EUR/USD Performance Chart as at 3:30 a.m. Singapore time, 15/04/11

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HISTORICAL DETAILS 

% Change

1 Wk 1.08%

1 Month 3.32%

3 Months 8.03%

6 Months 2.69%

1 Year 6.24%

 

52 WEEK

High 1.452

Low 1.1877

 

BLOOMBERG MEDIAN FORECASTS

Q2 2011 1.40

Q3 2011 1.37

Q4 2011 1.37

Q1 2011 1.35

 

DAILY DETAIL

The dollar dropped against the euro today in choppy trading and further losses are likely, as the greenback was hurt by reported central bank selling amid a backdrop of low US interest rates that are not expected to rise anytime soon. Currently the euro is trading at $1.4490, up 0.34% on the day. [1] Dollar weakness will likely continue so long as US Federal Reserve and European Central bank policies continue to diverge. Recent US economic numbers, including jobless claims and retail sales have come in on the soft side, which keep intact expectations the Federal Reserve's $600 billion asset-buying program would stay in place until June. The Fed's second round of quantitative easing has been a bane for the US dollar as it is perceived as tantamount to printing money. The euro, in contrast, remains supported by the prospect of higher interest rates in the eurozone despite comments today by Germany that Greece may need to restructure its debt (again). Top ECB policymakers sent fresh warnings about rising eurozone inflation risks on Thursday, with one likening the current economic situation to that at the start of the bank's last rate hike cycle in 2005. The ECB raised rates to 1.25% last week. Despite the turmoil in Egypt, Libya and all of the other shocks, the euro has still managed to move higher, and has gained 8.3% on the dollar in 2011 even with events that would typically be negative for the currency, such as uprisings in the Middle East and Japan's earthquake. Paolo Palazzi-Xirinachs, Chicago

 

Notes: Source: [1] Reuters (14 April 2011), [2] Bloomberg UK (14 April 2011), [3] Sydney Morning Herald (14 April 2011), [4] Japan Today (14 April 2011). Chart data supplied by Bloomberg.