Dollar Slides Against Euro Before U.S. Job Reports

The dollar has posted its third week of losses against the euro, mainly due improved world financial conditions, shrinking demand for refuge currencies.
A report to be released in the U.S. is expected to show that employers are cuttings jobs at a slower pace, which would decrease demand for refuge currencies, such as the greenback. The depreciation of the dollar was also heavily influenced by the ECB central bank benchmark interest rate cut and Jean-Claude Trichet’s declaration that measures like buying covered bonds will be taken in order readjust the Eurozone economy. Multiple reasons have pushed the greenback down against currencies like the Swiss franc and the pound, since optimism has returned to markets, traders are leaving the greenback in search for higher-yield assets.
The dollar has been struck by a wave of risk appetite, having strengthened enormously against the euro since the worst moment of the American crisis when it hit 1.60 last year, now the greenback, which is seen as a relatively safe bet during the global slump, is losing space as risk aversion is constantly declining. Economy indicators show that the global slump is very likely to have passed its worse moment, and losses are likely to follow for refuge currencies like the dollar and the yen.
EUR/USD traded at 1.3388 rising from a previous price of 1.3296. The USD/CAD currency pair slid from 1.1686 to 1.1623.

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