The euro slumps fueling dollar strength on debt woes

By @ibtimes on

The dollar head higher reversal the morning losses powered mostly by the euro's weakness which was burdened yet again by growing debt woes.

The dollar index is hovering around 75.02 recording the high of 75.14 and the low of 74.61. The euro's return to weakness was the reason behind the dollar index gains as it accounts for the biggest weight among the 6 currencies.

Debt woes mounted with yields on the most-indebted nations bonds surging to records on expectations they will reschedule debt which increases their difficulty in accessing capital markets as well as endure investors with losses. Also the possibility for Finland to block Portugal's bailout loan rose with the election ahead in the nation as they are the only nation to need a parliament agreement while other nations' government provide the agreement.

The euro declined to surrender the early gains from 1.4450 to hover around d1.4390 recording the high of 1.4515 and the low of 1.4363.

The focus now is on the US data and the main highlight remains the euro and the dollar. Greenback remained soft against other majors ahead of the inflation figures which are projected to show subdued inflation levels and accordingly fuel speculation for protracted fed pause on the current loose monetary policy.

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