Euro posts the biggest weekly gain the market, Dollar finishes out worst weekly feat:
Last week, Euro hatched the biggest weekly gain after the period of two years while Dollar ended off the worst weekly feat since March 2009.
Last week, EUR/USD skipped down from 1.3389 to 1.3880 and then approached to 1.3895, which was the uppermost price since September 15. This impacted the other currencies as EUR/JPY jumped upward from 102.80 to 107.16 while EUR/GBP stepped up from 0.8602 to 0.8773. An unforeseen optimism of Forex Traders, about the skills of the European leaders to pact with the issues of the region, urged the currency to the peak level in several weeks.
There are certain factors for Euro gain during last week. There was held a meeting of French Group of Twenty that began on October 14 where the leader of G20 addressed the debt problems of the European Union. The investor believed that some necessary actions would be taken to meet the debt crises of the European Union. It was also expected that The G20 leader would make an important announcement after the meeting.
Another optimistic reason for the Euro was the Forex trader’s confidence upon the promise of The French President Nicolas Sarkozy and German Chancellor, Angela Merkel to obtain the resources for resolving the debt calamities of the European Union. Apart from bears, it was appreciated by all the FX Market partakers. The French and German heads also promised to unveil their strategies on November 3. In the last week’s data, the traders took downgrade of Spain’s credit rating by Standard & Poor’s in the negative sense but the result was quite different. The effect of rating cut the decrease very speedily. This effect witnessed how anticipations prevail over the actual bad rudiments. The previous G20 conference was more talkative than active. The all above factors intended the traders to put their investments in the Euro and it took the amazing upward trend in the Euro market. The indirect influence of Euro resulted into the worst downgrade of Dollar in the Forex market. The same G20 is the first concern for elementary catalysts to risk the trends and dollars for upcoming weeks.