Posted March 14, 2012
Some weeks are more challenging than others and it certainly seemed like this week would be the challenge for the US dollar. We had lots of good little results on a daily basis, but as you’ll see things changed once Thursday dawned.
If the dollar was looking for a marginal improvement to kick off the week, it got it against the British pound. Here it went from 0.6300 to 0.6313 over the course of the first day. Not much to celebrate, but it was better than nothing. The stronger dollar also meant the price of gold eased a bit, and indeed there were many other stories surrounding the effect of a more powerful US dollar. This would turn out to be an interesting week.
The dollar’s battle against gaining supremacy over the British pound looked a little better today. Here it managed to rise from 0.6313 to 0.6329, so it was going in the right direction for sure. The dollar also showed strength against the Euro for the first day this week, although it had only lost a tiny amount on Monday. At least it was headed back in the right direction today. Elsewhere the New Zealand was having a tough time and dropping in value as a result.
The dollar continued its rise against the British pound today, adding promise to the idea that perhaps this was a good week. It wasn’t great everywhere though, as the Nikkei was reported to be dipping down considerably in all kinds of media outlets. There were worries over the situation in Greece and its debt situation, and whether it would be resolved or not; these were affecting all kinds of currencies and shares; so it was a dramatic day on the news front.
The US dollar let down its guard today and managed to fall from 0.7621 to 0.7551 against the Euro as a result. Not the best day for the dollar, as it fell against the Hong Kong dollar too. Here it went from 7.7635 to 7.7571, so it was clearly not enjoying a raft of good results towards the end of the week. Elsewhere it fell by 0.003 against the British pound, and dropped from 1.2227 to 1.2116 against the New Zealand dollar. If ever there was a day that the US dollar would have liked to wipe out entirely, this was probably the one.
Jobs in the US were seen to be on the rise by the time the week was over, so it looked as though the dollar would end well and negate the bad news of yesterday. It was also helped by a poor close to the week from the Euro, falling as a result of the struggles with the situation in Greece. It was also helped by a weaker Canadian dollar so it managed to spark a better result there too. As always the week was filled with little bits of good and bad news here and there, but it seemed as if the US dollar managed to claw back some of its losses and get a better result in the end.