Euro Falls Back Against Dollar
During the currency trading session on Friday, the dollar improved against the euro. The euro did fall during the session on Friday. It managed to hold on to the gains it saw throughout the week, though.
Although the euro fell modestly for the day, investors still consider it a favorable investment. Over the course of the week, the euro managed to gain. Investors do not believe that the loss of momentum in the euro was due to risk aversion. The movements of the euro over the past week have showed that investors are paring their bearish moves and that their overall impression of the euro has improved, even in terms of the euro zone’s debt concerns. Those who are short term investors are moving away from their anti euro positions.
Consider the net speculative bets. Those against the euro had a value of $6 billion at 38,900, at the week ending Tuesday. That is in comparison to the same figures for last week, which saw such bets at 73,700 with a value of $11.2 billion. On May 11th of this year, these bets reached an all time high of 113,890.
By The Numbers
During the trading session on Friday, the euro managed to move from US $1.2703 as of late Thursday to US $1.2640. The euro moved from Y 112.27 to Y 112.07. The US dollar moved from Y 88.38 to Y 88.65. The US dollar moved from CHF 1.0572 to CHF 1.0559. The UK pound moved from US $1.5155 to US $1.5066. The ICE Dollar Index moved the US dollar from 83.981 to 83.914.
Also notable during the trading session on Friday was the changes in the Canadian dollar. The Canadian dollar improved against the US dollar. This occurred mainly because the Canadian data reports show that the economy improved by adding some 93,2000 jobs for the month of June. That was significantly higher than the pace that investors were moving at, which had the country’s job numbers improving by only 15,000. This also helped to improve the jobless rate in the country, which for the month of June fell to 18 month lows at 7.9 percent. It was expected to remain at the same level as May, which was 8.1 percent.
The Bank of Canada is likely to continue to raise key lending terms as the economy continues to add jobs at such a significant rate. The Bank of Canada is scheduled to make its next decision on July 20th.
Also notable for the trading session on Friday was the Korean won’s movement. It moved higher significantly against the US dollar after the Bank of Korea raised its key interest rates from the record low positions they had been at. The Bank of Korean moved the rate up by 0.25 percent to 2.25 percent. Against the won, the US dollar fell by 0.8 percent on the day. Numerous other Asian banks have also increased these key lending rates.