Monday, 12 Apr 2010

Dollar Corrects Losses Vs. The Euro

The Dollar corrected some of its losses against the Euro and the Pound during today's trading session. The Dollar gained about 100 pips against the Euro and about 50 pips against the Pound. As a result, the EUR/USD pair dropped from a monthly high and is currently traded around the 1.3580 level.

It seems that investors remain cautious at the moment. After the Euro was boosted during the weekend, following the European governments rescue plan for Greece, the Euro's gains were slightly corrected today. In addition, the better than expected U.S. Federal Budget Balance has also supported the Dollar today. The report showed that the budget deficit in the U.S. has narrowed to $65.4 billion from $220.9 billion. The positive data has supported the Dollar.

Looking ahead for tomorrow, the most significant news publication looks to be the U.S. Trade Balance. Analysts have forecasted that the difference in value between imported and exported goods and services has widened to $38.5 billion during February. If the actual result will be similar, it might weaken the Dollar.