Forex News

The U.S. currency is set to another weekly devaluation versus the euro and most high-yielding currencies as risk appetite remained strong during most of this week’s session, forcing the dollar down as investors attempt to reach higher profits overseas.

The greenback remained unattractive this Friday before a report that is likely to show that jobs decreased at the slowest pace in more than a year in the United States, indicating an eventual shift in employment figures perceived with optimism by currency traders that abandon the relative safety of the dollar to purchase higher-yielding currencies as equities markets climb and demand for commodities rise. The euro touched the highest level in 2009 once again versus the dollar as German growth forecasts were revised up and stimulus measures to help the Eurozone to emerge from recession are likely to be lifted off in the following months, indicating Europe’s strong resilience and helping the bloc’s common currency to outperform the greenback for another week.

A positive employment report is likely to set the dollar down even further as optimism reflects in risk appetite among traders, according to analysts. Even if the dollar is still on a downtrend, some specialists start to doubt that this losing streak may be entering its final days, as the euro could be overpriced.

EUR/USD traded at 1.5071 as of 12:10 GMT from a previous rate of 1.5116 yesterday.

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.

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This entry was posted on Friday, December 4th, 2009 at 2:17 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.