23th March to 27th March 2009 Euro / USD
Posted by admin | Posted in Weekly and Daily Wake up | Posted on 24-03-2009
Tags: usd currency
Euro was floating at the rate of 1.3632 USD which is 5.32% up from the last week. It saw noticeable improvement from last week as US dollar suddenly finds itself at a clear disadvantage against key counterparts. Also this week accounted from last month up of 7.72%.
The US Federal Reserve sparked a massive dollar tumble when it announced aggressive quantitative easing measures which were a major setback for US Dollar. The Fed announced that it brought $1.25 trillion dollar in US treasuries and mortgage backed securities which are like printing press of US currency. Moreover the global investors have lost interest in the US currency which has shifted the momentum towards Euro.
Moreover the coming week can be of big advantage to the Euro currency since major European economic data are set to release. German IFO, Consumer Confidence Index and Consumer price Index can affect the general outlook of the currency.
Now the markets are concerned about the devaluation of US currency which is more in supply but has become very poor in value. But the markets are sentiment driven and it could easily pull back dollar due to one back to Euro. The major threat at the moment is the unstable economies of European Union which can collapse at the fall of euro which can be a big advantage to the dollar. Yet the investors believe that Euro will continue to be stable in the near term against US dollar. This week the Euro showed a bearish fundamental outlook which is expected to continue further as well.
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