Monday, 15 Nov 2010

EUR/USD Trades near 6-Week Low on European Sovereign-Debt Concern

The U.S. dollar continued to strengthen during today's trading session. The dollar gained about 150 pips vs. the euro, and the EUR/USD pair is now trading near a 6-week low. The dollar also gained about 100 pips against the British pound and about 80 pips vs. the Japanese yen.

The dollar gained today as concern that some European countries will struggle to repay debt and rising Treasury yields boosted demand for the greenback. The euro fell today on speculation Ireland may need a bailout, only six months after European officials provided a $1 trillion rescue plan to aid the Greek economy with its debt struggle.

Looking ahead to tomorrow, traders are advised to continue following every update regarding the Irish debt crisis. Traders should also keep in mind that if Ireland will stand firm on its refusal to receive an aid package, the euro might weaken further against its major rivals.