Can the US Dollar Make Ground Against the Euro?
Posted by Allison on 14 June 2011, 14:02
The picture between these two currencies was an interesting one – as ever – during May. The dollar was bagging 0.6729 against the Euro on day one, so the only question now was whether that would drop or increase as the month got underway.
The first week ended on a good note as the US dollar climbed to 0.6896 and stayed there. This was sufficiently close to the 0.69 mark to be very positive. But would it stay in that position or was this just a small upward climb?
If we thought the following week was going to be a slide back down for the dollar, we couldn’t have been more wrong. It was obviously a lot stronger than the Euro, because on Monday evening it had garnered a rate of 0.6945. This gradually increased to make the rate of 0.7065 on the Thursday evening, followed by a short drop to a still impressive 0.7002 on Friday.
So where would this take us? Would the dollar be able to hold onto this gain for the remainder of May? Perhaps the Euro would find some strength in the second half of the month and fight back against the dollar? The only way to go was onwards, to see what the answer would be.
There was far less movement the following week. There would be no huge gains or losses here, and instead the US dollar made it to a Friday night closing rate of 0.7023. But still the overall pattern was up, making us wonder whether the dollar would continue to have the upper hand as the month went on. Certainly it didn’t seem as if the Euro had much to offer by way of a defence at this point.
The next step was reached on the 23rd May when the dollar hit a high for the month so far of 0.7132. It dropped back to 0.7097 the next day before returning to the 0.71 territory again. But eventually it finished the month on 0.6951, although this was still better than the original starting rate.