Saturday 18 August 2012

EURO NEWS: The euro fell slightly against the dollar invigorated by good indicators



The euro off again down against the dollar Friday invigorated by indicators better than expected in the United States, in a market still waiting for tangible developments on the situation in the euro area.

Around 2100 GMT, the euro bought 1.2330 dollars against 1.2355 dollars around 2100 GMT Thursday.

The euro off again rising against the yen at 98.10 yen against 98.06 yen Thursday.

The dollar also gained some ground against the Japanese currency to 79.55 yen against 79.35 yen yesterday.

The greenback strengthened slightly against the euro after the release of a number of encouraging indicators in the United States, "reducing expectations of further monetary easing" by the Federal Reserve (Fed) has Craig noted Erlam, an analyst at Alpari UK.

Indeed, consumer confidence in the country rose again in August, against all odds, new to reassure some traders on the growth prospects of the world's largest economy, and to raise the dollar.

Measures the Fed usually result injections of liquidity into the U.S. economy that have the effect of diluting the value of the dollar and make it less attractive to speculative investors.

But the decline of the euro, however, remained limited. "The reality is that the euro is currently evolving upward or downward within a limited range," noted Vassili Serebriakov, an analyst at Wells Fargo.

And this summer, the volumes are "relatively limited" which "tends to exaggerate the movement," he added, noting that the market reacted Friday still about Chancellor Angela Merkel.

The latter was the day "committed to doing everything (its) possible to maintain the common currency," claiming to be "on the same line" that the European Central Bank.

His "support for the strategy of the ECB to combat the crisis has revived expectations that managers (European) come together to find an effective solution to the problems facing the euro zone," said Anita Paluch, an analyst at Gekko Markets .

In addition, traders have welcomed the minister for European Affairs of Finland said on Friday that his country was "100% behind the euro," distancing himself from his colleague of Foreign Affairs stated in the British press that the country is preparing for a collapse of the euro zone.

Around 2100 GMT, the British pound was stable against the euro at 78.56 pence per euro and fell against the greenback at 1.5692 dollar.

The Swiss currency remained stable against the euro at 1.2009 Swiss francs to the euro and fell against the greenback at 0.9736 Swiss francs to the dollar.

The Chinese currency finished at 6.3584 yuan against one dollar for 6.3663 yuan yesterday.

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