The dollar started this week losing versus the euro and the pound after speculations that Group of 7 central bankers would provide statements supporting the dollar were not confirmed, erasing last week gains and setting the dollar to a bearish scenario again.
Last week was marked by a good U.S. dollar performance as a G-7 meeting was expect to stress the importance of a strong greenback, as it could provide solid competitiveness for exporters around the world, specially in the Eurozone, where they have been struggling to find costumers due to the current euro’s levels. Group of 7 policy makers did not signaled that they support a strong dollar, indicating that natural market regulations are more welcome than disorderly swings in currency markets, setting the U.S. currency back to a bearish scenario, where the Australian dollar also gained significantly this Monday.
The shift in sentiment towards the dollar may set the U.S. currency to a new losing streak towards record lows according to some analysts, but even if the scenario is not the most optimistic for the greenback, other currencies, with a few exceptions, are still struggling to find their way out of recession, so the dollar bearish scenario may not impact the currency as much as it would in normal conditions, since most parts of the world are still facing a recession period.
EUR/USD traded at 1.4626 as of 11:02 GMT from an opening rate of 1.4595 yesterday. AUD/USD traded at 0.8745 from 0.8670.
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