The US dollar was up versus most of its peers this morning; however it lost ground against the Canadian dollar and the euro. This is because of the limited confidence that returned to the markets. This again carries a side effect that is stemmed from the new French President Francois Hollande who reiterated his support fo
joint bonds and Greece staying in the Eurozone.
During the current week, it has been noticed that the dollar climbed against nearly all of its counterparts, and stood strong. The greenback has benefited greatly from the uncertainty coming from the world’s leading economies. The GBP/USD pair was expected to fall during Friday’s trading session.
The euro is once again headed for yet another weekly decline, as the economy of the Eurozone continues to deteriorate. The EUR/USD pair plummeted notably on Thursday. However, the pair was up a touch on Friday morning by 6 pips at $1.2538.
With this optimism in the region, Italian Prime Minister Mario Monti stated yesterday that Greece will surely stay in the Euro-zone. This has sent much needed confidence into the markets. In fact, this led U.S. stocks to climb late during Thursday’s trading session.
The comments from Monti foresee that this will help the euro during today’s trading session. The EUR/CHF cross was up by 0.11% at 1.2029 Swiss francs. Going long on the cross today is set to bring high returns.
JPY endeavors to renew confidence
The Japanese yen was trading lower this morning versus its main currency counterparts. This is because of the renewed confidence in the markets following comments made by Mario Monti and the comeback of U.S. stocks late during yesterday’s trading session.
The USD/JPY pair is up at the moment by 9 pips at 79.69 yen. The JPY also lost a lot of ground versus both the euro and the pound in the latest round of trading. Traders are looking ahead to go long on the USD/JPY pair during end-of-week trading.
Rise in the price of Crude Oil
Oil rose on Thursday, as investors took advantage of a rally which brought them high returns. Yesterday’s gains were not foreseen, indicating just how unpredictable the markets can be.
Crude oil was trading higher on Friday morning by 7 pips at $90.71. The latest gains are quite remarkable. The dollar is also showing signs of weakening, which may be one of the reasons for stronger oil prices. The fact of the matter is that oil is undervalued at the moment, and the performance and behavior which we are seeing is a price correction.
Therefore, for all traders and investors, the signs indicate that there is a requirement to take note of all developments and look for a best bidding and buying in order to earn moderate or high profits in the near future.
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