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Home Forex Check Forex Rate Euro Dollar Exchange rate: Tuesday morning review
Euro Dollar Exchange rate: Tuesday morning review PDF Print E-mail
Written by Sam Coventry   
Tuesday, 16 March 2010 10:54
With risk aversion on the rise yesterday, the euro dollar exchange rate erased Friday's gains against the US dollar, falling 0.7% to close at 1.3675.



The EURUSD is 0.124% up at 10am in London. 1 EUR = 1.3695 USD.

"The Euro weakened against the majors for the first time in three days yesterday, as European finance ministers argued over the details of a rescue package for Greece, lowering investors' appetite for higher-yielding currencies. The U.S Dollar and the Japanese Yen registered gains against the Euro, as the single currency slipped back towards $1.37 in New York," says Adam Solomon at business foreign exchange brokers TorFX.
 
The European Central Bank President Jean-Claude Trichet publicly gave his support to Greece's efforts to reduce the budget deficit, currently above 12% of gross domestic product.

The euro came under renewed selling pressure, despite speculation that a meeting this week will produce a rescue a strategy, amid hopes Greece's budget cuts will make a bailout necessary.
 
Brian Dolan, chief currency strategist at Forex.com, said that "there's less cohesion in terms of a bailout for Greece, and that's undermining confidence in the Euro. They've downplayed the prospects of a bailout package." The Euro declined 0.7% against the Dollar yesterday and the single currency has fallen 4.5% since the start of the year.
 
The latest New York manufacturing PMI index edged slight lower in the figures for March but the employment component improved. In contrast, the NAHB housing index dipped to 15 from 17 the previous month, maintaining the recent run of disappointing figures surrounding the housing sector.
 
The focus today will inevitably fall on the FOMC rate announcement this evening and there is likely to be pressure from some regional Fed Presidents to signal tighter monetary policy.

A change in the language used by the Fed in the accompanying statement would indicate that U.S interest rates may rise in the near future, as some members express unease about rates being left at ultra-low levels for an extended period.


Last Updated ( Tuesday, 16 March 2010 10:56 )
 

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