Forex News

The Canadian dollar pared some of the losses occurred this week as risk appetite rose significantly before the end of this Friday’s session, allowing the loonie and other currencies tied to growth to outperform a weakened U.S. dollar.

The Singapore dollar had one of the best weekly performances since the beginning of the year as optimism towards the domestic and regional economies improved, allowing the Singaporean currency to gain towards the weekend.

The British pound had another week of losses versus currencies from its main trading partners as the emerging budget deficit problems in the country are affecting market confidence among traders, shunning capital from the country towards other more favorable investment opportunities.

The euro had the sharpest gains today this week as speculations that Greece will be bailed out by public lenders associated with worse than expected real state data in the U.S. were supportive for a corrective movement on the euro’s charts.

The U.S. dollar started this Friday’s trading session losing versus most of the 16 main traded currencies as reports in Asia didn’t confirm mediocre forecasts and brought optimism towards the global economic recovery.

The New Zealand dollar has been impacted by a decline in risk appetite globally on growth concerns in Europe and North America, but today, after the country’s trade balance showed a smaller trade deficit, the currency rebounded.

The U.K.’s currency continued to decline as speculations that a new long term crisis is likely to unfold in Britain as concerns regarding the country’s record budget deficit will be a solid obstacle on the way for economic recovery, setting the pound down mainly versus refuge currencies.

The Canadian dollar slid to the lowest level in two weeks versus its U.S. counterpart as pessimism regarding the global economy is affecting the outlook for currencies linked to growth, as its the case of the loonie, since Canada is one of the world’s leading suppliers of commodities.

The yen was one of the biggest winners in the beginning of this Thursday’s session in Asia, as risk aversion surging from Europe is attracting investors to the safety profile of the Japanese currency.

The euro has just touched a new record low for 2010 versus the greenback and the yen on speculations that Greece will suffer its first credit downgrade this year, which would follow the two previously suffered last year as the southern European nation started to agonize with its growing budget deficits.