Dollar Gains on Renewed Greek Debt Concerns
March 15th, 2010 Posted in The US Dollar
The Dollar had a fairly brisk trading today, as it was able to make major gains on both the Euro and British Pound. Rumors that the Greek bailout package would not be delivered as quickly as predicted led to a marked decrease in risk taking among investors. Additionally, signs that the Chinese government would be further tightening its monetary policy caused the safe-haven greenback to climb throughout the day.
Since 07:00 GMT this morning, EUR/USD has dropped over 80 pips. Currently the pair is trading at 1.3670. The price drop for GBP/USD was even more dramatic. The pair has fallen some 130 pips in the same amount of time. It is currently trading at around the 1.5040 level.
Tomorrow promises to be a volatile trading for USD, as several news events will likely shake up the market. First, the monthly Building Permits figure should give investors a solid indication regarding one of the fundamental aspects of the American economy. An increase in building permits shows that construction is on the rise, meaning that the economy is heading in a positive direction. More importantly, the FOMC statement as well as the latest decision regarding U.S. interest rates will definitely cause heavy movement in the markets. While it is not predicted that interest rates will change tomorrow, any positive outlook for the US economy should lead to gains for the Dollar.
