US dollar jumped on Wednesday versus its major rivals in reaction to disappointing Spanish bond auction while ECB’s President, Mario Draghi said that central bank is nothing thinking to quit its accommodative monetary policy.

Draghi commented that rising inflation in euro zone is major risk for the region’s growth and bank’s non-standard measures which includes liquidity measures. Further to add, sharp increase in yields of Spanish and Italian bonds created more uncertainty among investors.

The euro declined to 1.3139 against the US dollar on Wednesday as compared to 1.3231 on Tuesday’s late trading hours.

The ICE dollar index DXY which tracks the greenback’s movement versus its six major rival currencies surged to 79.764 on Wednesday as compared to 79.410 in Tuesday’s North American trading session.

Among other currencies, the British Pound fell to 1.5890 against the US dollar as compared to 1.5901 on late Tuesday. The Pound Sterling remained lower in reaction to the comments of the British Chambers of Commerce report according to which more support is needed for UK’s private sector.

The US dollar however remained lower versus the Japanese yen in reaction to bearish stock markets around the globe. The greenback fell to 82.49 against the Japanese yen on Wednesday as compared to 82.87 on late Tuesday.

The Australian dollar fell to 1.0256 against the US dollar on Wednesday as compared o 1.0309 on late Tuesday.

The euro gained versus the US dollar on Thursday as the latest reports indicated chances of higher participation in bond swap deal by Greece’s Creditors. The investors were now on the ease as the threat of messy default by the Greece by eliminated.  As per the latest reports more than 75 percent of private creditors were interested in swap deal. Investors were upbeat about the single currency after the European Central Bank’s President Mario Draghi pointed out the progress of euro zone’s economy in an optimistic manner. In his monthly conference the ECB’s President rated the central bank’s long term refinancing operation as unquestionable success for reducing the risk of credit default.

The euro gained to 1.3286 against the US dollar on Thursday as compared to 1.3154 on Wednesday’s North American trading session. The pair EUR/USD touched the intraday high of 1.3133. The euro also gained versus the Japanese yen to 108.40 on Thursday as compared to 106.80 on Wednesday.

Analysts on the other hand has a different opinion and said that the long term fundamental outlook for the euro zone weak. Some of analysts were also of the opinion that the shared currency is also trading at its highs technically and would see correction. According to MacNel Curry from Bank of America Merrill Lynch the euro is expected to decline to 1.2621 against the US dollar while analysts from RBC Capital are looking at 1.31 for EUR/USD pair.

The dollar index DXY which measures the US dollar’s performance versus its six major rival currencies declined to 79.090 on Thursday as compared to 79.692 on Wednesday’s late trading hours.

Among other currencies, the British Pound gained to 1.5833 against the US dollar on Thursday as compared to 1.5743 on late Wednesday. Against the Japanese Yen, the US dollar advanced to 81.60 on Thursday as compared to as compared to 81.21 on Wednesday’s late trading hours.

The greenback gained versus its major rivals on Wednesday in reaction to US Federal Reserve’s Chairman Ben Bernanke comments. Bernanke said that the US economy is sending mixed signals. Bernanke said that despite that fact the oil driven inflation is temporary and market issues around the globe seem less risky still US economic recovery is doubtful.

However the most of the analysts had a different opinion on Bernanke comments as they interpreted less chances of third round of quantitative easing now.

Director of currency research, Kathy Lien from GFT commented, “Although the Fed chairman believes that monetary policy needs to remain extremely accommodative, there is no immediate need for QE3,” on ECB’s loan amounts she added, “this dynamic explains why the euro/dollar fell so steeply on the back of Bernanke’s speech — one central bank will be keeping their balance sheet unchanged while the other takes actions to expand it.”

The euro remained under pressure in the European trading session as the region’s banks availed more loans in ECB’s LTRO than expected. The single currency declined to 1.3334 versus the US dollar on Monday as compared to 1.3473 on Tuesday’s North American trading session.

The dollar index DXY which tracks the greenback’s movement versus its six major rival currencies gained to 78.799 on Monday as compared to 78.222 on Tuesday’s late trading hours.

Among other currencies, the British Pound gained to 1.5925 on Monday as compared to 1.5899 on late Tuesday. Against the Japanese yen the greenback advanced to 81.21 on Monday as compared to 80.50 on Tuesday.

Euro gained versus the US dollar on Tuesday and reached its highest in three months as investors were expecting ECB to inject long term liquidity to boost the single currency region’s financial system. The single currency also saw some pressure in reaction to statement by Ireland to hold its referendum on European Union’s fiscal treaty. However the traders were upbeat that the ECB’s loan operation for next three years will boost banks and stock markets. In its earlier refinancing operation by ECB, more than 500 banks availed the financing of 489 billion euros equivalent to $657.1 billion. Now analysts are expecting the figure of 500 billion euros in coming financing operation.

Global head of foreign-exchange strategy at RBC Capital Markes commented, “There is no consensus on how a larger allocation would drive the euro, but our view is the primary transmission mechanism is through risk appetite and a larger allocation at the LTRO would be euro-positive.”

The euro surged to 1.3473 versus the US dollar on Tuesday as compared to 1.3405 on Monday’s North American trading session. This was euro’s highest since December. The euro also gained to 108.41 against the Japanese yen as compared to 107.87 on late Monday.

The dollar index DXY which measures the US dollar’s performance versus its six major rival currencies declined to 78.222 on Tuesday as compared to 78.547 on Monday’s North American trading session.

Among other currencies, the British Pound gained to 1.5899 versus the US dollar on Tuesday as compared to 107.87 on late Monday. Against the Japanese yen, the US dollar traded at 80.50 as compared to 80.51 on Monday while the Australian dollar surged to 1.0772 on Tuesday as compared to 1.0761 on Monday.

On Tuesday, preliminary data on manufacturing and service sector activity was published in euro zone while Germany and France published their individual reports on the respective sectors. Data on industrial new orders was published in euro zone while in Switzerland, UBS consumption indicator was released.

On Wednesday, in euro zone, report on German business climate was released by Ifo Institute. European Central Bank’s President Mario Draghi spoke at a public event. In United States, industry data on pending home sales and crude oil inventories was released while US Federal Reserve released its federal funds rate and official rate statement.

On Thursday, United States will release its official data on durable goods, unemployment claims and new home sales while in euro zone, report on German consumer climate by Gfk market researchers will be released. Industry data on realized sales is expected in United Kingdom. Market in Australia will remain close in observance of a national holiday.

On Friday, ECB will release its report on M3 money supply in euro zone while Switzerland will report its KOF economic barometer. In United States, official data on GDP for the fourth quarter will be published while University of Michigan will release its revised data on consumer sentiment and inflation expectations.

The US dollar fell on Tuesday in reaction to strong US housing data which supported US stock markets and commodities. As per the latest data on US Commerce Department, the US housing starts gained to 9.3 percent in the month of November which was the highest since April 2010. Further to add pressure on the greenback, in European session Germany’s Ifo business climate index for the month of December was released with gained. Spanish auction also went well resulting in lower borrowing costs for Spain.

The US dollar gained on Monday against its major rivals in reaction to the euro zone debt problems as the ECB president also showed his concerns over the region’s future outlook.

The dollar index DXY which measures the US dollar’s movement against its six major counterpart currencies declined to 79.871 on Tuesday as compared to 80.374 on Monday’s late trading hours.

The single currency gained to 1.3079 versus the greenback on Tuesday as compared to 1.2997 on Monday’s North American trading session.

Among other currencies, the British Pound gained to 1.5663 versus the US dollar on Tuesday as compared to 1.5497 on late Monday. Against the Japanese yen, the greenback fell to 77.90 as compared to 78.03 on Monday’s late trading hours.