The Euro continued on its downward trend against the majority of its Forex trading peers despite efforts by the European Central Bank to inject liquidity into the financial system. The ECB loaned a record amount of cash to 800 of regional banks; however, this failed to convince investors that the Euro-zone crisis is improving. Meanwhile, trading markets await an ECB decision on interest rates set for the upcoming meeting on March 8th.
The U.S. currency rose to a nine-month high against the Yen following statements by the Federal Reserve Chairman, Ben Bernanke, suggesting that the central bank won’t implement another round of quantitative easing for the time being.
The Canadian Dollar strengthened versus the greenback after economic reports indicated that China’s purchasing manager’s index increased for the third consecutive month. Also, the U.S. reported that the labor sector added 210,000 new jobs in February. The Loonie continued to rally as crude oil reached the highest price since 2008.
The British currency posted the biggest weekly advance against the Euro on news that the ECB awarded a record amount of cash in the form of 3-year loans to regional banks. The Sterling was also supported by speculation that the U.K. won’t expand its asset-purchasing program.
The Aussie Dollar gained against the Yen after economists predicted that the Reserve Bank of Australia would leave interest rates unchanged given the improvement in global growth. The Aussie Dollar rose against most of its currency counterparts as U.S. manufacturing expanded.