The Euro extended losses into the last trading session of the week, declining for a third straight day against the Dollar. Greek debt concerns have come into the forefront again after all the hype with the ECB rate announcement on Thursday is now over. Risk aversion has increased further with the Greek issue as investors have yet to see some concrete agreement on how to provide further financial assistance to the debt-ridden country. EURUSD slid down to 1.4321 from the open of 1.4457.
Sterling fell to a two-week low against the Dollar, weighed down by a decline in UK industrial output. Data showed UK industrial output contracted by 1.7 percent in April far below the forecasted 0.1 percent increase. Meanwhile, the Bank of England’s decision yesterday to hold interest rates unchanged as well as the perceived view of no rate hikes until next year has dampened the Pound. GBPUSD closed the trading week down at 1.6222 from the open of 1.6287.
The Swiss Franc traded in a range all day between 0.8431 and 0.8431 against the Dollar, mainly due to lack of a big change in risk aversion sentiment. Some predict the Dollar will play catch up now as it can go no lower after all the negative economic data has already been factored into the market. In fact, yesterday’s record U.S. exports figures gave a glimmer of optimism for the U.S economy.
The Canadian Dollar was choppy against the U.S. Dollar today. Data showed the unemployment fell to the lowest level since January 2009 to 7.4 percent in May from 7.6 percent in April. The loonie immediately strengthened against the greenback but soon lost steam. USDCAD rose from lows of 0.9711 to peak at 0.9795.
Against the Japanese Yen, the Euro fell as low as 114.94, its weakest level since May 27, closing down over 1 percent on the day at 115.15. Until some clarity about the Greek debt crisis emerges, the Single Currency will probably continue to suffer.
Gold fell almost 1 percent today for its biggest one-day decline in a month to hit a one-week low of $1,525.88. The precious metal was mirroring other commodities today such as crude oil which declined due to a sell-off by investors ahead of the weekend as fears over Greek debt lingered. Meanwhile, Dollar’s rise today played a role as well since gold prices and the Dollar have an inverse relationship.
Note: Daylight Savings Time in Effect for GMT