Weekly FX roundup: Dollar, Gold soar as investors seek safe haven assets

10 May 2010

The currency markets were under pressure last week and the US Dollar soared as investors fled to safe haven assets like the Greenback and Gold on the continued erosion of risk sentiment. With no news of the EU extending the historic bailout package to the Hellenic Republic and risk contagion threatening to affect other susceptible European nations like Spain and Portugal, the EURUSD was severely weighed down last week, hitting a 14 month low at 1.2521 before closing the week at 1.2768, lower by 4.09%. However traders were greeted to the announcement that EU finance ministers put together an unprecedented loan package worth nearly $1 trillion to restore faith in the common currency and prevent contagion from Greece.

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