Euro Rallies to Three-Week High Vs. Dollar

June 30, 2008

In early Monday trading, the Euro continued to bob along the bullish wave that brought it to a three-week high of 1.5840 against the US dollar, before retreating back below 1.5780. Oil again rallied to another record high of $143.67 per barrel, so where else could the dollar go?

Today’s Chicago PMI manufacturing showed some improvement in the Chicago area, posting a reading of 49.6, still in contraction territory but at least not as bad as the previous month. This may stem the fall of the dollar as we enter the New York trading session. The US dollar’s fate this week will be determined by the US ISM manufacturing data to be released on Tuesday and the all-important non-farm payrolls reports for June on Thursday. A peek at the health of the labor market can be gleaned from Wednesday’s ADP private-sector report.

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