Thursday saw the 17-nation shared currency fall to its lowest value since the middle of 2010 against the world's reserve currency, according to The Wall Street Journal.
After the central bank of Japan opted against continuing its program of asset purchases, the pacific Rim nation's monetary unit gained. But the central bank of Korea cut interest rates and Australia saw economic data about jobs drop in June. The U.S. Federal Reserve is unlikely to deploy a third round of monetary easing anytime soon, according to minutes from the body's June meeting that were released on Wednesday.
"Every single central bank except for the Fed is easing, and until that happens we expect the dollar to stay supported," G-10 currency strategist George Saravelos with Deutsche Bank told Reuters. "The euro is likely to weaken further as it will be hurt by the ECB's decision to cut the deposit rate and there will be a shift in funding."
The Dollar Index, a measure of the greenback's competitiveness against six counterpart currencies, pushed to its highest value in 24 months.
Despite the euro's poor performance, May saw an unexpected increase in industrial production in the euro zone, according to The Wall Street Journal.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
