Oct
18The euro traded with mixed sentiments on Wednesday after a volatile session. The euro gained to 1.3869 versus the US dollar on Wednesday as compared to 1.3737 on Tuesday’s North American Trading session. The pair EUR/USD touched the intraday high of 1.3745. Investors were mostly mixed about the latest bailout plan for the euro zone and debated its outcomes.
The single currency was also up 0.5 percent versus the Swiss franc to 1.2412 while gained 0.6 percent against the Japanese Yen to 105.44.
The euro has been stronger since the news of France and Germany agreeing to leverage European Financial Stability Facility for 440 billion euros which will give the EFSF with 2 trillion euros of buying power. Moreover on Wednesday, German Finance Minister Wolfgang Schaeuble said that EFSF could even be leveraged up to 1 trillion euros.
The dollar index DXY which measures the US dollar’s performance versus its six major counterpart currencies gained to 77.152 on Wednesday as compared to 77.146 on Tuesday’s late trading hours. The greenback got stronger on the improved US economic reports as the data on housing starts and consumer level inflation improved for the month of September.
Among other currencies, the British Pound surged to 1.5758 against the US dollar on Wednesday as compared to 1.5651 on late Tuesday. Negative sentiments were seen in the start of the session for the British Pound as the Bank of England’s minutes of its latest meeting disclosed the decision of additional asset purchases of 75 billion pounds in its quantitative easing program.
The US dollar slightly fell to 76.79 versus the Japanese yen on Wednesday as compared to 76.83 on last Tuesday.
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