1st June to 5th June 2009 Euro / USD
Posted by admin | Posted in Weekly and Daily Wake up | Posted on 31-05-2009
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The euro currency is currently at the rate of 1.4154 US Dollar. The current rate was up by 1.08% from the last week’s trading and 7.10% up from the last month’s trading.
The euro currency observed a all time high against the US dollar this week, but the sharp Greenback decline overshadowed the Euro’s relative underperformance against the British Pound and other key counterparts of the euro currency. But the most surprising thing was the year’s low EUR/GBP exchange rate despite which the rate of euro currency surged. Despite the surge, euro is still the third worst performing currency of G10.
Unimpressive European fundamental data certainly did little to bolster the domestic currency’s cause. Negative surprises in German Gross Domestic Product figures and euro zone consumer price index data hardly proved constructive ahead of coming week’s European Central Bank‘s (ECB) decision. Market attention now turns back to the flurry of Central Bank rate announcements in the days ahead. The ECB is widely forecast to leave rates unchanged; the forex traders will pay especially close attention to any noteworthy shifts in rhetoric from regional banks.
The euro zone economic risk remains limited and it will be important to watch developments in the other rising economies of the world. Interest announcements of various banks like Bank of England. Bank of Canada, Reserve Bank of Australia, and US Federal Reserve will interest the forex traders and will have an impact in the trading of euro currency. Though it is difficult to judge what will these interest rate announcements will have an impact on the euro currency, still euro zone is looking forward for it and expecting a positive impact from them.
But these results can have a negative impact on the US dollar. A traditionally safe haven of US Dollar has fallen substantially on vast improvements in the global risk sentiment. The US S&P 500 left the US Dollar at the very bottom of the trading range. Now the major concern of investors is to see how these currencies respond to the various sentiments and how these risk taking trends can be sustained in the face of massive global economic headwinds.
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