Currency Articles - September 8, 2010 16:12
The euro has dropped sharply in the last 36 hours after new data showed risky debt held by European banks could be a bigger problem than was previously indicated.
The euro and pound have both been in full retreat against the US dollar on Wednesday (August 11). One euro is worth just $1.2845 after trading as high as $1.3226 on Tuesday. A British pound nets $1.5636 after a $1.589 peak Tuesday.
The value of the dollar continues to sink even in the midst of positive earnings reports and a modest improvement in the level of private company hiring during July.
The dollar has been getting hammered in recent weeks as renewed concerns about the economy caused many to get out of long dollar positions. However, several positive earnings reports to start the week have helped give the greenback a boost against most major currencies.
The Euro continues its remarkable rebound against the dollar following a long-term low of $1.1876 in early June. Since that point, the Euro has bounced nearly 11 pips in about six weeks to a current rate of $1.2935.
The Euro and British Pound are among the global currencies making great strides against the slumping US dollar. One Euro is currently worth $1.2554 after reaching as high as $1.2613 in earlier Friday (July 2) trade, while a British Pound is fetching an even $1.52 after peaking at $1.5234 earlier in the day.
The dollar has quietly slipped against the yen in this weekâ€™s currency trade while remaining mostly flat against other major counterparts including the Euro and British Pound. A less than stellar round of economic reports Monday, Tuesday and Wednesday (June 30) morning have cast a dark cloud over optimism for economic recovery.
A slew of mixed economic reports Thursday (June 24) morning reinforced the economic uncertainty of the Federal Reserveâ€™s post-meeting announcements Wednesday in which statements were somewhat pessimistic about the pace of economic recovery.