Friday, 25 Feb 2011

Dollar Rebounds on Return to Risk Aversion

The dollar rebounded against the euro on Friday, boosted by a retreat in oil prices after Saudi Arabia stepped up crude supply, and the greenback could reclaim its status as a safe-haven currency if Middle East tensions escalate. The Dollar is currently trading higher against the EUR by nearly 80 pips at 1.3750. It is also trading higher against CHF and GBP.

The euro's early session strength was helped by inflation-fighting rhetoric from European Central Bank policy makers, which added to expectations that euro zone rates will rise faster than those in the United States.

Looking ahead to late night trading, it's recommended that you continue buying-up the greenback, whilst the current trend it still hot.