The Euro Moves Up For The Week

Posted May 22, 2010

During the currency week ending on Friday, the euro is able to move up slightly. In six weeks, this marks the first weekly increase for the euro.

 

Euro

 

During the currency trading day on Friday, investors gave the euro the opportunity to bounce back, even if it was just slightly. Investors have been betting against the euro in recent weeks, due to the worries about euro zone debt, economies struggling and changes in the way investments are made. However, on Friday, many started to pare those positions and this helped to force the euro higher for the week.

The euro fell to a low of US $1.2143 during the week, which put it at levels not seen in four years. It moved up as high as US $1.2673 during the week. According to one report by Scoita Capital, Commodity Futures Trading Commission released information that shows that speculative bets against the euro moved from $18 billion two weeks ago to $16.3 billion this week. There is no doubt that the number of people selling against the euro continues to remain high, but there is somewhat of a drop in the fierceness of that concern.

Also notable about the currency was that Germany contributed some euro 750 billion to the European Union rescue plan. This was designed to help the euro.

 

By the Numbers

 

During the trading session on Friday, the euro moved from US $1.2480 as of late Thursday evening to US $1.2583 at the end of the trading session for the week. The euro moved from Y 111.75 to Y 112.80 on Friday. The US dollar moved from Y 89.52 to Y 89.64. The US dollar moved from CHF 1.1514 to CHF 1.1480. The UK pound moved from US $1.4392 to US $1.445 during the day's trading. The ICE Dollar Index moved the US dollar from 85.942 to 85.348.

 

Dollar Rebound

 

Outside of the US dollar, the dollars in Australia and in Canada were able to make some movement occur on Friday. Against the US dollar, the Australian dollar moved 1.2 percent. Against the US dollar, the Canadian dollar moved away from its three month low fall earlier in the day and ended up 0.75 percent against the dollar during the Friday session.

These movements are all movements of risk and concern. The global markets all faced jitters throughout the day, which many believe will continue for some time.

 

Swiss Bank News

 

Also important to mention was the International Monetary Fund's remarks on Friday. It said that the Swiss National Bank should limit the amount of intervention that the central bank has in its foreign exchange markets. This remark was meant for the intervention that the Swiss Bank is believed to be making as a way to fight extraordinary moves in the Swiss franc. Also, the International Monetary Fund also stated that the Swiss bank should not raise interest rates too quickly.

 

While there is no confirmation from the Swiss national bank itself, there is speculation that the Swiss bank has intervened on behalf of the Swiss franc as the weakening euro continues to push the franc higher.

 

 

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