After several days when the pressure was high against it, the US Dollar touched a 3-week peak versus the common currency Euro and 2-month high against the Japanese Yen. Analysts are in disagreement as to why the greenback is in recovery mode with some pointing out the situation in Greece as the reason why the Euro is weakening, as well as the ECB’s recent comments which hinted at more easing ahead. Other analysts are of the belief that the Dollar’s momentum is swinging back into positive territory after an expected correction.
As reported at 8:54 am (BDT) in London, the EUR/USD was trading at a session low of $1.1062, well off last Friday’s high set at $1.1468; more recently the pair was trading at $1.1116, a loss of 0.26%. The EUR/JPY is also lower at 134.3975 Yen, a loss of 0.4%; earlier the pair had traded at a session trough of 133.9198 Yen.
Dollar Seen Gaining Momentum
Not long ago, several major banks had been predicting that the Dollar would meet and then move beyond parity with the Euro; the recent correction had sidelined those expectations but now many analysts are putting the parity scenario back in play. Analysts point out that what the situation needs to evolve is a spate of stronger economic data from the US, which could put the timing of an interest rate hike by the Federal Reserve back on the table.
