Posted October 17, 2011
The Euro dominates as risk improves. US dollar down.
The Monday trading session ended with the euro improving the most it has since January. This came after France and Germany provided a vow to the world regarding the financial problems and struggles of the European Union banks. The two countries stated that they would work to safeguard these banks, which provided enough safety and security to traders that they took to buying back riskier investments for the day. The euro moved to trade at US $ 1.3644 by the end of the trading session in North America, after moving from US $1.3401 at the end of the Friday session. The US dollar index moved the currency from 78.660 at the end of the Friday session to 77.581 by the end of the Monday session. The UK pound moved to trade at US $1.5671 by the end of the day where as it was at US $1.5563 on Friday's close. The US dollar fell against the yen to buy Y 76.70 for the day, down from Y 76.90 the previous Friday.
The Tuesday trading session saw the US dollar give up many of its earlier gains to fall against the euro. The day's trading session was choppy than the previous day. However, traders were watching Slovakia. The country delayed a vote that was in regards to the euro zone's bailout fund. Japan's market was closed for the day and the US bond market was depressed, also encouraging less strength for the US dollar. The euro managed to move up to US $1.3670 during the day, though it hit a low of US $1.3563 during the day's session. The US dollar index moved the currency to 77.549 for the day. The UK pound moved to trade at US $1.5602 for the day while the US dollar bought Y 76.67 for the day.
The Wednesday session saw the euro improve significantly for the day. This came as another round of positive-ness came out from the continent's plans to improve the sovereign debt crisis plaguing it for so many months. The positive attitudes helped to push the investors towards risk, buying up the euro and pushing the US dollar lower. The euro moved to trade at US $1.3796 by the end of the session. The US dollar index moved to trade at 76.977 for the day. The UK pound moved to trade at US $1.5761 and the US dollar bought Y 77.31 by the end of the session.
The next day saw the euro paring its losses. This came after Slovakia approved the expansion of the bailout, called the European Financial Stability Facility. This was the last step in the expansion of the bailout for the European banks. Many see it as the last step in beginning to turn the boat on the debt crisis hurting the continent. The euro moved to trade at US $1.3684. The US dollar index moved to trade at 76.978 for the day. The UK pound moved to US $1.5779. The US dollar purchased Y 76.85 for the day.
To conclude the week, the US dollar fell again against most rivals. This came as more investors were becoming happier about the potential solution to the European debt problems and therefore moved into riskier trades. The euro moved to trade at US $1.3875 for the day. The US dollar index moved to 76.645 for the day as well. The UK pound moved to trade at US $1.5818 for the day. The Japanese yen moved to Y 77.25.