Online trading Forex: Apparently the recovery of the euro was just a momentary situation, before it had reached its lowest price on the 1st of March 2013, according to Reuters.com.
The euro fell to its lowest level of the year against the dollar, while the dollar rose to a six-month high against a basket of currencies; as the weak euro zone and Asian data contrasted with more healthy U.S. economic measures.
Speculation that the European Central Bank may take action to curb economic deterioration gathered pace. With the euro dropping below $1.30 for the first time since December as data showed weakness in the European manufacturing sector and growth in Asia cooled.
Poor euro zone data, along with cooling inflation and the risk of political instability in Italy may push up borrowing costs for struggling countries. In turn, this could exert pressure on the ECB to lower interest rates in coming months. This might be bad news for those traders, who believed at the beginning of the week (Monday, 25th of February) that the euro was rising and bought the currency by online trading Forex, expecting to make some profit.
European and Chinese economies seemed to be very disappointing. But there are signs of economic improvement in the United States.
The pace of growth in U.S. manufacturing rose to its fastest rate in over a year and a half in February. Americans started to consume again since the rate of unemployment diminished and the economy is getting better.
The dollar index reached its highest level since late August. It gained as the euro fell to a 2013 trough of $1.2965, its lowest since Dec. 11. It last traded at $1.3014, down 0.3 percent on the day. The euro fell for a fourth straight week and at current prices has lost about 1.5 percent of its value against the dollar this week. For those traders that had dollars or traded against the euro by online trading Forex; the rise in the monetary value meant extra income
For most traders, the US dollar is a safe investment and the raising of its prices is a good opportunity. The dollar rose to a 2-1/2-year high against sterling after a shock contraction in manufacturing in February raised expectations that the Bank of England could announce fresh monetary easing as early as next week. Against the yen, the dollar last traded at 93.54 yen, up 1.1 percent on the day, according to Reuter’s data. Expectation of aggressive monetary policy action from the Bank of Japan has caused the dollar to notch impressive gains against the yen since late last year.
It seems to be a good moment to start online trading Forex to take advantage of the fluctuations and make good money.