Friday, 21 May 2010

EUR Trades Higher Against the USD

The EUR rose on Friday, heading for its first weekly gain versus the U.S. dollar in six weeks, as investors who had bet the currency would fall further bought it to prevent losses in case of currency intervention. Investors were jittery about holding significant positions in the EUR and other currencies given some market-moving announcements have been made on weekends this month.

The USD/JPY cross is actually currently trading lower by 100 pips today at 89.90. However, against the GBP, the Dollar is trading lower by 70 pips at 1.4440, as we see a sharp correction in the pair's behavior. The EUR/USD pair is level today at 1.2560, as market volatility seems to have slowed down as late night trading approaches.

As for next week, many impacting economic indicators are expected from the U.S. economy. Traders are advised to pay special attention to two leading indicators, the U.S Existing Home Sales and Consumer Confidence. A positive result from both this indicators might boost the Dollar in short term.