Saturday 21 May 2011

Forex Trading News – Euro rebounds off 6 week low as commodities gain

six-month low against the Dollar earlier. The Single currency bounced off 1.4122 to rise over 150 pips to 1.4275. The pair opened the Asian session at 1.4237 and hovered around that level, without much volatility.
The appreciation of the greenback was halted as oil bounced back today, influencing  the dollar’s strength since the two usually have an inverse relationship.
“Commodity markets are in the driver’s seat for currency markets,” said Mary Nicola, a New York-based currency strategist at BNP Paribas SA. “We have seen a bounce back in oil today, and so that has affected dollar strength.”
Meanwhile, as investors continued to shed dollar-funded bets on riskier assets Thursday, the Euro seized its chance to edge higher against its main counterparts, even as concerns lingered about the debt crisis in the Eurozone’s fiscally stressed periphery.
However, hawkish comments from European Central Bank officials gave investors high hopes of possible higher rates to come, boosting demand for euros even on a day when demand for other risk-positive currencies was low.
Later in the day, GDP data from major euro zone members including could further boost the common currency.
The International Monetary Fund said on Thursday it still was willing to consider giving Greece more time to repay its bailout loan of 30 billion euros.

Most Read News

No comments:

Post a Comment