Tuesday, 7 Jul 2009

Greenback Hits Day's Low versus EUR

The U.S Dollar declined today, hitting the day's low against the EUR after stronger than expected German manufacturing figures suggested that the Euro-Zone economy is continuing to improve.

The U.S. has had a mixture of positive and negative economic data, which needs to be examined closely. But the market is now prone to react to weak figures. The USD fell after the European announcement, hitting the day's low against the EUR at $1.4050.

German manufacturing orders jumped 4.4% in May, exceeding economists' forecasts. The greenback remained unchanged on the day versus the Japanese Yen, as the U.S. currency failed to gain against the JPY while traders continued to flock to the Japanese currency, a popular safe-haven choice. The USD hit a 5 week low against the Yen on Monday in the wake of last week's bleak U.S. employment data. Market players will be watching for any comments in the debate on the Dollar's role as the world's reserve currency before a meeting of leaders of the Group of Eight industrial nations and leading developing nations in Italy on Wednesday.