Forex: Dollar down on the day, but against Euro

July 31st, 2010

FXstreet.com (Buenos Aires) – Following the weekly trend, dollar is quite negative on daily basis against major rivals, with one single exception: the so long suffered Euro. News of an IMF report warning about Spain outlook to remain uncertain, are again weighting on the common currency, as despite the recently gained bullish momentum that lifted the EUR/USD from 1.1870 to 1.3106 yesterday’s high, fears regarding the fragile situation in the EU are still fresh in investors’ minds.

Could the pair hold its tone in August? With summer holidays already among us and the typical lack of volume expected at this time of the year, Euro will be facing a major challenge to extend and sustain recent gains. For now, and about to close the week above the 1.3000 area despite intraday weak tone, seems still possible, yet will be interesting to see if investors will remain so willing to keep on buying the hegemonic currency, after failure to overcome 1.3100 today.

Source:fxstreet.com