Posted May 01, 2010
In trading on Friday, the euro moved up against the US dollar, but lost some of those gains as the day went on. The markets seem to be waiting for more news on the Greek bailout plan.
Euro and Greece
In currency trading, the traders looked for news about the Greek debt bailout. News of a special meeting planned for Sunday seemed to temper the investing in the euro during the day’s trading. Before that point, news that the details of the Greek debt package had been worked out seemed to help encourage investors. Jose Manuel Barroso, president of the European Commission said that the deal would be finalized very soon, even within the next few days. The Greeks are set to receive a EURO 24 billion austerity package.
However, most investors will be on hold until at least Tuesday. Monday is a holiday throughout many European countries and Friday marks the end of the month. This, too, seemed to pull back on the euro’s progress during the day.
Investors are turning back to the euro now that it looks like an aid package is in place for the country of Greece. The euro, which is seen as a riskier investment compared to the US dollar and the yen, did see some growth. Some investors believe that the next few weeks will hold improvements in the euro’s position. However, if the currency markets face more worries about the Greek debt problems, the euro is likely to feel this as investors head to the US dollar and yen for safety.
By The Numbers
In trading by the end of the day Friday, the euro moved from US $1.323 to US $1.3280. The US dollar moved from Y 94.07 on Thursday late in the day to Y 94.25. The euro moved from Y 124.53 to Y 125.36 in trading. The US Dollar stood at CHF 1.0797 from CHF 1.0830. The UK pound moved from US $1.5323 to US $1.5285.
The Canadian dollar moved during the day’s trading as well. The US dollar moved from C $1.0064 to C $1.0043 at the beginning of the day to C $1.0167 by the end of trading on Friday. It fell as low as C $1.0018 in the night before trading.
In other currency news, the Canadian dollar ended significantly lower on Friday. This occurred mainly due to the end of the month. There is evidence of solid domestic growth out of the country, though. Most investors were not concerned with this movement stating that it was nothing more than the positioning of investors ahead of the weekend.
The week has been a rough one for the Brazilian real. This trend continued in trading on Friday as well. the Brazilian real closed down for the day. The central bank intervened twice during the session as a way of helping to stem the problem.
The real moved from BRL 1.7302 at the close of trading on Thursday to BRL 1.7370 to the dollar by the end of business on Friday.