Trade was slim today due to many banks were closed for Easter break. But some analysts said that the USD downtrend looked set to resume once traders return from the holidays. USD hovered near a 3-year low versus most major currencies today with some analysts looking for it to test an all-time low when players return from the Easter holidays. Dollar index slipped to 3-year low of 73.735 yesterday, having slipped below its 2009 trough of 74.170. It last stood at 74.061 today, about 4.7% above its record low of 70.698 marked in March 2008.
EUR today fell to 1.4549 against the USD after reaching a 16 month high of 1.4647 yesterday. ECB’s Governor, Jean-Claude Trichet, commended on the rate increase. He said that this month’s rate increase would essentially not be the1st in a series and that there were no important signs of 2nd round inflationary effects also prompted profit taking in the currency. EUR also fell against the sterling today. EUR/GBP opened the session trading at 0.8833 and fell as low as 0.8798.
The sterling remained stabled against USD today after it quickly hit a high of 1.6568. It afterwards traded in a range of 1.6537 – 1.6507.
The precious metal swept to a lifetime high today in holiday thinned trade, reaching a record for a 6th consecutive session on a weak USD and factors ranging from geopolitical uncertainty to inflation concerns. Silver also raced to its highest in 31 years, outstripping gold’s weekly gains by a huge margin. An extended euro zone sovereign debt crisis, unrest in the Middle East and North Africa, rising global inflation, and most recently worries over the fiscal stability of the United States and a sharply weaker dollar have fueled the record-breaking rally in these precious metals.
EURUSDEURGBPGBPUSDUSDCHFEURCHF OPEN (07:00 GMT)1.45800.88331.65050.88511.2908 DAY’S HIGH1.45870.88331.65680.88681.2925 DAY’S LOW1.45490.87981.65040.88481.2878 CLOSE (14:00 GMT)1.45530.88091.65200.88501.2882
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