Forex Trading: US Dollar Stronger Against Euro Following G20 Summit

The USD opened the trading week with a bid in Asia following the G20 summit this weekend. After weeks of negative talk about the continuation of the USD as the world’s reserve currency, a comment from Russia’s Finance Minister Kudrin suggesting that the role of the Dollar in the world is unlikely to change significantly in the near future and adding that Russia has confidence in the USD and will continue to hold the dollar as Russia’s reserve currency, has helped the market buy dollars against Euro’s.

Also weighing on the Euro are weaker equity prices and comments from the President of the German Chamber of Commerce and Industry that the liquidity crunch  is increasingly threatening the survival of companies, with the DIHK survey in Germany showing credit conditions tightening further.

On the chart below we see the 21 day moving average supporting the EUR/USD pair the entire week, with further support at the 61.8% retracement.

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