Posted June 06, 2011
Euro starts week slow. US dollar unable to hold onto gains.
The currency market started the week with the US dollar gaining against the euro, which caused the euro to fall to March lows as a direct result. This came as the credit rating agency Standard & Poor cut the outlook for Italy significantly. It also was hurt by the elections held over the weekend in Spain that worried many that the country was pushing on too much debt. For the day, the euro moved as low as US $1.3969 during the session but then trimmed back those losses to close at US $1.406 for the day, which is a move from the US $1.4194 it was at at the close of business on Friday in North American trading. The US Dollar Index moved the currency to 76.135 for the day, which is a change from 75.441 it stood at on Friday. The UK pound moved to US $1.6110 which is a fall from the US $1.6248 it was at on Friday. The US dollar moved up against the Japanese yen as well, moving to Y 81.92 from Y 81.64 for the day.
The Tuesday currency trading session saw the US dollar falling against most of its major rivals during the day. This came after there was seemingly renewed strength in Greece about its debt concerns. Investors were less focused on the worries that the debt crisis occurring there would spread to Italy and to Spain. As a result the US Dollar Index moved the currency to 75.914 for the day. The euro moved up to US $1.4102 for the day. The euro was boosted by a stronger than expected report out about the German business confidence levels. Against the yen, the US dollar moved to buy Y 81.90 for the day. The UK pound moved to US $1.6177 for the day.
The Wednesday trading session saw the euro paring some of its losses against the US dollar. It was able to get as high as US $1.41 during the day. The move towards strength for the currency came as one clearing house raised its margin requirement for the Irish debt. Investors are worried about their potential Irish debt losses. The euro moved to US $1.4098 for the day, though it managed to reach US $1.4118 during the session. The US Dollar Index moved to 75.847 for the day as well. The UK pound moved to US $1.6287 for the day while the US dollar moved to Y 82 against the Japanese yen.
The euro rose against the US dollar during Thursday's currency trading session. This came after reports out of China indicated that investors in Asia are looking to purchase the debt from Portugal, another country with worried sovereign debt levels that much of the EU is concerned about. The euro moved to US $1.4128 for the day while the US Dollar Index moved the currency to 75.598 for the day as well. The US dollar moved to Y 81.339 for the day, another fall and the UK pound improved to US $1.6385.
Friday saw the US dollar falling below the 75 point level for the first time in the last two weeks. This came after data from the Federal Reserve indicated the Reserve may delay a rate hike even longer, which many investors are waiting to happen. The US Dollar Index moved the current to 74.911 for the day. The euro moved to US $1.4294 for the day. Against the Japanese yen, the US dollar moved to Y 80.87.