| The US Dollar is again showing signs of strength. The | | | | favor due to its being seen as a haven currency. |
| American currency rose against most major | | | | 4. The decline in the price of oil. Oil prices are quoted in |
| currencies, gaining 0.9% against the Euro, 1.2% against | | | | dollars so there is usually a negative correlation |
| the pound, and 1.1% against the Swiss Franc. | | | | between these prices. |
| The strength of the dollar can be attributed to the | | | | All in all, it seems that my previous prediction for 2010 |
| following factors: | | | | are coming true: good year for the USD, bad one for |
| 1. A decline in unemployment in the US, as shown by | | | | the Euro. |
| yesterdays jobs data. This doesn't mean that the | | | | The Euro is really feeling the pressure at the moment. |
| World's largest economy is out of the woods, but it is | | | | The Euro lost ground to the USD, Yen, and Swiss |
| certainly a sign of hope. | | | | Franc in yesterday's trading. |
| 2. The ever spreading trouble of the Euro zone with | | | | There was a slight turnaround as the Swiss National |
| Greece, Portugal, and Spain showing signs that they | | | | Bank began selling Francs and buying Euros during the |
| will require intervention by the more wealthier | | | | Asian session is a desperate attempt to halt the |
| members of the EU to save their economy from ruin. | | | | growing power of its own currency. This helped the |
| This has been dragging down the Euro for weeks. | | | | EUR/CHF gain ground, for the moment at least, but it's |
| 3. Increasing risk aversion in the world financial markets | | | | unclear how far and how long such an intervention can |
| as a whole. This has usually worked in the USD's | | | | really help the troubled European currency. |