The US dollar drifted lower during early Friday trading
FOREX
The US dollar drifted lower during early Friday trading, following a pattern initiated halfway through the previous session. The easing of fears over a potential financial crisis generated a rise in risk appetite, that penalized the safe-haven dollar. All week long the markets had been in a state of hypersensitivity to bank-related bad news, following a string of collapses in the US and big worries surrounding the situation at Credit Suisse. However, despite the tension, the week looks set to end on a positive note, with across-the-board rallies in risk related assets, following the handling of the problems in the US, by the local authorities, and the timely intervention of the Swiss Central Bank. Christine Lagarde also helped to ease tensions, when speaking on Thursday afternoon. The head of the European Central Bank confirmed the 50-basis points rate hike, and did so with confidence, calmly but surely assuring the markets that the ECB is monitoring the turbulence in the financial sector and has the tools to intervene whenever necessary.
Ricardo Evangelista – Senior Analyst, ActivTrades
The US dollar drifted lower during early Friday trading, following a pattern initiated halfway through the previous session. The easing of fears over a potential financial crisis generated a rise in risk appetite, that penalized the safe-haven dollar. All week long the markets had been in a state of hypersensitivity to bank-related bad news, following a string of collapses in the US and big worries surrounding the situation at Credit Suisse. However, despite the tension, the week looks set to end on a positive note, with across-the-board rallies in risk related assets, following the handling of the problems in the US, by the local authorities, and the timely intervention of the Swiss Central Bank. Christine Lagarde also helped to ease tensions, when speaking on Thursday afternoon. The head of the European Central Bank confirmed the 50-basis points rate hike, and did so with confidence, calmly but surely assuring the markets that the ECB is monitoring the turbulence in the financial sector and has the tools to intervene whenever necessary.
Ricardo Evangelista – Senior Analyst, ActivTrades
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