Posted April 17, 2010
During Friday trading, the Greek debt pressures remain and the euro falls while the US dollar gains.
In currency trading on Friday, the euro faced continuous pressures from traders. The concern is that there is no firm understanding of what is occurring in the Greek debt crisis and that is holding investors back from investing in the euro.
The European Union had a meeting in Madrid on Friday that started without any type of indication that an aid package for the struggling Greeks was in the works. The next two days is packed with meetings for European Union financial ministers and central bank governors. Their goal is to consider better fiscal policy coordination between the euro zone members and better economic decisions. As part of that, it is likely that Greece will be a topic of consideration.
Also important in this regard is that the Greeks took steps on Thursday to ask that the European leaders and the International Monetary Fund officials meet on Monday to begin formal discussions on the aid package available to the country, in the event that the country need to turn to these sources for financial aid. The meeting, which is to be held in Athens on Monday, would set the stage for some 30 billion euro or US Dollar 46.49 billion bailout for the country.
Because of these Greek debt concerns, the euro fell again on Friday. In trading, it moved from US $1.3577 in late trading on Friday to $1.3534. There is still concern over whether there is interest in purchasing Greek bonds, though the interest seemed elevated on Friday.
US Economic News
Another factor affecting the currency markets on Friday was data out from the US government. The US housing data that was released helped to strengthen the dollar slightly. The housing data released was rather positive.
Interestingly, the US recovery continues to build, through these data reports, which is increasingly contrasting to the slower growth found in the euro zone. The euro zone is struggling with Greek debt, but it is believed that the Greek troubles are just the start of the euro zone’s problems.
By The Numbers
In trading on Friday, the euro moved from Y 126.31 to Y 125.13. The US Dollar moved from Y 93.04 to Y 92.73 in trading. The UK pound moved to US $1.5415 from US $1.5498 in trading on Thursday. The US dollar also stood at CHF 1.0628 from CHF 1.0563. In the ICE Dollar Index, where the dollar is compared to a basket of currencies at a trade weighted method moved from 80.475 to 80.845.
The Canadian dollar traded at a slightly lower rate on Friday trading. It continued to stay around parity with the US dollar, even though there is more strength in the United States dollar and there was the release of some soft domestic manufacturing data released by the Canadian government. The US Dollar moved from C $1.0022 to C $1.0035 in trading on Friday. The lowest point was $1.0005 during the trading.