Forex News

The U.S. currency finally posted gains versus most of 16 main traded currencies as some investors suggested that the recovery in the North American economy is not compatible with such losses in currency markets, providing support for the greenback to pare gains of most emergent market currencies which were climbing these week.

Several events changed market’s trends today after the European Central Bank Jean-Claude Trichet affirmed that U.S. government should support the strength of its currency, declining attractiveness for the euro, which also posted intense losses versus the pound this week. The U.S. dollar also gained on speculations regarding industrial production in the country, which is likely to increase further from the past month, a significant evidence that economic conditions are improving in the wealthiest country in the world. One of the few currencies that managed to control the dollar’s gains today was the pound, as optimism was renewed in the country after the central bank suggested that its quantitative easing problem will be suspended.

Mixed information is influencing on the volatility of the U.S. dollar, firstly the Federal Reserve affirmed that the fluctuations of the currency are acceptable, but now the European Central Bank starts to show concerns regarding a weakened dollar, causing a nebulous scenario for the greenback short term future.

EUR/USD traded at 1.4879 as of 11:40 GMT from a previous rate of 1.4962 hours earlier. USD/CAD traded at 1.0394 from 1.0312 in the intraday.

If you want to comment on the U.S. dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Earlier News About the U.S. Dollar:

• Dollar Further Down on Interest Rate Expectations (2009-10-14)
• Global Recovery Signs Hurt Dollar (2009-10-08)
• Dollar Loses Slightly on G-7 Comments (2009-10-05)
• Will the Dollar Rebound Before 2009 Ends? (2009-10-03)
• Dollar Climbs on Grim Economic Forecasts (2009-10-02)

This entry was posted on Friday, October 16th, 2009 at 1:45 pm and is filed under U.S. Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.