As Europe Slips

Gold eased on Monday after elections in France and Greece at the weekend reflected strong anti-austerity feeling and raised concerns over the euro zone's ability to battle its debt crisis, knocking the euro to a three-month low versus the dollar. Greek voters in particular rejected the austerity-for-aid policies that have shielded the country from bankruptcy and a euro exit, dealing a serious blow to the euro zone's fragile political consensus on debt. Assets seen as higher risk, like stocks and commodities, came under pressure along with the euro. European stocks slumped to 4-1/2 month lows, Brent crude oil fell to its lowest since January, and safe-haven German Bund futures hit record highs. Spot gold was down 0.1 percent at $1,639.60 an ounce at 0942 GMT, having earlier dropped as ...

After falling throughout the morning session, the euro was able to stage a partial recovery during afternoon trading yesterday, following comments from ECB President Draghi who reiterated his earlier predictions of euro-zone economic growth during the second half of the year. Turning to today, investors will be carefully monitoring the US Non-Farm Payrolls, set to be released at 12:30 GMT. Analysts are forecasting today's news to come in at 173K. While that number would represent a significant increase over last month's Non-Farm figure, it is not considered high enough to signal strong growth in the US labor sector. Still, should today's news come in at or above expectations, the greenback could see gains to close out the week. Economic News USD - All Eyes on Today's US Non-Farm ...

Forex Morning Briefing : RBA surprises with 50 bps cut What’s new: Forex: Aussie tumbles on RBA rate cut; euro off two-week lows against yen Global Markets: Asian shares hurt by concerns over US and European economies, lifted by RBA Australia: RBA cuts rates by 50 bps to 3.75 percent China: Manufacturing PMI rises as expected to 53.6 Euro zone: Eurogroup head quits citing intolerance to Franco-German interference Euro zone: Spain slips back into recession United States: Fed’s Fisher and Williams say no need for further monetary easing United States: ISM manufacturing index due today at 16:00 CET Rates in Asia and Indices: EUR/USD 1.3234 1.3260 0.11 % USD/CHF 0.9060 0.9077 0.11 % GBP/USD 1.6212 1.6241 -0.07 % USD/JPY 79.64 79.95 ...

(Reuters) - The euro weakened against the dollar on Monday and was on track for its worst month since December, pressured by nagging euro zone stresses as German retail sales were softer than expected and Spain slipped into recession. Investors were also wary of buying euros before weekend elections in France and Greece and a European Central Bank (ECB) meeting later in the week that could knock sentiment in the single currency. "There is clear risk aversion in the market," said Boris Schlossberg, director of FX research at GFT in Jersey City, New Jersey, citing data showing Spain's slide into recession and the weaker-than-expected German data. "In short, the news from Europe continues to point to further structural stress in the system." The euro failed to gain traction versus the ...

(Reuters) - Spain's government met regional officials on Wednesday to agree ways to cut state healthcare, an attack on a treasured welfare system that will fuel anger among a population weary of EU-enforced austerity to tackle a ballooning deficit. The conservative government has warned Spaniards they would have to start paying more for prescriptions, part of the welfare system that has provided state-financed health and education since the country's transition to democracy began in the 1970s. Although protests against cuts have been mostly peaceful and polls show that many Spaniards are resigned to reining in costs to fight the debt crisis, violent flashes during a recent national general strike may suggest patience is wearing thin. "It's time we end the culture of everything for free," ...

Forex Morning Briefing : Spanish yields make fresh highs What’s new: Asia: Asian Equities follow their US counterparts; mostly into negative territory China: Announces a widening of the USDCNY trading band EZ: European officials rallying support for more IMF emergency funds FOREX: EUR/USD slips briefly below 1.30 Spain: 10-yr yields at levels last seen in Nov’11 Rates in Asia and Indices: EURUSD: 1.2995 – 1.3075. USDCHF: 0.9198 – 0.9251. GBPUSD: 1.5819 - 1.5861. EURJPY: 108.02 – 108.41. USDJPY: 80.45– 80.99. DowJones: 12’849.59 -1.05% NASDAQ: 3'011.33 -1.45% S & P 500: 1'370.26 -1.25% Nikkei: 9’470.64 -1.74% Shanghai: 2'356.01 -0.13% Gold: $ 1'647.50 Crude Oil: $ 102.09 Comments: Asian equities continued to sell off following on last Friday’s US close. Overall renewed EZ debt ...

(Reuters) - Spain's banks are fast joining the ranks of the most unloved in Europe just as many need to raise capital urgently, deserted by investors who believe the country is on the brink of a recession that many lenders will not survive. The government has ruled out more state aid for a sector that comprises a motley mix of international lenders and heavily indebted local savings banks. That leaves two options: raising private capital or turning to the EU for bailout funds. Prospects for a private sector solution are poor. Nothing on the horizon looks likely to persuade foreign fund managers to invest, such is the fear of the banks' growing bad loans, their holdings of shaky sovereign debt and the worsening economy. Already battered by a property market crash that began four years ...

(Reuters) - Gold traded broadly steady on Wednesday, as a boost from a modestly stronger euro against the dollar partly offset slow consumer demand and an erosion in holdings of the metal in exchange-traded products. Holdings of gold in the world's largest ETPs fell by more than 100,000 ounces, following outflows from most of the major funds, marking the biggest one-day decline in three months, reflecting some of the investor shift away from bullion. Spot gold was quoted up 0.1 percent on the day at $1,650.90 an ounce by 1130 GMT. The price has fallen by nearly 3 percent so far this month, driven lower by the growing confidence among investors to buy assets that are more exposed to the global growth cycle such as equities or high-yielding currencies. "The risk is that this weak ...

Morning Briefing : FED speeches main focus this week What's new: Forex: Euro edges to 5-month high against yen, dollar steady after sharp losses on Friday Global Markets: Asian shares rise on optimism on US economy Untied States: Core CPI y/y eases to 2.2% in February United States: Michigan sentiment index slips to 74.3 versus 75.6 United States: Fed speeches by Dudley today, Bernanke later in the week are main focus this week Forex rates in Asia and Indices: EUR/USD: 1.3152 – 1.3187 USD/CHF: 0.9151 – 0.9172 GBP/USD: 1.5828 – 1.5851 USD/JPY: 83.57 – 83.04 EUR/CHF: 1.2062 – 1.2069 EUR/JPY: 109.25 – 110.15 DowJones: 13'232.62 -0.15% NASDAQ: 3'055.26 -0.04% S & P 500: 1'404.17 +0.11% Nikkei: 10’141.99 +0.12% Shanghai: 2’410.18 +0.23% Gold: $ 1’658.80 Crude Oil: $ 106.95 Comments: The yen ...