Forex: Weekly’s review
On Monday euro rose the most in more than a year against the dollar after French and German leaders pledged to deliver a plan to support banks and repeated a commitment to keep Greece in the single-currency bloc. The Swiss franc strengthened against the euro, the day before the Swiss National Bank imposed a ceiling of 1.20 versus the common currency and resumed purchases of foreign currencies to curb the franc’s advance.On Tuesday the euro dropped from the highest level in almost three weeks against the dollar as Slovakian lawmakers сcould not to vote on a plan to retool the euro region’s bailout fund. The pound weakened as U.K. manufacturing production contracted for a third month. New Zealand’s dollar fell as the nation’s budget deficit was wider than forecast.On Wednesday the euro rose to three-week highs against the dollar and yen after European industrial production unexpectedly rose in August, and the European Union and International Monetary Fund officials indicated Greece will get an 8 billion-euro ($11 billion) loan next month. New Zealand’s dollar rose the most in two months against the dollar as stocks and commodities advanced, buoying higher- yielding currencies.On Thursday the euro gain versus the dollar after Slovakia approved Europe’s enhanced bailout fund, completing ratification across the currency region. The dollar and yen advanced versus most of their major counterparts after JPMorgan Chase & Co. reported a decline in profit and China’s export growth slowed, weakening stocks and spurring demand for a refuge..
On Friday the euro extended its biggest weekly gain versus the dollar since January as Group of 20 finance ministers began a two-day meeting to discuss plans to tackle Europe’s debt crisis. The euro rose versus the dollar as Treasury Secretary Timothy F. Geithner said “Europe is clearly” moving to a crisis solution. The yen fell against the dollar on speculation Japanese authorities will take steps to curtail their currency’s gains.