Forex: Weekly review
On Monday the euro strengthened amid optimism Greece’s parliament will approve austerity measures required to help avert the currency bloc’s first sovereign default.
On Tuesday the euro gained against the majority of its most-traded counterparts on speculation Greece’s parliament will approve an austerity package needed to ensure more financial aid and stave off the currency union’s first sovereign default.
The greenback extended its losses after a report showed confidence among U.S. consumers unexpectedly fell in June to a seven-month low.
The euro rose after Trichet’s comments at a press conference in Amsterdam. The ECB raised its benchmark rate in April for the first time in almost three years, lifting it by a quarter point to 1.25 percent.
On Wednesday the euro reached two-week high against the dollar as investors raised bets the European Central Bank will increase interest rates next week after the passage of austerity measures by Greek lawmakers.
Canada’s dollar rose as consumer prices in Canada advanced 0.7% in May after a 0.3% gain in the previous month, Statistics Canada said today,
The franc slipped versus all of its major peers after the nation’s economic barometer fell in June, adding to signs the franc’s ascent and a faltering euro-region economy may hurt economic growth.
On Thursday the euro climbed to the highest in almost three weeks against the dollar on prospects the European Central Bank will increase interest rates next week to curb inflation and as European ministers are set to approve the next aid payment due to Greece.
The pound slid to the least in more than 15 months against the euro as reports showed U.K. consumer confidence fell this month. Moreover, the house prices were little changed, limiting the scope for interest-rate increases.
On Friday the euro was poised for its first weekly gain in a month versus the dollar as Greek Prime Minister George Papandreou won approval for an austerity plan needed to keep aid flowing, while German banks agreed to roll over Greek bondholdings maturing through 2014. The Dollar Index was set for its biggest weekly drop since the first week of June.