Darrell Jobman, Editor-in-Chief, TraderPlanet.com
The Euro pushed to highs around 1.2950 against the dollar during Friday, but struggled to sustain the gains and weakened back to around 1.2900 later in US trading. Risk appetite was firmer which lessened dollar demand.
The US trade deficit declined to US$36.0bn in January from US$39.9bn the previous month and this was the lowest reading for six years. There was a further monthly decline in both imports and exports as economic activity continued to contract sharply. The lower deficit will provide some underlying degree of dollar support as the overseas financing requirement will be lower.