After several days of losses, the greenback rebounded, ending the week with a rather neutral performance before a G-8 meeting, where Timothy Geithner may state in favor of a strong U.S. dollar.
The U. S. dollar pared its weekly losses after a Wall Street journal report affirming that the U.S. government will continue its policy to avoid bond purchases, resisting the pressure in order to control the supply of dollars. Another factor favoring the greenback is the incoming G-8 finance ministers meeting, in which speculations lead to believe that Treasury Secretary Timothy Geithner may suggest that a strong dollar is likely to be positive for a healthy world economic scenario. Comments in European financial organizations about the problems of a strong euro to exporters also helped the dollar to pair its weekly losses.
Analysts evaluate the speculations towards the G-8 meeting as a consequence of fundamental and technical factors moving the euro-dollar currency pair, as the market sentiment is not willing to push the euro to higher levels. A part from the problematic scenario the euro brings to the European agonizing exporting market, other factors such as the obscure future of the U.S. dollar as the main world currency make it hard to define in which direction the U.S. will point towards the next months.
EUR/USD traded at 1.4045 as of 11.21 a.m. GMT from a previous rate of 1.4155, paring its recent declines as the weekly session draws to its end.
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