Friday, 7 May 2010

Euro Receives Mild Boost in Afternoon Trading

Following news that a credit line would be set up to inject liquidity into the Euro-zone economies, the single currency received a slight boost against its main currency rivals, including the U.S. Dollar. EUR/USD was able to reach as high as 1.2784 in afternoon trading. The pair has since dropped back to its current level of 1.2727. EUR/GBP also saw some gains earlier today, and peaked at 0.8735 during midday trading. The pair has since dropped back down to its current level of 0.8608.

In other news, the U.S. registered a significantly larger increase in Non-Farm Payrolls than originally predicted. The Non-Farm figure came in at 290,000, compared to the forecasted figure of 190,000. While the result may have boosted investor confidence in the U.S. economic recovery, analysts are quick to point out that today's figure alone is not enough to signal a prolonged increase in the U.S. jobs sector.

As we close a very volatile week in the market place, forex traders will want to continue to pay very close attention to any news coming out of the Euro-zone economies next week. Whether or not the countries of the European Union will be able to formalize a concrete Greek bailout plan will likely determine if the Euro will continue to reach new lows in the coming days.