Friday, 12 Nov 2010

Euro Corrects Losses on Ireland Bailout Speculation

The euro rose from a six-week low against the U.S. dollar on Friday. The euro fell against the dollar on early trading and the EUR/USD fell to the 1.3575 level. However the euro promptly erased losses and the pair reached as high as the 1.3776 level.

The euro gained today on speculation European leaders will support Ireland and other most-indebted nations. In addition, Luxemburg's Finance Minister Jean-Claude Juncker, who leads the group of euro-finance ministers, said there's no immediate reason to think Ireland will request aid from the European Financial Stability Facility, further reassuring the market.

Looking ahead to next week, traders are advised to continue following news updates regarding the European sovereign-debt crisis, as this is likely to continue impacting the market. Special attention should be given to the Ireland bailout speculations.