The euro posted gains of 1.47 cents over the dollar on Friday to close the week up 1.91 cents at the 1.2938 level. The dollar was undermined on Friday after official US data showed that employers slashed 598,000 jobs in January, the steepest fall in 34 years. US unemployment now stands at 7.6% and many investors are hoping that Obama's fiscal stimulus package will be passed by Congress. However, the euro's gains were pared after figures showed that German industrial production had fallen by 4.6% in December.
In today's trading the dollar has strengthened back over the euro reaching as low as 1.2878 after it was confirmed that details of the proposed fiscal stimulus plan would be announced by the Treasury Secretary at 16.00 GMT tomorrow. It is anticipated that currencies would likely take their cue from how stock markets react to the plan. In today's trading there are no major economic announcements in the US, whilst in the eurozone it has been announced that the German trade balance surplus fell by €3.1 billion in December, to €6.9 billion.
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