This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Lower Growth Outlook Hits Euro

The euro hit another all-time high in overnight trading Friday, but quickly gave up all the gains on news that Europe's economy will grow less than previously expected.

One euro would buy $1.4682, down from a record high of $1.475 reached before New York trading began. Late Thursday, the euro was trading at $1.4680.

The European Commission lowered its economic growth forecast for the 13 euro-using countries to 2.2% for 2008, down from 2.5%.

Speculators who had previously sold short the low-yielding yen and had invested the proceeds in the euro, where interest rates are higher, were unwinding their positions in the wake of broader market volatility, explains Marco Spaltro, currency economist at IDEAglobal in London.

The result was relative strength in the yen and weakness in the euro. Over the medium and long term, differentials in paces of economic growth and interest rates tend to drive the values of currencies, Spaltro says.

In other dollar-positive news, the Commerce Department reported a lower-than-expected trade deficit as exports surged because of the low value of the U.S. currency.

Elsewhere in the foreign exchange market, the British pound was slipping. One pound was selling for $2.097, down from $2.1104 a day earlier. The dollar was trading for 110.64 Japanese yen, down from 112.69 yen previously.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
DBV $24.67 0.00%
FXY $80.85 0.00%
JYN $47.54 0.00%
AAPL $128.95 0.00%
FB $78.99 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs