Dollar Trades Weaker Against Euro Again

By Stewart Douglas

The value of the euro has yet again traded strongly up on the dollar on international currency exchanges, as the greenback continues to weaken in the face of poor macroeconomic figures published today.

The euro has traded up against the dollar for several successive sessions as investors heavily sell the dollar for fear of further interest rate cuts and problems with the US economy as a whole, which could suggest even further devaluation of the currency.  Conversely, the euro has been seen as the currency of choice in recent sessions, with rising potential for an interest rate hike at the European Central Bank later in the month.

In early morning trade today the euro was up to a new all time record against the dollar in what has been a weak of record breaking trade, up to $1.4189 against the record set yesterday morning of $1.4162 to the detriment of European export businesses.

With US durable goods demand shown to have fallen beyond analysts’ expectations, and the anticipation of US new home sales data later today, analysts have been steadily offloading the dollar in anticipation of poor results.

The value of the euro has already started to cause problems for companies within the eurozone, with airplane manufacturer Airbus already warning that it may have to lay off staff if the euro continues to trade so strongly.

The underlying problems with the US economy have been underlined by the fact that despite its record low value, which should see exports rise in popularity, demand for durable goods has shown to have fallen over the course of the month.

And with US consumer confidence down at a sixteen year low, it looks likely that the value of the dollar will continue to trail at the foot of international currency exchanges for the foreseeable future.