The Euro advanced against the U.S. Dollar as the IFO Index of German Business Confidence remained at 114.2. This supported speculation that the European Central Bank will raise the cost of borrowing money. The Euro currency traded at $1.4100 at 5 pm GMT. Other currency market charts revealed that the Norwegian Krone rose against all of its peers, except for the Kiwi, as crude oil prices surpassed $100.00 per barrel for July deliveries. Norway is a major oil exporter. Other data showed that the Euro gained against the Canadian Dollar; this took place as Greek Prime Minister, George Papandreou, said his country won’t be able to tap the market in 2012 as the E.U. made investors believe Greece will not be able to handle the debt situation.
The British Pound erased gains against the Euro as Moody’s Investors Services issued a statement indicating it may lower the credit rating of 14 major banks in the U.K. On the economic front, metrics revealed a widening in the budget deficit. However, the Pound Sterling managed to strengthen against its other trading counterparts.
Meanwhile, the New Zealand Dollar strengthened against all of its 16 counterparts on central bank reports that indicated a higher inflation outlook.
The U.S. Dollar dipped on data showing that the Federal Reserve Bank of Richmond’s Manufacturing Index fell to -6 for the month of May.
The Japanese Yen also fell against its peers after a stellar performance in the trading markets at the beginning of the week.