The common currency of the European Union pushed to its six-week high on Friday against the monetary unit of Japan, propelled by the leader of Germany noting support for how the European Central Bank will move forward with confronting the sovereign debt crisis, according to Bloomberg.
The central bank might purchase debt from nations victimized by the debt crisis, which Chancellor Angela Merkel said she stands behind. The value of the 17-nation monetary unit gained against all 16 of its top rivals.
"The Merkel comments were supportive for the euro in that they were consistent with the ECB, though this was tempered by the fact that the main opposition to bond-buying comes from the Bundesbank (Germany's central bank), not the government," currency strategy global head Adam Cole with RBC in London told Reuters.
The euro has gained about 0.6 percent against the world's reserve currency this week; the yen has dropped 1.4 against the U.S. dollar.
The U.S. dollar climbed to its highest value in five weeks against the Japanese yen, notching its best performance since the middle of July, according to Reuters.
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.
