Dollar Slides Against Euro
Jun 22nd, 2009 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar slipped against the euro. Late Friday, the euro was trading at $1.3952 vs. $1.3889 on Thursday.
Analysts surmised that rising global equity markets indicated an expanded willingness among investors to take a flyer with riskier assets.
But no clear trend appears to be developing.
“While sentiment appears to remain mostly dollar negative, the inability of the euro to establish a convincing foothold above $1.40 disappoints the dollar bears,” said analyst at Brown Brothers Harriman. “The euro appears stuck in the $1.3750-$1.4050 trading range.”
With no major economic numbers coming from either the euro zone or U.S. yesterday, investors were beginning to shift their attention to next week’s meeting of the Federal Reserve’s policy-setting Federal Open Market Committee.
“The Fed is likely to sound more upbeat on growth prospects than it did in its April statement,” wrote Steven Englander, of Barclays Capital.
Englander believes that policy makers will also likely try to deter speculation that they will soon raise the fed funds rate from its current range of zero to a quarter-percentage point. If they do, “The emphasis on flatness for an extended period could be a U.S. dollar negative,” Englander said.
Source: Dollar Slides Against Euro
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