Tuesday, 22 Feb 2011

EUR Recovers against US Dollar

The EUR edged up slightly against the U.S. dollar during the morning trading session, recovering after recent losses from the mounting tension in the Middle East that has driven investors to cut risk. The 17-nation currency is currently trading higher against the USD by nearly 40 pips at 1.3640.

The New Zealand dollar (NZD) hit near a two-month low against its U.S. counterpart, after investors fretted about the economic damage caused by an earthquake which rocked the country's second biggest city, spurring speculation about the chance of an interest rate cut.

The release of the U.S. CB Consumer Confidence at 15:00 GMT is likely to set the tone for the greenback's direction in today's trading. Better-than-expected results may help the dollar recover some of today's early trading losses against some of its crosses, such as the EUR. On the other hand, if the results turn out to be in line with forecasts, then the USD may record a fairly bearish session in today's trading.