Friday, 16 Apr 2010

EUR/USD Retraces to Last Week's Closing Price

During the New York trading session, the dollar and the yen pushed higher while commodities fell following the release of the Security and Exchange Commission charges against Goldman Sachs in connection with CDOs that the bank issued.

The EUR/USD finished the week near the 1.3500 level after opening the day at 1.3541. The Yen was trading at 92.13 from an opening day price of 92.70. Crude oil was down 2% at $84.58.

Prices collapsed after the SEC announced it was charging Goldman Sachs with defrauding investors regarding collateralized debt obligations (CDO) the firm packaged that were connected to mortgage backed securities. The firm later took a short position against those CDOs.

By the end of the trading week, the EUR/USD has lost its gains that followed the announcement of an EU bailout package for Greece. Next week's trading could follow similar suit. If Greece comes to accept bailout funds, may it be from the EU or the IMF; the euro could react positively following a rise in risk sentiment.