Both dollar and euro rose versus the yen on Friday morning in Asia, as the fear of spreading of swine flu started to vanish. But events, that are about to happen in both Europe and the States will hit the Forex market with declining rates for both currencies.
American currency was pressured in early European trades due to end of month dynamics for fixing. Euro was rising in the first half of the day, reaching the level of 1.3385 against the dollar, and then decreasing back to the level of 1.3200.
Pound of sterling increased to its two-week high against the American dollar, as risk-sensitive currencies became more popular among traders due to positive outlook on the future of global economy.
The Yen was weakening significantly due to some concerns about further economic decline in Asia. The Australian dollar went up on Friday, as traders are waiting for coming out of information from the Australian Reserve Bank regarding its further policy.
Although euro is now higher than other currencies, it is likely to decrease next week after the announcement of policy settings of the Central Bank of Europe. The American banks’ stress tests are also considered to give weakening result to the American currency, if the banks will require more capital.