Topic: Foreign Exchange

The euro rose against the dollar on Thursday, snapping eight straight sessions of declines as stress in Spanish debt markets eased and Greece secured funds to repay its bondholders.

The euro slid on Wednesday against the dollar to a 3-1/2-month low, falling for the eighth straight session, on concerns that political turmoil in Greece could threaten its rescue deal and as fears rise about the risks posed by Spain's banks.

The euro fell for a seventh straight session against the dollar on Tuesday on worries that political uncertainty in Greece and a French leadership change could threaten austerity plans seen as key to tackling the euro zone debt crisis.

The euro slid across the board on Monday after the outcome of elections in Greece and France cast doubt on the political will and commitment to austerity plans regarded as key to tackling the euro zone debt crisis.

Australia is headed for the “mother of all hard landings,” according to Société Générale strategist Albert Edwards, who says the country’s “credit bubble” could burst if China’s economy suffers a sharp slowdown.

The dollar slipped against the yen in volatile trading on Friday after a key U.S. April jobs report painted a mixed picture about the health of the economy.

The euro dropped versus the U.S. dollar on Thursday, after European Central Bank chief Mario Draghi gave a more upbeat assessment of the euro zone economy than expected, reducing expectations of further monetary easing.

The Australian dollar carry trade, popular among investors to cash in on the interest rate differential between countries, is losing its appeal following the Reserve Bank of Australia’s (RBA) interest rate cut, say forex strategists, who expect further policy easing by the central bank this year.

The euro fell for a third straight session against the dollar on Wednesday after soft European data rekindled fears about a deep and broader slowdown in the region ahead of key elections in France and Greece.

Having witnessed weak data reignite fears over global growth and the euro zone debt crisis stock investors could be forgiven for deciding to book first quarter gains and sell in May. In 2010 and 2011 a strong first quarter of the year was followed by heavy selling but one analyst believes this will not happen again in 2013.

The Australian dollar fell sharply after the Reserve Bank of Australia slashed rates by a deeper-than-expected 50 basis points.

The euro dropped against the dollar on Monday and was on track for its worst month since December, weighed down by news of Spain slipping back into recession and signs of weaker economic momentum in the United States.

The euro recouped losses on Friday after a smooth Italian bond auction eased concerns over peripheral euro zone debt markets.

The euro was little changed against the dollar in a volatile session on Thursday which saw the single currency swing from a three-week high to losses and then higher after signs of a pickup in U.S. housing raised risk appetite.

The dollar gained against the yen and euro on Wednesday after the Federal Reserve gave no hints of further stimulus to the U.S. economy before 2014.