Posted January 25, 2011
The US dollar is down versions the euro. Falls against yen as well.
During the Monday currency trading session, the US dollar feel against both the euro and the yen. This occurred as Treasury prices began to recover. In addition to this, the US stock market solidified small gains during the session. This all helped to give currency traders more confidence when moving towards the currencies that are more risky, including the euro. A positive outlook on European debt also helped to encourage investors to move more towards conceived risk.
The US dollar index moved the US dollar from 78.114 as of the end of trading in North America on Friday to 78.013 by the end of the Monday trading session. It feel from 78.431, a high during the trading session.
There were no new releases of economic data out of the United States during the trading day. The Dow Jones Industrial Average moved closer to 12,000 during the trading day. This helped encourage investors across the board to move towards the brink of recovery. All of this encouraged investors to pull away from the US dollar and move towards the risk of the euro. On Tuesday, the United States President is expected to talk about job creation measures in his State of the Union address. This has been the hot point within the market since it is widely believed that the US economy cannot improve without jobs.
During the trading day, the euro fell away from a two month high against the US dollar. This came after the Irish government's weekend collapse occurred. The Euro moved from US $1.3623 at the end of the Friday trading session to US $1.347 by the end of the trading day on Monday in North America. During the day, it moved as high as US $1.3685 which is the highest the currency has been at since the middle of November.
During the weekend, Ireland's political coalition collapsed. This makes a budget in the country less likely, which is worrisome to investors. In order to receive a rescue packaged from the European Union and the International Monetary Fund, the country must submit a budget by November.
Against the Japanese yen, the US dollar also struggled to move higher. It moved from Y 82.69 at the end of the North American trading session on Friday to Y 82.54 by the end of the day on Monday.