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Bank of America Stress Test Result prompts Caution

By DailyForex.com
The U.S. Dollar saw some gains versus the Euro following the release of the results of the stress test recently done on the Bank of America. Those results indicate that the Bank of America is in need of additional capital; according to one source, that amount could be near $35 billion. That data encouraged investors to be more risk averse, and seek out safe haven currencies, such as the U.S. Dollar and the Japanese Yen. As reported at 7:38 a.m. (GMT), the Euro lost .1% versus the U.S. Dollar, trading at $1.3309, far below the recent month-long high trade of $1.3439, hit on Tuesday on the EBS platform. The Euro also lost against the Japanese Yen, falling .7% to trade at 130.81 Yen. The U.S. Dollar struggled against the Yen, losing .6% to trade at 98.31 Yen.

While markets are still waiting for the release of additional results of the bank stress tests, they remain cautious in advance of the Bank of England and European Central Bank meetings which are scheduled to be held tomorrow. Investors will also be on the look out for the results of the Purchasing Manager’s Survey of Euro Zone participants, as well as retail sales figures for March; both reports are expected to be released today.

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