Against The Dollar In About Nine Months

World stocks dropped and the euro fell to a four-month low against the dollar on Tuesday after Greece said it would hold new elections and worries increased about its possible exit from the euro zone. Gold touched a 4-1/2-month low, with the euro's weakness unnerving investors over the profitability of holding euro-denominated assets. The political turmoil in Greece kept pressure on markets. Investors have been concerned that long-lasting problems in the euro zone and a likely recession will hit global growth. Greek politicians again failed to agree on a new government, nine days after an inconclusive election. After Greece's president said the country will hold new elections, the euro slumped and investors fled to the safe-haven dollar. The Greek news "triggered the fall through $1. ...

World stocks declined and the euro fell to a four-month low against the dollar on Tuesday after Greece said it would hold new elections and worries increased about its possible exit from the euro zone. Gold touched a 4-1/2-month low as the euro's weakness unnerved investors over the profitability of holding euro-denominated assets. The turmoil in Greece kept pressure on markets. Investors have been concerned that long-lasting problems in the euro zone and a likely recession in Europe will hit global growth. Greek politicians again failed to agree on a new government, nine days after an inconclusive election. After Greece's president said the country will hold new elections, the euro slumped and investors fled to the safe-haven dollar. The Greek news "triggered the fall through $1.2800 ...

Uncertainty over the impact of a potential Greek exit from the euro on the debt-laden 17-nation currency bloc drove a rush to safety by investors on Monday, sending the single currency to near four month lows and European shares down 1.5 percent. Problematic negotiations on forming a new Greek government have increased the chances it will be unable to meet the conditions of its bailout deal, and a worsening fiscal position in Spain has added to the sense of crisis facing the region. The list of political risks facing the euro area grew on Sunday when German Chancellor Angela Merkel's conservatives suffered a crushing defeat in an election in Germany's most populous state. "Selling rallies in risk assets seems the best way to make money in most asset classes given the event risk is still ...

Dukascopy Fundamental Analysis EUR Greece’s next government may hold a trump card worth more than $510 billion if it heeds voters’ demands to renegotiate its bailout with the European Union. USD Treasury prices declined on Thursday, pushing yields up from their lowest levels since February, as news out of Europe eased some near-term uncertainty and reduced demand for the relative safe-haven status of U.S. debt. GBP Bank of England officials halted stimulus expansion after seven months of bond purchases as the threat of inflation trumped concerns about an economy that’s succumbed to a double-dip recession. The nine-member Monetary Policy Committee led by Governor Mervyn King today held its quantitative-easing target at 325 billion pounds ($525 billion), ending a second round of stimulus. ...

Dukascopy Fundamental Analysis EUR European stocks dropped for a second day, to the lowest level in almost four months, as investors awaited a resolution to the political impasse in Greece and as Spanish credit risk surged. The Stoxx Europe 600 Index (SXXP) lost 1.1 percent to 247.75 at 2:15 p.m. in London, the lowest since Jan. 13, as the euro weakened for an eighth day. The Stoxx 600 has tumbled 9 percent from this year’s high on March 16, trimming this year’s advance to 1.3 percent. USD U.S. stock futures retreated, indicating the Dow Jones Industrial Average will drop for a sixth straight day, as Greece’s political impasse intensified concern about a worsening of the European sovereign-debt crisis. GBP U.K. retail sales fell the most in more than a year last month as poor weather ...

Fundamental Analysis EUR "The debt crisis damps demand for German products in Europe but Russia, China, India, Brazil and South Africa should generally be able to compensate declining sales." - Gerd Hassel, an economist at BHF Bank AG German industrial production unexpectedly soared in March, adding to signs the euro zone’s largest economy is weathering debt crisis. Production jumped 2.8 per cent from February, when it declined 0.2 per cent, said the Economy Ministry on Tuesday. USD "People are preparing for a shock that may or may not occur." - Michael Holland, chairman and founder of New York-based Holland & Co. U.S. stocks fell on Tuesday as Greece’s bailout pledge came into question. GBP "The health of the housing market is a reverberation of consumer confidence and credit ...

Fundamental Analysis EUR "The likelihood of inflation falling below 2 percent in the short run remains low, putting the ECB in a difficult situation." - Peter Vanden Houte, an economist at ING Inflation in the euro zone rose by more than expected in April, mounting pressure on the European Central Bank to take action against price pressures. USD "Manufacturing is still in pretty good shape." - Scott Brown, chief economist at Raymond James & Associates Inc. Manufacturing in the U.S. expanded in April at the fastest pace in 10 months, showed Institute for Supply Management data on Tuesday. GBP "The good news is that manufacturing clocked up a fifth straight rise, whilst cost pressures have eased a little and some firms are still recruiting." - Lee Hopley, chief economist at EEF U.K. ...

Fundamental Analysis EUR "The ECB should be preparing itself" for "the return of significant financial market tensions" - Silvio Peruzzo, an economist at Royal Bank of Scotland Group Plc Spanish "market conditions are not justified," said ECB Executive Board member Benoit Coeure on Wednesday. "Will the ECB intervene? We have an instrument, the securities markets program, which hasn’t been used recently but it still exists." USD "Import prices were certainly a problem for businesses in the last three months, but we’ve seen those pressures ease" - Jacob Oubina, a senior U.S. economist at RBC Capital Markets LLC U.S. import prices increased more than expected in March, 1.3 per cent, reflecting higher fuel costs, the Labor Department said Wednesday. GBP "The unusually warm weather in ...

Dukascopy Technical Analysis EUR/USD "Whereas in the past the dollar would tend to fall as risk appetite was rising, the dollar is now benefiting from pro-risk developments, as U.S. economic data has generally bested expectations recently" - Bank of the West (based on CNBC) Even though EUR/USD continues to hover just below 1.3291/1.3325, it is expected to move southwards in the nearest future. The initial support is at 1.3140, followed by 1.3130 (55 day sma) and 1.3004. EUR/JPY "It's possible to see euro pick up slightly as people work out the implications of the bailout package and better economic statistics Sentiment toward Europe is slowly improving" - St. George Bank Ltd. (based on Bloomberg) EUR/JPY is currently in a phase of a bearish correction, which may last until 105.65 is ...