Euro Focus On Debt Concerns

Posted May 17, 2011

A week marred with debt concerns. US dollar improves as euro falls.

 

 

Monday

During the previous session, the euro fell to new lows, but the Monday currency trading session showed the euro recovering after touching those two week lows. For the month of May, the euro is down, still, by 3.1 percent. During the day, the euro did manage to fall against most of its major rivals, but did recover some after the Standards & Poor announcement that it was lowering the credit rating on Greece from a B to a BB minus. This pushed debt concerns to the height during the day, causing concern that the European officials will need to change the terms of the bailout agreement. The euro fell as low as US $1.4253 during the day, but closed out the day in New York trading at US $1.4349. The euro fell against the yen and the UK pound as well. The US Dollar Index positioned the currency at 74.596, which is off from the 74.790 level it was at during the Friday trading session.

Tuesday

During the Tuesday currency trading session, the US dollar fell against the euro, with all eyes focused on Greece. In addition, the Chinese trade helped to boost the yuan weakness, some experts believe. The US dollar fell against the euro during late in the day trading, only after the euro fell to three week lows as more information on Greece restructuring was presented. The euro moved to US $1.4405 for the day, though it managed to fall to US $1.4269 during the day. The US Dollar Index moved the currency to 74.569 at the end of the New York session, after hitting 75. The Japanese yen also played a role during the day. The US dollar moved to Y 80.81 by the end of the session.

Wednesday

The Wednesday trading session marked another drop in the value of the euro. The US dollar strengthened against the euro as more worries and strikes occurring in Greece put concern on investor shoulders. Concerns about the Portuguese banks also pushed more concern into the view of traders. All of this put the focus on the euro zone, which continues to have trouble getting out of its current sovereign debt problems. For the day, the US Dollar Index moved the currecny to 75.259 during the day. The US Dollar moved to 80.98 yen. Against the euro, the US dollar moved to US $1.4211.

Thursday

The Thursday trading session saw the US dollar fall lower against the euro and other currencies, but not until after it hit the highest level it has been at against the euro in more than six weeks. The commodity market helped this as it showed signs of strength. Equities turned higher and that pushed the value of the US dollar lower. The euro's recovery was less about the currency's value and more about taking on risk. The US Dollar Index moved the currency to 75.199 for the day. The euro moved to US $1.4242 for the day. The Japanese yen moved to Y 80.88 by the end of the New York trading session.

Friday

Friday marked more expansion for the US dollar. It pushed the euro back to the lowest level it has been at in about six weeks. The concern for the day was back on Greece's debt problems, and the concerns over falling commodities also weighed in on investors. The US Dollar Index moved the currency to 75.761 for the day. The euro moved to US $1.4111 for the day, by the end of the trading session and the US dollar moved to Y 80.82 overall.

 

 

 

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