- POSTED: 12 Jul 2014 06:13
The dollar and euro moved only slightly in foreign-exchange trading as fears about a large Portuguese bank eased, with the market looking ahead to next week's packed economic calendar.
NEW YORK: The dollar and euro moved only slightly in foreign-exchange trading on Friday as fears about a large Portuguese bank eased, with the market looking ahead to next week's packed economic calendar.
"Currency and financial markets stabilized as worries about new debt problems in Europe abated," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
Portuguese authorities managed Friday to ease wider market fears over the health of the country's biggest listed bank Banco Espirito Santo, which is being hammered by its parent group's debt woes.
"There is no reason to doubt the security of the funds entrusted to the BES, and its savers have no need to be worried," Portugal's central bank said in a statement.
Concerns that the bank's troubles could have a wider impact on Portugal - which only two months ago exited a three-year, 77-billion-euro ($106 billion) international bailout - had rocked global markets Thursday as questions resurfaced over eurozone debt.
"The euro potentially has a lot to lose should the recent troubles with one of Portugal's biggest banks develop into a full-blown crisis. For now though a tentative calm has washed over markets, allowing the euro to catch its breath," Manimbo said.
Kathy Lien of BK Asset Management said that next week's charged calendar could spark bigger moves in currencies.
Topping her list was Federal Reserve Chair Janet Yellen's semi-annual testimony to Congress on the US economy and monetary policy, on Tuesday and Wednesday.
"Everyone wants to know when the Fed will start raising interest rates so rest assured, members of Congress will pepper her with questions about tightening," Lien said.
Other potential forex movers she cited included earnings reports from JPMorgan Chase, Goldman Sachs and General Electric; Chinese second-quarter economic growth numbers, and US retail sales.