Euro Back Down

Added: February 14, 2011

Euro down to three week lows. US dollar up on Japan info.

US Dollar

During the Monday currency trading session, the US dollar rose to the highest level it has been at against the euro in the last three weeks. This came mainly due to the worries that investors have about the euro zone's continuous debt troubles. Many investors are becoming less optimistic and more skeptical about a solution that has yet to come forward to address and end all of the euro zone's concerns. This pushed investors to the perceived safety of the US dollar during the day's trading session.

The US Dollar Index moved the US dollar from 78.379 at the end of North American trading on Friday to 78.602 by end of the day trading on Monday.

The Euro

The euro moved from US $1.3558 at the end of the trading session on Friday in North America to US $1.3484 by the end of the trading day on Monday. During the trading day, though, the euro managed to fall to US $1.3426. This is the lowest the single currency has been at since the end of January.

As finance ministers meet, more evidence and information comes forward about the euro zone's continued financial problems. Specifically weighing on investors is the euro zone peripheral nation debt concerns. These meetings continue to show that not all leaders in the region are on the same page, which makes more investors concerned about holding onto the euro. Finance ministers met to discuss methods to work to provide strength to the European Financial Stability Facility. This is the euro zone's fund created specifically to help handle the debt problems in the region.

Compromises are necessary, most believe, but are not a fail all solution. Many European officials may view the end result as a non-effective solution overall. One example of these conflicts was a mention by Jean Claude Juncker, who is the euro zone financial minster chairman. He stated that the fund needed not necessarily more money, but for countries like Greece, with significant debt problems, to take bigger budget deficit reduction targets into line.

UK Pound

Against the UK pound, the US dollar did not improved. The US dollar moved to US $1.6036 for the day, which was an improvement for the UK currency of 0.2 percent.

Yen

The US dollar did fall against the Japanese yen during the session as well. It moved from Y 83.46 at the end of the trading session on Friday to Y 83.26 by the end of the Monday session.

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UK Hurting

Posted by Julian Zang at Feb 28, 2011 07:58 PM

You don’t have to worry about the UK interest rates going up. The UK is still hurting from the recession and it’s going to take them as long as the US to dig out. The news that the economy was still shrinking the last quarter of 2010 will hurt the pound in the near term. The U.S. data also showed weak GDP in the 4th quarter but is reported a lot of information this week that will give a better indication. The Middle East crisis isn’t helping either. It’s keeping the markets jumpy though it does look like oil prices are stabilising again.

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Australia Heating Up?

Posted by John Sparks at Feb 28, 2011 07:58 PM

Is inflation right around the corner? I would think it would be. Australia seems to be leading the way too. The Aussie hourly wages are rising and the coal and ore industries are booming which is going to drive prices up. There’s a good chance that the EU will raise rates too though the Ireland election has thrown another kink in the markets. The U.S. is lagging behind everyone which isn’t surprising since unemployment is still so high. No work means no spending. Canada is another country on the list of ones that might possibly raise interest rates. With oil prices rising, Canada’s going to be feeling some inflationary pressures too.