Tuesday, 16 Feb 2010

Euro Corrects Losses against the Dollar

The Euro rose against most of the major currencies today. The Euro rose against the Dollar for the first time in five days, and EUR/USD is currently trading near the 1.3760 level.

The Euro rebounded today on speculations that it's recent losses due to Greece's deficit crisis were too sharp to sustain. Increased risk appetite was observed in the market, which strengthened the Euro. In addition, a better-than-expected German ZEW Economic Sentiment also boosted the currency today. The Economic Sentiment is a survey that tries to predict the 6-month outlook for the German economy. The better-than-expected figure has contributed to the increased risk, and consequently supported the Euro.

Looking ahead to tomorrow, the most interesting economic publication looks to be the U.S. Buildings Permits. An indication that the housing sector in the U.S. is recovering is likely to increase investments in the U.S. economy. If the end result will reach above expectations it has the potential to support the Dollar.