Euro Gains On Dollar As See-Saw Trade Continues

(RTTNews) - The euro pared its early losses along with European stocks Friday morning, despite lingering worries about the region's banking system and a possible double-dip recession. Swiss banks UBS and Credit Suisse have denied taking advantage of a U.S. credit swap facility, raising hopes that other European banks are sufficiently capitalized.

Stock markets across Europe suffered brutal losses over the past two sessions, but have stabilized in the past few hours. The euro has withstood the meltdown in the equities markets, and with today's gains is little changed on the week versus the dollar.


The single currency rose more than a penny in the past hour, jumping back to $1.4415. The pair has wobbled bear that mark for the past few months. There was no economic news from the U.S. this morning, following yesterday's dismal manufacturing figures.

JPMorgan Chase & C slashed its U.S. growth forecasts this morning. Analysts at JPMorgan predict that gross domestic product will grow 1 percent in the fourth quarter rather than the 2.5 percent previously forecast and 0.5 percent in the first quarter of 2012 instead of 1.5 percent.

The euro rose to Y110.15 versus the yen, and barely budged near CHF 1.1325 versus the Swiss franc.
The Swiss franc has backed away from record highs near parity, as Swiss authorities have vowed to weaken their currency in support of exporters.


In economic news from the euro zone, German producer price inflation accelerated in July after easing to a six-month low in June, data from the Federal Statistical Office showed Friday. Producer prices increased 5.8 percent year-on-year in July, while economists expected a 5.3 percent rise.

Read more at ironfx.com