Friday, 25 Feb 2011

USD Tmbles to 3 Week Low Against Euro

The EUR/USD pair spiked to its highest level in 3 weeks today, peaking right around the 1.3835 level before staging a slight correction. Analysts attribute the bearish dollar to the continued turmoil across much of the Middle East. Fears that American influence in the region may be on the decline has sent the dollar significantly lower against many of its main currency rivals.

Crude oil appears to have settled following yesterday's spike. After peaking just above $103 a barrel, the commodity has since dropped and is now trading around $97.35.

Turning to the rest of the day, traders will want to pay attention to the US Prelim GDP figure, set to be released at 13:30 GMT. Analysts are forecasting the figure to come in right around 3.3%, which if true, could give the greenback a slight boost to close out the week. That being said, investor confidence in the US economy is not particularly strong at this time. Any gains the dollar makes before markets close will likely be temporary.