The dollar rose to a two-year high against the euro after today’s better US data on gross domestic product, which marked an increase of 5.0 percent last quarter. Today we expect the results of initial jobless claims, as forecast to decrease, further pushing up the dollar. The greenback rose by at least 5% compared to all 16 major currencies. The dollar was trading at $ 1.2171 per euro. This year the dollar has risen by 13% compared to 10 of the world’s currencies and are expected to persist due to speculation about the earlier increase in interest rates by the Federal Reserve.
The euro fell against most world currencies after the European Central Bank is moving towards quantitative easing. The vote in Greece again fail, and if after the next final stage again not reach consensus would lead to early parliamentary elections, which will inevitably intensify doubts about the stability of the market. Expectations for financial incentives from the ECB will probably depreciate the single currency. “More and more people expect the ECB to start buying government bonds, which will devalue the euro against most currencies, if it becomes a reality” sporeliha of Sumitomo Mitsui Banking Corp.
Australian and New Zealand dollar rose today in Asian rally. Kiwi rose against 14 currencies after the MSCI Asia Pacific Index of shares rose 0.6%. The rise of the New Zealand currency against the US dollar by 0.1% and Australian grew by 0.2% against the greenback.