At the end of this week, currencies are trading heavily ahead of the coming week, where investors are closing their positions after the huge gains seen across the board, where optimism spread in the market after European leaders were able to quell jitters and rising debt woes and also after gross domestic product figures from the world's largest economy showed that growth expanded beyond expectations, which supported optimism to extend on hopes that global growth is gathering positive momentum.
Over weekly basis, the euro gained the most against the U.S. dollar, after the comprehensive plan from European lawmakers showed determination and firm actions to overcome the debt crisis; however, concerns are rising with eyes focus on the implementation of these measures and steps.
The euro was also able to gain a lot of strength against the sterling pound which also gained strength side by side with the common currency against the U.S. dollar on eased jitters and debt woes, where the United Kingdom was affected mainly by the worsening and deepening debt crisis since the euro zone is the main trade neighbor to the kingdom.
However, over daily basis the euro declined today against the U.S. dollar ahead of the income report from the world's largest economy, with lack of major fundamentals from the euro-area today, and affected by the volatility and heavy fluctuations as this week will end soon.
The EUR/USD pair opened the session today in Asia at 1.4187 and traded between a high of 1.4200 and a low of 1.4141, and is currently hovering around 1.4172, and is expected to appreciate in case the income report from the U.S. supported the optimism to extend today.
Over weekly basis, the EUR/USD pair opened this week at 1.3843 and reached a high of 1.4246 and a low of 1.3798, and is to close the session today with huge gains, extending those recorded in the past three weeks.
Concerning the EUR/GBP, the pair gained momentum this week, where after the opening of 0.8684 this week, the pair set the highest at 0.8830 and the lowest at 0.8672, and is trading now around 0.8795.
The U.S. dollar index (USDIX) is trading within narrow levels since opening the session today at 74.96; yet lost sharply against other major currencies during the week, where over weekly basis, the index opened this week at 76.45, and reached a high of 76.65 and a low of 74.71 and is trading now around 75.00.
Furthermore, the Japanese yen appreciated against the U.S. dollar this week, to currently trade around the all-time record set yesterday at 75.64 (yen per dollar), which could drive the Bank of Japan to intervene to control the rapid incline seen on the yen, which hurt the exports and the economy significantly and threatens the pace of growth and the economy's recovery from the disaster which hit the nation in March.
The USD/JPY pair opened this week at 76.18 and recorded new all-time record at 76.48 after reaching the highest at 76.48. The pair trades now around 75.76.