The EUR/USD slid to 1.3280 in today’s trading as overnight pressure built on Greece. The country’s stocks and bonds fell as the risk premium demanded by investors continued to rise. The Euro did manage to pare its losses in NY trading. In other news the BOE held rates steady and posted some strong production data while US jobless claims came in higher than expected. News Provided by FXTimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
Recap: The EUR/USD slid below 1.3350 in today’s trading continuing its decline from the beginning of the week, while the EUR/JPY was testing the 125 support level. The Pound and Aussie consolidated in today’s trading, while the Canadian Dollar gave back some recent gains after touching 0.9750 against the greenback. News Provided by FXTimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
Recap: The Aussie pushed to its highest level against the US Dollar since mid-January as the RBA hiked rates to 4.25%. Greek bonds and credit default swaps came under renewed pressure following the return of European traders from holiday and the EUR/USD fell to the 1.3350 area. The USD/CAD hit parity, the USD/JPY receded on lower US Treasury yields, and the GBP/USD managed to win back its losses from the overnight session. News Provided by FXTimes/CMS Forex www.fxtimes.com http Analyst: Nick Nasad Open up a free practice account and start trading Forex today.
www.fxtimes.com The Euro was softer overnight after Moody’s knocked Spain’s credit rating, the Pound slid following a weak Jobs Report, and in the NY session, the USD firmed after consumer Inflation and Manufacturing Data. Let’s look at our top stories.. Euro Feels Pain From Moody’s Warning on Spain The euro hit a fresh all-time low against the safe-have Swiss franc in European trading hours Wednesday as euro-zone sovereign debt concerns resurfaced after Moody’s Investors Service Inc. placed Spain’s sovereign credit rating on review for downgrade. Moody’s may downgrade its ratings on Spanish government debt, citing the country’s challenging refinancing needs next year and a complicated outlook for the country’s banks and regional governments. The rating agency said a downgrade could be triggered by “Spain’s vulnerability to funding stress given its high refinancing needs in 2011,” a problem that has recently been amplified by fragile market confidence. USD Supported by FOMC, GBP Down on Employment Data US — The USD was supported overnight against the yen and the commodity-linked currencies of Canada and Australia after the Federal Reserve’s policy statement reinforced expectations that it would complete its plan to buy $600 billion of Treasurys by June. The greenback benefited as the Fed didn’t show clear signs that more quantitative easing is needed to revive the US economy. Meanwhile, the pound lost some ground against the dollar after data showed UK unemployment in …
fxtimes.com Summary The main stories from overnight included European leaders creating a debt mechanism beyond 2013, Moody’s downgraded Ireland’s credit rating 5 notches, and the German IFO Business Climate Index jumping to a record high. The EUR/USD was supported overnight, but lost its momentum after hitting the 1.3350 area. 1. European Leaders Create a 2013 Debt Mechanism — the stated purpose of the EU Summit. But there wasn’t any more movement on other immediate measures that can be taken to stem the debt crisis. Yesterday, the ECB did raise more capital from the EU, and seems to be the party that will continue to try and support periphery bond markets with strategic buying of bonds. For now, Germany has said no to adding more funds to the 750 billion euro emergency fund, or using it more flexibly, for instance using it to buy bonds of troubled countries. So, what did we accomplish? The current status quo is now moved past May 2013. That seems to miss the point about the current situation worsening. In Merkel’s comments, she said she was impressed by measures taken by Portugal and Spain, and that 2011 will be the year of reforms for many euro-zone countries. Some other choice highlights include – Germany and others will do everything to secure the stability of the Euro, the rescue fund is sufficient, the crisis mechanism is an expression of solidarity, and agreements made yesterday is a step towards a European economic governance and the Europe will grow closer …
Find more News at www.fxtimes.com. We start this week with the Euro being pressured as a result of widening spreads on Irish government bonds and rising credit default swaps. There are concerns that Ireland will not be able to meet its deficit reductions and will have to tap the EU Stabilization Fund. That would be a negative Euro event, and has the Euro already on the back-foot to start the week. News Provided by FXTimes.com http Chief Market Analyst: Nick Nasa
Find more News at www.fxtimes.com. The USD and JPY rose on safe haven flows as investors worried about euro-zone debtloads and a deadly exchange of fire between North and South Korea. Equties fell for another day, and the Yen saw very strong swings against European and commodity currencies. The currency environment suggests this mood in financial markets will continue. News Provided by FXTimes.com http Chief Market Analyst: Nick Nasad
Looks like the US Dollar finally sees some life. In today’s trading, risk aversion was the major theme, and we saw the safe-haven Dollar gain sharply across the board. China’s one-year lending rate will increase to 5.56% from 5.31% starting tomorrow, and the deposit rate will increase to 2.5% from 2.25%. Higher yielders and commodity currencies slide sharply. News Provided by FXTimes.com www.cmsforex.com Forex Market Analyst Nick Nasad
The Euro fell against its rivals following Trichet’s press conference in which the ECB did not provide a new plan to buy more sovereign debt. With equities higher and risk appetite continuing into a second session, we saw the EUR/USD rebound after some knee-jerk selling. Commodity currencies were stronger, with the AUD and CAD breaking some short term levels.
Find more News at www.fxtimes.com. Stock and commodity markets succumbed to a one-two punch as fears of emerging economies boosting interest rates to battle inflation – a development that could hurt global growth – and uncertainty about what will happen with Ireland and the EU, caused markets to sell off – first in China, but spreading to Europe and the US. With investor sentiment staggered by the news, the USD was a prime benefactor on the back of safe-haven flows. News Provided by FXTimes.com http Chief Market Analyst: Nick Nasad