The U.S. dollar remains weak against its major counterparts as American initial jobless claims come in at the lowest level since April 2008

The U.S. dollar remained weak against almost all of its major counterparts yesterday, as data showed that American initial jobless claims slid to the lowest level since April 2008. Risk sentiment remained, supported by hopes that Greece was nearing a debt-restructuring deal with its creditors.

The European Union said new proposals are being drawn up for Greece’s second bailout package, and went onto say that the group ‘strongly supports’ increasing the International Monetary Fund’s lending capacity as the sovereign debt crisis drags on the global financial system. There are however many risk factors involving the Greek negotiations that could potentially derail the euro. 

The euro rallied to a weekly high yesterday, following a better-than-expected bond auction in Spain. The Country raised more than its maximum target at its debt sale and offered lower yields, boosting optimism that the region’s sovereign-debt crisis is being contained. 

The IMF were given the cold shoulder by the US and other Nations when asked to contribute to a $600Bn fund they are looking to prepare to help global markets as the world GDP figures were slashed once again.

As we have been mentioning all week, the euro has strengthened against the pound and this may continue heading into the weekend. This is due to the short-term containment in the Eurozone, with Greek Prime Minister Lucas Papademos racing to lower his nation’s debt.

If you are wondering when the euro will run out of steam, please contact our dealers on the number below. 

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Institutions named in this article:

IMF: The International Monetary Fund - An organization of 187 countries, aimed at fostering global monetary cooperation, secure financial stability, to promote international economic cooperation, international trade, employment, and exchange rate stability.