Currency rates today: euro begins to rise sharply, the dollar surrenders without a fight

Currency rates today: US weakens, euro is stable

In brief: Currency rates today: the euro to dollar rising, the pound continues to struggle for survival.

Currency rates today are volatile and unstable. As a result of the trading day Thursday, the euro was more than 2% foothold against U.S. rival. Such positive dynamics on the single currency was due to successful outcome of the auction on placement of the Spanish government bonds. In particular, despite a recent warning agency Moody `s about a possible downgrade to the Spanish Kingdom, southern Europeans still managed yesterday is relatively easy to draw on the debt market of 3.5 billion euros. Thus, the tension around the Spanish debt problems, and the whole financial system of the region declined slightly, which has stepped up buying euros.

This Thursday we again observed a very untypical for the last few years the dynamics – the decline of the stock and commodity commodity markets, coupled with the weakening dollar. The negative statistics from the U.S. unexpectedly played against U.S. currency. Status in the old days “asset-seekers” would not let U.S. dollar fall in the event publishing unfavorable news U.S. economy. But yesterday the situation was reversed. Report from the Institute of Supply Management (ISM) showed that in June, active in the U.S. manufacturing sector grew less confident pace than in previous months this year. This information, coupled with the increase in the number of requests for unemployment benefits and a third on reduced number of signed contracts for the sale of housing “transferred” to the European market risks in the United States. Now investors are less confident in the rapid restoration of the American economy.

Thus, in a summer trade, traditionally characterized by lower liquidity, some market correlations begin to falter, which leads to a very volatile and unpredictable developments in the forex. Today, all investors’ attention will be drawn to the June report of the American Labor Ministry on the number of new jobs in non-agricultural sectors of the U.S. economy. Given the dynamics of the last few days, now it is possible that the weaker the data can only provoke a new fall of the dollar, while a month earlier negative report contributed to the flight of investors into “safe” U.S. currency. In general, today, on our forecasts, the euro is mainly traded in the range 1,2355-1,2600 dollar.

Ukrainian Globalist
2010-07-02 12:57, Currency news.

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