Сurrency exchange rates today: one minimum is replaced by the other maximum

Exchange rates change vector today

In brief: The level of confidence in the euro is at its lowest level in the history of the single European currency. Exchange rate today was extremely unstable.

The currency exchange rates today are very unstable. “You have to stay in short positions on the euro against the dollar, as there is no positive news from Europe” – this opinion was widely spread among traders at the time of completion of trading in New York on Monday. In finalizing the trading day European currency remained under pressure and tested against the U.S. dollar four-year lows at 1.1875/80 area. A slight recovery towards the end of the day allowed the euro to rise only slightly above the 1.1900 figure. Also during the day could be seen strong demand for gold and U.S. Treasury bonds.

Late Monday night European finance ministers in Luxembourg were able to agree on key details of the program within the established European Fund for financial stability (EFSF – European Financial Stability Facility), as a limited liability company under the laws of Luxembourg. Stockholders EFSF will be 16 states that are members of the eurozone. The program will be used to issue bonds, and in this manner will be used to provide countries with the euro area is in need of financial assistance, funds amounting to 440 billion euro. However, despite this news, the European currency failed to restore more or less significant part of its previously acquired losses. The market participants are skeptical that obtained in the framework of the meeting of finance ministers result could lead to a real narrowing of spreads. Instead of a positive reaction the players remain of the opinion that the European currency will reach the new minimum value against the dollar, as well as the Japanese currency.

Anrey Torbinski
2010-06-08 03:33, Currency news.

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