening of the US currency, as well as positive data on business activity in Canada. The index of business activity in the manufacturing sector (PMI) by RBC in December rose to 54.7, exceeding the previous value at 54.4.

Alexander Sivtsov