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Euro at two-month low against dollar
Written by article default Monday, 29 November 2010 14:44
The European shared currency fell against the dollar as Ireland’s bailout plan failed to ease investor’s fear regarding the debt issues in Europe.EU finance chiefs ended their talks in Brussels and agreed to grant Ireland the package which was in line with the expected tag at 85 billion Euros with an annual interest of 5.8%. The jitters are clearly seen in the market especially as the euro declined to the weakest level in two-months versus the dollar and also depreciated against the yen in trading.
The US dollar index, which tracks the performance of the currency against six majors, rose on the daily scale to 81.07, compared with the opening levels of 80.41 where it managed to touch the highest at 81.07 and the lowest at 80.05.
The shared currency fell against the dollar to trade at 1.3075, compared with the opening levels of 1.3280 where the pair reached the highest at 1.3301 and the lowest at 1.3062.
Positive data from the UK today showed improvement in housing conditions and lending, failed to support the sterling’s morning appreciation, where the pair fell to trade at 1.5544, compared with the opening levels of 1.5592 while setting a high of 1.5645 and a low of 1.5526.
The support at 1.5552 failed to contain the pair’s drop, where it was breached, opening the path for the pair to depreciate further to 1.5475.
Finally, the dollar ascended against the yen, reaching 84.30, compared with the opening levels of 84.02 while setting a high of 84.40 and a low of 83.80.
The pair touched the retest level at 83.80 flawlessly this morning and rebounded to start the expected bullish wave. Hence, the weekly trend is bullish and remains valid with trading above 82.80.