Dollar is trading in a very tight range like a yo-yo.
July 10 (Bloomberg) -- The yen and Treasuries rose on speculation the global recovery is faltering while stocks fell in Europe after Renault SA Chief Executive Officer Carlos Ghosn ruled out an economic rebound before 2011.
The yen strengthened against all 16 most-traded currencies as of 12:48 p.m. in London, gaining 1.1 percent versus the euro and 0.4 percent compared with the dollar. The Dow Jones Stoxx 600 Index of European shares slipped 0.7 percent, extending its fourth weekly drop, the longest streak since March.
China’s exports declined for an eighth month, the state-run Xinhua News Agency cited customs data as showing, underscoring the economy’s dependence on government spending to boost growth. Renault’s Ghosn said on Europe1 radio that next year will be “as difficult as 2009.” The global economy will shrink 1.4 percent this year before expanding 2.5 percent in 2010, the International Monetary Fund said July 8.
“Divergent indications from data will cloud the picture and keep investors on the defensive in the near term,” Morgan Stanley currency strategists Sophia Drossos in New York and London-based Emma Lawson wrote in a report. “The yen is likely to be the biggest beneficiary in such an environment.”
Futures on the Standard & Poor’s 500 Index retreated 0.8 percent, indicating the benchmark gauge for U.S. equities may extend its fourth straight weekly decline.
