EUR/USD ends week hovering around 1.3700
Posted by cvbasheer on November 13, 2010
The Euro suffered the biggest weekly decline against the Dollar since August. EUR/USD plummeted from levels above 1.4000 to 1.3570 (Nov 12 low) but managed to trim losses during Friday’s European session, rising back above 1.3700. The pair finished the week trading around 1.3700.
“Over the past month, the European debt crisis has resurfaced and is now increasingly affecting the currency market. The situation in Ireland has taken a turn for the worse, with Irish bond yields soaring on mounting speculation that the country will soon need a bailout. This may explain why EUR/USD has shed seven big figures from levels just shy of 1.43 over the past week, though the fall could also be attributable to a string of strong US data releases”. analysts at the Danske Bank said.
According to the Bank, with the European debt crisis back in focus, next week eyes will be on revised debt and GDP numbers from Greece on Monday in addition to Euro Group and Ecofin meetings on Tuesday and Wednesday.