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USD Rallies Against Majors

Friday, August 20th, 2010

New York 8-20-10

The euro fell to the lowest level in five weeks against the dollar after council member Axel Weber said the region’s economy may need help from the central bank through the end of the year.

The shared currency dropped to the least since July 1 versus the Swiss franc after Weber told Bloomberg Television the ECB should assist banks to prevent year-end liquidity tensions. The yen headed for a weekly gain versus 15 of its 16 major counterparts on signs the global economic recovery is slowing, boosting demand for the currency as a refuge.

“They’re interpreting the comments as suggesting there is more ambiguity about how the ECB will respond down the road,” said Steven Englander, head of Group of 10 currency strategy at Citigroup Inc. in New York. “They’re nervous that the pragmatism may disappear down the road and that is generating that move in the euro.”

The euro fell 1.1 percent to $1.2683 as of 10:36 a.m. in New York, after touching $1.2673, the weakest since July 13. Japan’s currency was at 108.71 per euro from 109.49 in New York yesterday, after reaching 108.26, the strongest since July 1. The euro traded at 1.3171 francs from 1.3233 francs yesterday, after touching 1.3140 francs. The yen fell 0.3 percent to 85.68 per dollar.

Bloomberg By Catarina Saraiva and Bo Nielsen

Aud-Usd Quiet in Pre Fomc Dealings.

Monday, August 9th, 2010

New York 8-9-10
The Aud-Usd fell back from London session highs as we get closer to the FOMC rate decision due out Tuesday which for most will likely be a non event.

“There is a strong chance that FOMC officials are fretful over delivering a shot to the foot by announcing new measures now,” he said. “To do so would capitulate along with other gloomy forecasters expecting the economy to fall off a cliff.”

Data on Friday showed that overall U.S. non-farm payrolls fell 131,000 in July, while private employment, a better gauge of labor market health, rose a modest 71,000, below forecasts for a gain of 90,000.

By contrast, data on Monday suggested the euro zone was in better shape. Euro zone investor morale surged while German exports rose more than forecast.

Baron Forex
David A Moore

Euro Rebounds After Sharp Sell Off.

Monday, April 19th, 2010

NewYork 4-19-2010
The Euro/Usd rebounded in the NY session after a sharp sell off that began on Friday. The Euro/Usd traded down to 1.3416 before finding late day support during the NewYork session. This has been a bad year so far for the Euro as fear of a default by Greece has weighed heavily on the multi-national currency. The report by the SEC of an impending lawsuit against Goldman Sachs on Friday has caused a sharp rally in the U.S. Dollar.