5 August 2010 | Posted by: Charles YS
There were a few alterations between Foreign exchange trading of dollar and euro this Thursday as many traders were cautious and decided not to make any huge trading purchases in the currency markets just 24 hours or so before US salary reports are released. These reports are expected to give a clearer picture of the state of the American economy.
There were encouraging reports from German industries and countries such as Spain and Greece were achieving results in its bid to cut down on overspending its budget. That news as well as poor employment reports in the US helped boost the price of the euro.
Some financial traders were cautiously hopeful that better results may be achieved by the salary reports and hence held onto their dollar positions.
According to Jessica Hoversen, a currency expert with MF Global Inc BASED IN Chicago said many investors were thinking about buying more quantities of the dollar before the US salary reports. Poor reports may cause the US Federal Reserve to try to interfere in the markets. Good reports on the other hand will cause the Federal Reserve to stay at a distance from any interference in the financial markets.
The euro was selling at the price of $1.3150 EUR= after rising to $1.3234 earlier after the US Labor Department stated more Americans had lost their jobs and filed for unemployment benefits as a result.
More than 65000 people lost their jobs in the US economy in July but 90000 people were employed by non public firms and companies.
An encouraging auction in Spain and an IMF support of economic reforms in Greece to cut down on overspending by the government which helped push the price of the euro. The two countries were in huge debts which helped lower the price of the euro.
From iFresh News published on AUGUST 5, 2010