Profit Taking Helps Push Euro Higher, But Gains Seen as Limited

Barbara Zigah

By: Barbara Zigah

Profit takers are helping to push the common currency higher against the U.S. Dollar following the Euro’s 8-month low struck in the previous trading session. Analysts believe that the gains are likely limited, with traders skeptical of the G20’s most recent pledge to ensure global financial stability. The Euro rose nearly 0.8% initially on the promise of an emergency statement from the G20 regarding the worsening situation in the Eurozone, but the actual communiqué was lacking anything substantial enough to engender confidence.

As reported at 1:57 p.m. (JST) in Tokyo, the Euro was trading 0.4% higher against the U.S. Dollar at $1.3521; on Thursday, the EUR/USD pair struck an 8-month trough of $1.3384 on the EBS trading platform. The Australian Dollar also initially climbed on risk taking, rising 0.5% against the greenback to $0.9797; like the Euro, it too had struck a multi-months low on Thursday, trading at $0.9692, the lowest trade since November 2010.

The Japanese Yen and the U.S. Dollar benefited on Thursday from investors’ collective fears. The U.S. Dollar Index traded at 78.207 .DXY, backing off the 7-month peak of 78.798 struck the previous day, but analysts point out that yesterday’s rally could continue if the 78.758 resistance is breached.

About the Author
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.

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