Posted November 14, 2011
Unease reigns in markets. Focus on Greece debt package major sticking point.
The Monday trading session saw the US dollar jump though it did not manage to improve enough to have a positive October session. In addition, the Japanese financial ministers intervened in the markets to help pull down the yen's value, though the amount of the sale of yen on the market was not disclosed. This pushed the US dollar and the euro up against the yen. Worries amid the US policy makers and struggling economy continued to hold back the markets still. The US dollar moved from Y 75.77 in North American trading on Friday to Y 79.53 by the end of the session on Monday. The euro moved from US $1.4155 as of the close of business Friday to US $1.3908 by the end of the Monday session. The US dollar index moved from 75.063 at the end of the Friday session to 76.243 for the day.
The Tuesday trading session saw the euro fall to the lowest levels it has been at in the last month. This came as the Greek prime minister decided to seek a referendum on the Greece bailout. This caused a surge of fears in the markets again, all due to the worries that the European debt crisis was still a problem that did not have a solution. The worry investors have is that the financial crisis will spin out of control. As a result, the euro moved to trade at US $1.3712 by the end of the North American trading session. The US dollar index moved to trade at 77.298 by the end of the session. The US dollar moved to trade at Y 78.34 by the end of the session.
The Wednesday session saw the US dollar pare its losses against many currencies after reports indicated the international bailout funds put into place for Greece will be held up until after the Greeks referendum vote occurred. This referendum was brought up by the Greek government just this week. In addition, the Federal Reserve in the US added to the mix as it sounded less worried than it had and less likely to further ease monetary policy. The US dollar index moved the currency to 77.096 by the end of the day. The euro moved to trade at US $1.3745. The US dollar moved to trade at Y 78.10 by the end of the session.
During the trading session on Thursday, the euro managed a rebound from its negative position though it did not add enough. It remained for the day well off the highs against the US dollar. Investors remained cautious and concerned about the Greek financial crisis, including reports that the country was planning to abandon its plans to hold a referendum on the financial package put into place for the country, one which the country originally agreed to. In addition, added risk was added to the market when the new European Central Bank President noted that the European economy was still in poor condition. The euro moved to trade at US $1.3839 for the day. The US dollar index moved to trade at 76.645 for the day as well. The Japanese currency traded at Y 78.06 against the US dollar.
The Friday trading session saw the US dollar improve against euro as all attention turned back to the European financial situation. A report out of the US payrolls did not provide any positive or negative information. The euro moved to trade at US $1.3770. The US dollar index moved to trade at 76.984 for the day. The US dollar moved to trade at Y 78.17 for the day.