This week has been extremely volatile for the U.S. dollar as different events moved markets sentiment among traders, forcing the dollar slightly down today after it rallied from the lowest level in 2009 versus the euro yesterday.
The U.S. dollar did not have enough strength to continue yesterday’s winning streak as several reports, specially from Europe brought risk appetite once again to markets attracting traders to euro priced assets as Germany, the wealthiest and most relevant economy in the Eurozone, grew further in the third quarter and France also posted positive numbers, indicating that the recovery in the region is solid and backed by fundamental factors. A report in the U.S. is likely to indicate an improved consumer sentiment in the U.S., decreasing attractiveness for safer currencies like the greenback and the yen, making both to rank among the biggest losers today in currency markets.
The German quarterly economic figures were regarded with high expectations among traders, since it was not clear if the past quarter figures would be repeated, causing risk aversion to climb, but after the reports’ released, even if European numbers were not as high as analysts suggested, the fact that figures came positive were already a relief in markets in the region, helping the euro to slash yesterday’s decline partially.
EUR/USD traded at 1.4884 as of 11:34 GMT from 1.4815 hours before the European quarterly reports. AUD/USD gained to 0.9286 from 0.9206.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
Be First to Comment