Forex: Weekly review

The euro rose to a four-and-a-half-month high against the dollar this week, shrugging off worries over the fiscal health of the eurozone’s peripheral countries.

The single currency remained resilient in spite of two Portuguese government debt downgrades and the resignation of José Sócrates, Portuguese prime minister, after he failed to get parliamentary approval for his plans to rein in the country’s fiscal deficit.

Analysts said expectations of monetary tightening from the European Central Bank next month were continuing to support the euro with traders noting buying interest from Asian reserve managers on any dip in the single currency.

In addition, they said a potential bail-out of Portugal by its eurozone partners had already been priced in by investors.

The euro, which hit an 18-week peak of $1.4249 against the dollar on Tuesday, eased just 0.2 per cent to $1.4147 over the week.

Meanwhile, the Australian dollar hit a 29-year high against the US dollar, rising 3.2 per cent to $1.0280 as recovering risk appetite fuelled demand for the commodity-linked currency. This means that it has more than recovered all of its sharp losses after the earthquake and resulting nuclear crisis in Japan this month, which raised fears over global growth.

Analysts said last week’s co-ordinated action from major central banks to weaken the yen had improved investor sentiment, helping to allay fears that a disorderly rise in the currency would destabilise not just Japan’s economy and financial system, but that of the whole world.

Other commodity-linked currencies advanced with the New Zealand dollar up 3.5 per cent to $0.7564 against the dollar on the week and the Canadian dollar 0.9 per cent higher at C$0.9757.

The yen continued to weaken after last week’s intervention, falling 0.6 per cent to Y81.10 against the dollar on the week.

The dollar advanced elsewhere, climbing 1 per cent to $1.6072 against the pound over the week and rising 1.6 per cent to SFr0.9149 against the Swiss franc.

Latest news

11.12.2024

USD/JPY advances to near 152.50 as US Dollar gains with US inflation in focus

11.12.2024

Crude Oil rebounds amidst Middle East flare-up

11.12.2024

Last set of data before the Fed interest rate meeting – Commerzbank

11.12.2024

Gold takes a breather at $2,700 with all eyes on US inflation

11.12.2024

USD/SGD: To consolidate further – OCBC

11.12.2024

50 basis points from the BoC are coming – Commerzbank

11.12.2024

USD/CAD trades sideways below 1.4200 ahead of US inflation, BoC policy meeting

11.12.2024

USD/JPY: Fed and/or BoJ’s pace slowdown may affect USD/JPY’s moves – OCBC

Support

Personal area

Trading
- Account types
- Market
- MetaTrader 4/5
Promotions
- Promotions
Investments
- Synchronous Trading
  - Rating
  - About Service
  - How it Works
  - FAQ
Analytics
- News and Tools
- Market analysis
  - Market Opinions
  - Technical Analysis
TeleTrade
- About brand
- Сooperation
- Knowlege Base
  - Education

Personal area

Forex Demo Account

Start Bonus 100%

Synchronous Trading

Our Advantages

Economic Calendar

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers