The Euro dipped from recent 2-week highs against the US Dollar and the Japanese Yen on Monday as growing doubts about Spain continued to surface but, Euro Zone finance ministers stated Spain does not require a bailout just yet.
Ministers defended Spain on Monday, stating that the nation was taking steps to resolve debt issues and rescue its troubled economy.
Meanwhile, the World Bank scaled back its forecast for East Asia, and with rising concerns about the state of the global economy coupled with increasing nervousness surrounding corporate earnings, most investors were driven to safe haven currencies.
The main market focus on the European front then is on Spain and Greece. Expectations are that positive progress will be made as regards both nations however, I don't expect that progress will actually provide enough of a spark to be a major catalyst for the market.
The Dollar Index (DXY), which measures the currency against those of six major trading partners, has fallen by 4.6% and 3.9% in the first two rounds of Fed stimulus. However, analysts expect that the latest round of stimulus will have different results, as investors likely will demand the world's reserve currency as U.S. growth outpaces its developed counterparts.
The logic is that should the U.S. economy keep outperforming, then this shouldn't cause the U.S. Dollar much damage and that monetary easing is only a short term negative for the Dollar.
The Dollar Index was little changed at 79.506 today.
Ministers defended Spain on Monday, stating that the nation was taking steps to resolve debt issues and rescue its troubled economy.
Meanwhile, the World Bank scaled back its forecast for East Asia, and with rising concerns about the state of the global economy coupled with increasing nervousness surrounding corporate earnings, most investors were driven to safe haven currencies.
The main market focus on the European front then is on Spain and Greece. Expectations are that positive progress will be made as regards both nations however, I don't expect that progress will actually provide enough of a spark to be a major catalyst for the market.
The Dollar Index (DXY), which measures the currency against those of six major trading partners, has fallen by 4.6% and 3.9% in the first two rounds of Fed stimulus. However, analysts expect that the latest round of stimulus will have different results, as investors likely will demand the world's reserve currency as U.S. growth outpaces its developed counterparts.
The logic is that should the U.S. economy keep outperforming, then this shouldn't cause the U.S. Dollar much damage and that monetary easing is only a short term negative for the Dollar.
The Dollar Index was little changed at 79.506 today.
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