19th September 2011
Analysts are predicting a strong week for the US dollar (USD) as it is expected to outperform sterling, the euro and the Australian dollar (AUD) over the coming seven days.
According to Reuters, a failure by European leaders to calm worries over the eurozone debt crisis over the weekend has resulted in the currency slumping in forex trading today (September 19th).
Furthermore, market talk regarding an Asian sovereign account selling of its euros and AUD has helped push up the greenback in early trading this morning, with AUD down by one per cent to $1.0251.
"The weekend meeting of the EU produced nothing decisive and a lack of direction will raise questions about solvency," Lena Komileva, senior vice president for foreign exchange at Brown Brother Harriman told Reuters.
"We expect the euro to retest the September 12th low of just below $1.35 in coming days."
Last week, AUD saw significant weakness against USD, dropping to a five-week low of $1.0184 at one point.
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