Debt deals and Eurozone Push Markets

Posted August 08, 2011

US debt concerns, as well as those in euro zone, weigh in. Dollar on a wild ride.

 

 

Monday, August 1

The Monday trading session saw the US dollar fall to a record low against the yen, but there was some earlier improvement for the US dollar as debt deal concerns play a role throughout the day. Investors continue to put all eyes on the movement of the debt concerns in the US, pushing investors towards the Japanese currency for safety. It also moved to record lows against the Swiss franc during the day. This came after a manufacturing report indicated that there was weakness present. The US dollar moved to trade at Y 77.15 by the end of the day, which was a slight from the Y 77.01 it was at the end of the North American trading session on Friday. The US dollar index moved to 74.254 for the day, from 73.846 as of late Friday. The euro moved from US $1.4380 at the end of the Friday session to US $1.4268 by the end of Monday's session.

Tuesday, August 2

With the approval of the US debt bill in Congress on Tuesday, the US dollar saw relief in the markets. It remained weak against the Swiss franc, though, as investors continued to stay within the safe haven. The US dollar index moved to 74.496 for the day, which is a move from 74.443 just before the vote in Congress. The US dollar moved to 76.60 by the end of the session, but hit a record low of 76.40 during the session. The US dollar moved to Y 77.06 for the day.

Wednesday, August 3

The Wednesday trading session saw the fall again after weak data and a stock selloff worried investors again. The dollar extended its losses against the Swiss franc during the day, which came even after Switzerland tried to push the brakes on the country's currency. A week report out from the US's service sector pushed further concerns regarding the US's weak economic growth. The US dollar index moved to 74.035 for the day. The euro moved to US $1.4318 for the day. The US dollar bought Y 76.96  The US dollar also moved to 76.00 centimes against the Swiss currency. However, during the day, the currency did manage to improve by as much as 1.7 percent, but feel after further negative information streamed out.

Thursday, August 4

The US dollar pushes up on Thursday, by 1.6 percent. This comes against the euro after the ECB president, Jean Claude Trichet implied that there was concern for worry about the sovereign debt crisis and its ability to spread into the larger euro zone economies and bond markets. The US dollar managed to move up by the highest amount it has been at since September against the yen. It was evident that the Japanese government intervened in the markets to help to hold off a flight from the Japanese currency during the trading session. The US dollar index moved to 75.015 by the end of the day. The euro fell to US $1.4134. The US dollar moved to Y 79.02 for the day, a marked improvement.

Friday, August 5

By the end of the week, the US dollar was back on the way down, as Italian debt begins to show its face. The US dollar fell against the euro after this information became evident. The US dollar index moved to 74.592 for the day. The euro took the upswing to US $1.4269 for the day. The US dollar bought Y 78.42 and the dollar ended at 76.53 centimes, the Swiss currency.

 

 

 

Comment