The currencies majors witnessed another drop against the greenback for the 2nd week in a row, as the US dollar continues its upside movement, while the European currency is still moving down amid concern about Europe's debt crisis before Greece. Moreover, the lawmakers in Greece are continuing its austerity plan during the next five years.
On the other hand, the investors are turning their investments to safe heaven currencies such as the Japanese Yen and the US dollar, while the demand for greenback boosted as orders for durable goods climbed more than forecast in May, signaling manufacturing may be one of the first areas of the U.S. economy to rebound from a first-half slowdown in growth.
Furthermore, the gold prices declined for the third straight day, which has negative results on the Aussie as the Australian economy is considered the world's largest importer for gold, damping the demand for Aussie, along with the fears that facing the traders.
Japanese yen increased as a safe heaven and Japanese policy makers noted that economic recovery won't need any stimulus and additional assets by the Bank as the economy has ability to recover again from the March quake because of the recession isn't too sever.