By: Barbara Zigah
With the Abu Dhabi governing announcing that it will assist Dubai with its debt repayment problems, to the tune of $10 billion in financial assistance, the single currency Euro gained against the U.S. Dollar in London trading today. Once the news was released, the U.S. Dollar declined broadly with the Euro being the immediate benefactor of Abu Dhabi’s largesse. As reported at 8:55 am (GMT) in London, the Euro gained .2% to trade at $1.4656, helped along as well by a .8% gain in share prices in the European market. Only last week on the EBS platform, the Euro had hit a 2-month trough of $1.4586 after stronger than expected economic data from the United States. The U.S. Dollar Index, a gauge of the greenback’s value versus six major currencies, slipped to 76.391 .DXY, a decline of .2% and well off the 6-week high trade of 76.726 .DXY established last week.
Market players this week look to the Federal Reserve’s policy meeting to begin tomorrow and conclude on Wednesday. Investors don’t expect that the Fed will make any changes to the current historic low interest rates, but the tone of the statement issued at the conclusion will provide a clue as to the direction of future monetary policy.
Abu Dhabi aid to Dubai Boosts Euro in London Trading
Barbara Zigah
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About Barbara Zigah
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.