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Dollar Hits 1-Month High vs. Yen
Submitted by Forexyard on Fri, 22/06/2012 - 07:26
The US dollar was able to stage an upward recovery against several of its main currency rivals during European trading yesterday, following the Fed's decision to hold off on announcing a new round of quantitative easing earlier in the week. In addition, poor economic news out of the euro-zone caused investors to revert their funds to safe-haven assets.
After spiking close to 75 pips during early morning trading to reach as high as 1.5731, the GBP/USD staged a downward correction and eventually stabilized at 1.5685. Against the Japanese yen, the dollar advanced close to 60 pips, eventually reaching the 80.12 level, a one-month high.
Turning to today, traders will want to pay attention to the German Ifo Business Climate, set to be released at 8:00 GMT. Investors are concerned that the euro-zone crisis could be spreading to the region's wealthiest country. If today's news disappoints, investors may continue shifting their funds back to safe-haven assets which could result in upward movement for the greenback to close out the week. At the same time, any better than expected euro-zone news could help higher-yielding currencies recoup their losses, which would turn the dollar bearish.