FX round-up: Euro gains after leaked Chinese data

Date: Thursday 10 Jun 2010

The dollar fell against the euro on Wednesday following comments from Federal Reserve Chairman Ben Bernanke earlier in the week about the US economic recovery and a leaked report on Chinese exports.

The dollar’s safe haven status was less in demand after Bernanke said, “the recovery was underway but wouldn’t feel terrific.”

He also soothed some fears about the debt crisis in Europe saying he didn’t believe the knock on effect on the US would be as bad as feared. The comments were enough to send the dollar low and riskier plays such as the euro higher.

The euro stabilised against the dollar, rising 0.8% to $1.2067 on Wednesday after slumping below the $1.18 mark earlier in the week. The greenback was also down 0.3% against the Japanese yen and 0.5% lower against Sterling.

The dollar also came under pressure following reports that China's May exports surged 50% from the same time a year ago. Official figures are due out Thursday but if it is true, it exceeds predictions of a 30% rise.

The leaked Chinese report helped spur risk appetite and eased fears of a double dip recession in Europe.

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