Afternoon Forex Overview
The euro took losses against several of its main currency rivals yesterday, after worse than expected economic data out of Germany led to risk aversion in the marketplace. That being said, analysts were quick to say that expectations for future ECB action to lower Spanish and Italian borrowing costs would likely limit any euro losses. Today, traders will want to pay attention to a batch of US data that has the potential to inject volatility in the marketplace. At 12:30 GMT, the Trade Balance and Unemployment Claims figures will be released. If either signals growth in the US economy, risk taking may resume, which could help the euro recoup some of yesterday's losses.
Economic News
USD - US Data Set to Impact Markets Today
The US dollar saw a mixed day in the marketplace yesterday, as ...
Featured Product
Adam Cole, Global Head of FX Strategy at RBC Capital Markets, on the Cable and EUR/GBP.
I think the Cable might be influenced to the extent when the Euro is under pressure against the Dollar, it would tend to pull Sterling down with it. However, I think if we look against the Euro then Sterling tends to outperform in periods when Eurozone stress is elevated. In some degree for international investors the Sterling is seen as a substitute for the Euro and it tends to be beneficiary against the Euro itself when the shared currency is under pressure. We see slightly mixed picture, but looking at EUR/GBP, the Sterling tends to benefit.
Dukascopy Technical Analysis
EUR/JPY
"I will propose measures to stabilize financial markets, using the instruments at our disposal right ...
Featured Product
Melinda Burgess, FX Strategist at RBS, expressed her opinion on the key drivers of the US Dollar performance.
At the moment we see some Dollar weakness against G10 currencies, or more specifically against the Euro and other commodity currencies. I think this is largely a combination of some optimism around the fact that we may see a Greek government in place quite quickly and also the fact that there might be some more liquidity measures from the G20 central banks at some stage, given what we have heard from the G20 summit this week.
Dukascopy Technical Analysis
AUD/USD
"The market’s pricing for the extent of RBA rate cuts looks overdone. I don’t think the Aussie will get sold off too heavily, unless we get a real deterioration in the euro zone debt crisis. ...
MORNING BRIEFING: Pessimism over EU summit outcome continues to rise
What’s new:
Asia: Shares closed in the red as euro zone debt crisis extends
Japan: The Lower House committee passes tax, social security reform bills by a majority vote
Moody’s: Downgrades 28 Spanish banks from one to four notches
Forex: Commodity currencies recover due to short-covering
Rates in Asia and Indices:
EURUSD: 1.2495 - 1.2524.
USDCHF: 0.9589 - 0.9611.
GBPUSD: 1.5563 - 1.5588.
EURJPY: 99.30 - 99.88.
USDJPY: 79.43 - 79.79.
DowJones: 12'502.66 -1.09%
NASDAQ: 2’836.16 -1.95%
S & P 500: 1'313.72 -1.60%
Nikkei: 8'664.38 -0.80%
Shanghai: 2'221.11 -0.13%
Gold: $ 1'585.00
Crude Oil: $ 90.85
Comments:
Asian stocks were lower tracking the US market as investors remained skeptic about the ability of EU leaders to ...
Featured Product
Melinda Burgess, FX Strategist at RBS, expressed her opinion on the key drivers of the US Dollar performance.
At the moment we see some Dollar weakness against G10 currencies, or more specifically against the Euro and other commodity currencies. I think this is largely a combination of some optimism around the fact that we may see a Greek government in place quite quickly and also the fact that there might be some more liquidity measures from the G20 central banks at some stage, given what we have heard from the G20 summit this week.
Dukascopy Technical Analysis
EUR/JPY
"You have economic growth in the States probably running at about 2 percent annualized rate, and you've got growth in Europe a lot slower than that, so therefore in the relative growth scenario you ...
Fundamental Analysis
EUR
Spanish 10 year yield has reached 7.13% - the euro era record. Spanish sovereign debt securities are the worst performing amongst 26 markets after June 9, when Spain asked for around EUR 100b loan for a banking sector bailout. Such loan would increase Spains debt to around 90% of it's GDP. Specialists state that after such developments Spain most likely will be the fourth Euro nation which will require external funding.
Read more: FULL REPORT - Fundamental Analysis
Technical Analysis
EUR/JPY
"Even if we carry on getting a better outcome with respect to Greece we have still got Spain and problems there."
- Rabobank (based on CNBC)
EUR/JPY edged higher today as the pro-bailout parties took the lead in the Greek vote. If bullish trend to continue further, 101. ...
Featured product
Richard Timberlake, Professor Emeritus of Economics at University of Georgia, expresses his opinion on this proposal, as well as analyses the current situation in Eurozone and shares his outlook for the Euro bloc future.
The European monetary system under the Euro is a bureaucrat-made substitute for the Gold Standard. The Euro is analogous to "gold" and all the other currencies are based on it. If the Deutsch-mark were to become an independent currency again, it would supplant the Euro and become the new quasi-gold currency. Such maneuverings would not save the Euro or the Eurozone. Far better to start over with a true Gold Standard. Under a gold standard each politically separate country MUST manage its affairs so as to keep its currency redeemable in gold at the fixed ...
Featured product
Richard Timberlake, Professor Emeritus of Economics at University of Georgia, US
The European monetary system under the Euro is a bureaucrat-made substitute for the Gold Standard. The Euro is analogous to "gold" and all the other currencies are based on it. If the Deutsch-mark were to become an independent currency again, it would supplant the Euro and become the new quasi-gold currency. Such maneuverings would not save the Euro or the Eurozone. Far better to start over with a true Gold Standard. Under a gold standard each politically separate country must manage its affairs so as to keep its currency redeemable in gold at the fixed price.
Dukascopy Technical Analysis
EUR/JPY
"The recovery in the euro is being driven by expectations that one, Greece will vote for a pro- ...
Dukascopy Technical Analysis
EUR/USD
"Europe's debt problems are the biggest risk to the global and Japanese economies."
- Masaaki Shirakawa, BoJ governor (based on Reuters)
EUR/JPY slightly rose today as the Eurozone members discuss the European banking union to help Spain to preserve its financial system.
More broadcasts Read Full Report
Dukascopy Fundamental Analysis
USD
On Wednesday, the U.S. Dollar pared gains versus the Yen, as the weak economic U.S. data weigh. The Commerce Department reported that sales in the U.S. fell by 0.2%.
Expert Commentary
"Lack of adequate supervision and regulation was one of the main reasons for the GFC."
Dr. Cooray, University of Wollongong, Australia, on the global financial system. >>
Press Review
Europe
Germany warns Italy over euro zone ...