Forex Trading - Euro hits new record high verses the US dollar. | CountingPips Forex & Currency Trading Blog

July 15, 2008 - Forex Economic News

Forex Trading - Euro hits new record high verses the US dollar.

The euro reached a new all time record high verses the U.S. dollar in forex trading as the European currency reached 1.6038 dollars per euro earlier today before retreating lower. The previous record was reached on April 22nd of this year at the exchange rate of 1.6019 dollars per euro. The new record came amid a moment of renewed financial market anxiety and low confidence in the U.S. economy this morning.

The financial markets, who have been quite jittery since the Sunday announcement of the planned government bailout of mortgage companies Fannie Mae and Freddie Mac, showed wide fluctuations today as the Dow Jones industrial average and the crude oil markets took turns between ups and downs. The end of the day showed that stocks staged a recovery and crude oil fell the most(daily) in 17 years by almost $6.50 a barrel.

The dollar climbed its way back despite less than stellar economic news releases and a bleak outlook in a speech by Fed Chief Ben Bernanke. US economic releases for the day showed that Producer Price inflation grew by 1.8 percent in June, U.S. Advance Retail Sales came in lower than the 0.4 percent expected at 0.1 percent and the Empire State Manufacturing survey was still negative although less negative than previous months. U.S. Fed Chief Ben Bernanke delivered a sobering outlook on the U.S. economy in his Semiannual Monetary Policy Report to the Congress today as he stated that, "The economy continues to face numerous difficulties, including ongoing strains in financial markets, declining house prices, a softening labor market, and rising prices of oil, food, and some other commodities."

Tomorrow's important forex economic releases include the U.S. Consumer Price Index, the minutes of the last Fed's interest rate meeting and the Consumer Price Indexes of both France and Germany.

Tags: euro record, usd low, forex trading, currency markets, Fannie Mae, Freddie Mac

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