The euro was only slightly weaker on Friday, even as a pivotal European Summit failed to produce a coherent plan to deal with the region’s deepening sovereign debt crisis. This week’s collapse of the Portuguese government drove the nation’s borrowing costs to record highs, signaling that a bailout is in the cards. However, with German
The dollar fell sharply versus the euro on Thursday, as concerns about lingering weakness in the U.S. housing sector outweighed Europe’s growing sovereign debt crisis. Traders are focused on the interest rate gap between the U.S. and Euro area, which is expected to widen next month with a rate hike from the European Central. Barring
The dollar failed to make up any ground versus the euro Thursday morning, even after Portugal’s parliament failed to approve austerity measures designed to ease its sovereign debt crisis. Portugal’s parliament rejected sweeping budget cuts proposed by Prime Minister Jose Socrates, prompting Socrates to resign. European Union officials is taking up the sovereign debt issue
The dollar came under pressure in early dealing on Tuesday, but steadied later in the day as traders took a “wait and see” approach to events playing out in Japan and the Middle East. A report showing that U.K. inflation surged in February drove the dollar to a new yearly low versus the sterling. The
The dollar extended its losing streak versus the euro on Monday, as discouraging news from the housing front cemented expectations the Federal Reserve will maintain its easy monetary policies. Meanwhile, the president of the European Central Bank once again signaled an interest rate increase is coming from the ECB in April. Jean-Claude Trichet told the
