Posted October 03, 2011
Euro ends quarter down. US dollar plays safe haven status.
The weak of currency trading starts with the dollar struggling. The euro managed to gain some strength during the trading session, due to the worries of investors and the movements of the US stock market. Some negative information came to light, including the European officials are still looking for the right solution for Greek debt – something that would continue to plaque the week's movements. EU officials were considering a broad plan to manage the debt to ensure that it would not move to other euro zone banks. The euro moved from US $1.3493 at the end of the trading session in North Amrica on Friday to US $1.3497 by the close of business on Monday. The UK pound moved from US $ 1.5441 on Friday to US $ 1.5541 by the end of the Monday session. The US dollar index moved the currency from a position of 78.378 on Friday to 78.213 by Monday's close. The US dollar moved to trade at Y 76.48 by the close on Monday from Y 76.62 on Friday.
European hopes push the euro up during the Tuesday trading session. The US dollar feel against the euro as the global stocks improved. This came after specultation that there was a decisive action in line for the debt crisis spreading through the euro zone. This pushed investors to the riskier currency of the euro, and away from the perceived safe haven status the US dollar has held recently. For the day, the US dollar index moved to trade at 77.679 by the close of business on Tuesday in North America. The euro had moved to US $ 1.3607. The UK pound moved to trade at US $ 1.531. The US dollar moved to Y 76.71 by the close of business.
Wednesday saw the euro fall while the US dollar improved. European policy makers continued to struggle over finding the right solution for the European debt problems, namely those in Greece. The fight came as Greek protestors continued to build and the IMF, European Central Bank and the European Union tried to find equal footing. The US dollar moved to trade at 77.995 by the end of the session. The euro moved to trade at US $ 1.3551 by the end of the North American trading session. The US dollar moved to Y 76.57. The UK pound moved to buy US $ 1.5582.
Risk was on the minds of investors, but this time, they were looking for the rewards that come with it. The US dollar struggled during the session as the euro managed to improve during the Thursday trading session. The day was all about testing the waters to push to take advantage of risk. US economic data seemed positive and US jobless claims dropped by 37,000 in the previous week. That pushed traders to move into risk. The US dollar index moved to trade at 77.917 while the euro moved to trade at US $ 1.3584. The US dollar moved to Y 76.81 for the day while the UK pound moved to buy US $ 1.5614 for the day.
The session closed on Friday with the US dollar up against the euro as European Union leaders not moving as fast as investors, and the world, had hoped. This pushed the euro to end a third quarter with a 7.5 percent loss over the US currency. The euro moved to trade at US $ 1.3409. The US dollar index moved to 78.647. The UK pound moved to US $ 1.5632. The UK pound moved to US $ 1.5632.