The US dollar advanced in overnight trading session on Monday against the Euro as uncertainty increased among the investors and trader regarding sovereign debt situation of European countries. The Euro also declined to its ever low against the Swiss Franc as the investor’s think that European Union has not been able to take a concrete action over the euro zone’s debt situation.
The dollar index DXY which measures the greenback’s performance versus its six major counterpart currencies moved up to 80.376 in overnight trading as compared to 80.402 as on late Friday.
The Euro declined to 1.3146 versus the US dollar as compared to $1.3173 as on Friday. The Euro has also touched it’s ever low against the Swiss Franc to 1.2691 reporting a decline of more than 0.6 percent. However the Pound Sterling gained 0.1 percent to 1.5534 against the greenback in overnight trading.
The US dollar declined versus the Japanese Yen to 83.73 as compared to 83.90 on late Friday.
European leaders decided to come with a permanent solution for euro zone’s sovereign and arranged a meeting in last week. However the no positive measures were produced out of the meeting which could help in regaining confidence of investors.
Moreover the downgrading of Ireland’s credit rating by Moody’s Investors Services has created more bearish sentiments for the single currency.
Strategists Adrian Schmidt and Kenneth Broux from Lloyds TSB commented, “The lack of any substantive plan to bulk up the European Financial Stability Facility or provide an alternative crisis-management system has kept the market euro-negative as the downgrades keep rolling in, while there may well be something more forthcoming over the next few weeks, for the moment the market is likely to see this as a green light to sell the euro, suggesting risks of a break below $1.30”
Daily forex trading news written by Rehan from DailyForexTrade.com
