Posted June 06, 2011
Greek debt main focus. Poor US economic reports give US dollar its only boost.
The Monday currency session started with the US dollar improving against most of its rival currencies. This came after the euro fell as investors waited to find out the results of the more receive review of Greek fiscal concerns. During the day, the US Dollar Index moved the currency to 74.941 for the day, which is up from the 74.911 level it was at on Friday at the close of business in North American trading. The markets on the day were relatively low since Monday was a holiday both in the United States and in the UK. The euro did manage to move down to US $1.4271 during the session which is a change from the US $1.4294 it was at on Friday. The US dollar moved to Y 80.79 for the day against the Japanese yen compared to the Y 80.87 it was at on Friday. The UK pound moved to US $1.6478, from US $1.6476.
The focus for the Tuesday session was on the Australian dollar. During the day, it moved higher significantly especially during the early portion of the day. This came in as news of the Australian GDP picture showed that it fell less than expected during the first quarter of the year. The Australian dollar moved to buy US $1.0731 during trading hours in Asia. The US Dollar Index moved the current down to 74.491 for the day. The euro was given another boost for the day, while investors continued to hope for and wait for a resolution to the Greek debt concerns paying out and for a new austerity plan to be announced. The euro moved to US $1.4419 for the day as a result. Against the Japanese yen, the US dollar moved to Y 81.34. The UK pound moved to buy US $1.6462 for the day.
During the Wednesday currency trading session, the US dollar gained against the euro as well as the yen and the Swiss franc. All of this occurred as investors sought the safety of the currency. Two reports out of the US indicated there was still weakness in the US jobs market as well as in the manufacturing industry. This put the focus back on the strength of the US recovery. The US Dollar Index moved to 74.740 for the day, though it fell as low as 74.4.611 during the day's trading. Against the Japanese yen, the US dollar moved to buy Y 80.94. The US dollar moved to US $ 1.4362 for the day.
During the Thursday currency trading session, the US dollar fell further. It managed to fall as low as to a three week low against the euro. This came after news reports out of the region noted that some senior euro zone officials may have come to a tentative agreement on how to handle the Greek debt concerns, indicating that an extension to loans for three years may be possible. The US Dollar Index moved to 74.344 for the day while the euro moved to US $1.4484 for the day. The US dollar fell to Y 80.56 during the day as well.
The Friday currency trading session saw the dollar fall again, to the lowest levels it has been at for the month. This came as an announcement of a package to provide aid to Greece came into view. This helped to give the euro zone investors more confidence to invest. The US Dollar Index moved to 73.775 as a result and the euro moved to US $1.4626 for the day. The US dollar moved to buy Y 80.27 as well.