Sovereign Debt Continues to Push Safe Havens Up

Posted October 11, 2011

US dollar rises as investors worry about risk of euro. Markets watch ECB.

 

 

Monday, October 3

The Monday trading session saw the US dollar climb to the highest level it has been at since January all coming from the sell off of euros. Investors are moving towards safety with the still present risks and worries about the European Union's debt problems, specifically those of Greece. This pushed the US dollar index up to 79.577 by the end of the trading session in New York on Monday. This is up from 78.647 at the end of the session on Friday, though it managed to reach as high as 79.614 during the day's trading. The euro moved from US $1.3409 in late day trading in North America on Friday to US $1.3182 by the end of Monday's session. The UK pound moved down 0.9 percent to US $1.545. The Japanese yen moved as well. The US dollar moved lower by 0.47 percent to Y 76.65 Japanese yen.

Tuesday, October 4

The Tuesday session saw the US dollar fall during the day as the euro managed to stage a recovery. This came after a report release that shows that European Union officials are moving to coordinate the actions necessary to help recapitalize the European Union's financial system. This gave investors hope for a resolution. The US dollar index moved to 78.999 by the end of trading in North America. The euro moved to end the day at US $ 1.337 for the day. The UK pound moved to US $ 1.5481. The US dollar traded at Y 76.83 by the end of the Tuesday session.

Wednesday, October 5

On Wednesday, the US dollar fell a bit more, though to a modest level. This came as the US stocks improved on the day. The stocks reacted in the US to better economic data released during the trading session. This pushed investors back into the risk of the euro and improved the risk sentiment in the marketplace. The US dollar index moved to 78.968 by the end of the Tuesday trading session. The euro traded at US $ 1.3347 by the end of the day. The UK pound moved to trade at US $1.5466. The US dollar traded at Y 76.78 for the day as well.

Thursday, October 6

The US dollar took to a slide during the Thursday trading session. This occurred as the European Central Bank restarts its operations. This pushes the UK pound down by one full percent on quantitative easing. ECB president, Jean Claude Trichet stated that the central bank would begin to resume the program it was running to buy covered bonds and to continue to offer longer term financing operations. These two things helped to add worry to the markets. European debt concerns continue to shake and rattle the markets. The US dollar index moved to 78.611 by the end of the session. The euro moved to US $ 1.3434. The UK pound moved to trade at US $1.5438 for the day. The US dollar bought Y 79.63.

Friday, October 7

The Friday session saw the US dollar improve on the euro after Fitch Ratings pushed Italy and Spain's rating lower. Sovereign debt continues to plague the markets and is causing numerous risk aversion methods in the markets. The US dollar index moved to trade at 78.660 by the end of the session. The euro moved to US $1.3401 for the day. The UK pound moved to US $1.5563. The US dollar moved to buy Y 76.90 by the end of the Friday trading session in New York.

 

 

 

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