The US Dollar eased back versus the Japanese Yen and the Euro after a short bout of investor profit taking which came in the wake of improved US data. That economic data had gone a long way to help restore some waning confidence in the greenback. In spite of a lackluster first quarter, there have been signs that the US economy is improving, and in tandem with comments made by several Federal Reserve policy makers there is once again hope that rate increase might be under consideration for the latter of part of 2015.
As reported at 9:26 am (BDT) in London, the EUR/USD was trading at $1.0898, a gain of 0.21% and falling away from the session peak of $1.0935; this week, over the past week, the greenback has risen more than five cents on the common currency Euro. The USD/JPY was trading at 123.5835 Yen, not far from the session high of 123.6560 Yen; the pair easily broke through the June 2007 high. Analysts are watchful that the pair could continue to rise and soon surpass the 124.14 Yen level, a price not seen in more than 12 years.
Greece and China Seen as Threat to Stability
The problems with Greece continue to take center stage in the Eurozone, and the continued slowdown of the Chinese economy is also presenting headwinds. Some analysts say that both China and Greece pose a risk to the financial market stability and ultimately may continue to be a stumbling block for the Federal Reserve.