Posted December 17, 2010
US dollar gains against euro. All eyes on European leaders.
The US dollar pared some of its gains during the day as investors watched and wondered about the euro zone central bank leaders who came together to discuss the financial turmoil occurring in the markets. The US dollar was able to put up some gains for the day, but the numbers were smaller against the euro.
Good manufacturing data out of the Philadelphia region of the US helped to spur on some of the risk that investors were willing to take. This helped to encourage investors because it pointed at the US economy recovering, pushing investors to take on the risk of the euro.
The US Dollar Index showed the US dollar moving from 80.190 as of the end of trading in North America to 80.167 by the end of the session on Thursday.
The euro had a tremulous day during the trading session. It was able to recover from some of the losses it saw in early afternoon trading in North America. This drop early in the day’s session came after a news report indicated that some of the diplomats attending the European Union meeting in Brussels had agreed to make changes in the Lisbon Treaty. This particular treaty was designed to help resolve the problems with the euro zone’s sovereign debt concerns.
The European Union leaders are meeting for a two day summit. It is likely that a briefing on the occurrences at that meeting will be made on Friday, after the close of market trading. There are good signs for the euro, though. The currency is withstanding the potential downgrading for the Spanish credit by Moody’s Investors Services. In addition, there is turmoil in Italy that is suggestion further concern for the euro zone. Foreign debt continues to be a major factor affecting the euro as well.
The euro moved from US $1.3229 on Wednesday at the end of the trading session to US $1.3217 by the end of trading in North America.
During the Thursday currency trading session, the UK pound moved up to US $1.5611 for the day against the US dollar. This was an increase of 0.3 percent. This came in after retail sales rose 0.3 percent in the month of November, a report indicated.
The US Dollar fell from Y 84.32 during the Wednesday trading session to Y 84.17 by the end of the session on Thursday.