Closer To Parity As

Dukascopy Fundamental Analysis EUR Investors battered European stocks, dumped the bonds of Spain and Italy, and bid the euro down against the dollar Monday after the collapse of weekend coalition talks in Greece edged that country closer to an exit from the euro zone. USD Retail sales in the U.S. rose in April at the slowest pace of the year, showing unseasonably mild weather and pre-Easter shopping may have pulled consumers to stores the prior month. GBP Governor Mervyn King looks set to leave the door open to more support for the struggling economy when he presents the Bank of England's new economic outlook on Wednesday, which is likely to show a tricky mix of lower growth and higher inflation ahead. CHF Swiss stocks lost ground on Monday on concern Greece will exit the Eurozone. ...

Forex Morning Briefing : Greece retains focus; Aussie continues to weaken What’s new: Asia: Asian and US equities remain in negative territory Greece: Still unable to form a coalition government Spain: Government expected to unveil banks’ plans on Friday Forex: AUD/USD approaching parity, fresh 2012 lows Forex: JPY still attracting support as carry trades unwind Rates in Asia and Indices: EUR/USD 1.2965 1.3008 -0.15 % USD/CHF 0.9234 0.9263 -0.15 % GBP/USD 1.6129 1.6163 -0.13 % USD/JPY 79.72 79.94 0.10 % EUR/CHF 1.2010 1.2013 0.00 % EUR/JPY 103.4 103.94 0.27 % Dow Jones 12810.39 13000.73 -0.58 % Nasdaq 2587.53 ...

Fundamental Analysis EUR Spain's credit rating was lowered by Standard & Poor's for a second time in 2012 on enduring worries the nation will have to apply additional fiscal backing to lenders as the economy shrinks. S&P cut its long term grade for Spain from A to BBB+ adding a negative outlook. Country's short term rating was lowered from A-1 to A-2, S&P agency reported on Thursday. USD Crude oil price declined from almost 4-week high in New York trade after S&P ratings agency cut Spain's sovereign credit rating, boosting concerns that further recession in Europe may halt demand for crude. Oil to be delivered in June lost USD 0.61, reaching USD 103.94 a barrel. June Brent oil gave up USD 0.49 and traded at USD 119.43 a barrel. GBP Today the Great Britain Pound extended its gains ...

(Reuters) - The euro rose to a 10-week high against the dollar and its strongest since November versus the yen on Thursday after better-than-expected German data eased concerns about a bleak euro zone economic outlook. However, the conviction that Greece's latest bailout deal will not draw a line under it or the euro zone's debt crisis was expected to limit gains for the euro, meaning the currency may struggle to hold gains above $1.33. German business sentiment rose for a fourth month running in February, raising hopes that Europe's largest economy is improving and will avoid recession despite the problems facing indebted euro zone countries. But the single currency came off highs after the EU commission forecast the euro zone economy to contract by 0.3 percent in 2012. The euro was ...

Fundamental Analysis EUR "We expect the Greeks to rise to their responsibilities. This coming Monday, we will see whether Greece delivers or whether we will be forced to decide on another course of action, one that is not desired" - Steffen Kampeter, German Deputy Finance Minister The Euro rose against the US dollar and the Yen on Friday on hopes Greece was nearing a deal to secure a new rescue package despite rising worries about the ability of Greek leaders to rule the debt crisis. USD "We are seeing upward momentum in prices of food and other commodities that producers can’t pass along to consumers because consumers are still very fragile" - Lindsey Piegza, an economist at FTN Financial The Consumer Price Index (CPI) climbed 0.2% in January slightly below analyst median forecasts of ...

The Weekly Bottom Line HIGHLIGHTS OF THE WEEK United States Near-term fiscal risks to economic growth were mitigated this week after Congressional leaders struck a deal to extend temporary payroll tax cuts and unemployment insurance benefits through the end of 2012. But there is still a risk that fiscal austerity comes to bite in the not-too-distant future. Fiscal austerity in a modest growth environment will hurt the economic recovery, not help it. Greece is stark example of what crushing fiscal austerity can do to economic growth prospects. Closer to home, state and local government spending actions offer another example of how fiscal restraint can undermine growth. Policy clarity, especially as it concerns future fiscal restraint as outlined in the Budget Control Act, ...

Dukascopy Fundamental Analysis EUR Germany expects EU finance officials to reach an agreement over Greek bailout on meeting due February 20, German lawmakers announced today. Greece should increase its responsibilities in order be rescued otherwise Europe will have to take another way of action, the one that nobody really wants, Steffen Kampeter, German Deputy FM, emphasized. USD 2011’s most hated stocks have increased in value almost twice as fast as S&P 500’s growth for the period. This trend has burnt short sellers’. The 26 stocks from S&P500, which had attracted the most of short-sellers’ attention, have gained 18% during the last year. The index itself has only gained 8% in the same period. GBP UK retail sales, released today by National Statistics, have positively surprised ...

Fundamental Analysis EUR "... we doubt that the euro zone will be able to avoid further contraction" - Howard Archer, chief economist for IHS Global Insight Euro zone economy contracted less than expected in the last quarter of 2011 as France and Germany helped mitigate the recession. Gross domestic product fell 0.3 per cent, said the European Statistical Office. USD "The housing market is moving toward more sustainable growth" - Barry Rutenberg, chairman of the National Association of Home Builder U.S. industrial output stagnated in January, after rising a revised 1 per cent in December, the Ministry of Economy, Trade and Industry reported on Wednesday. GBP "The U.K. labor-market data continue to paint a bit of a mixed picture, but the key point is that unemployment is still rising" ...

Fundamental Analysis EUR "... we doubt that the euro zone will be able to avoid further contraction" - Howard Archer, chief economist for IHS Global Insight Euro zone economy contracted less than expected in the last quarter of 2011 as France and Germany helped mitigate the recession. Gross domestic product fell 0.3 per cent, said the European Statistical Office. USD "The housing market is moving toward more sustainable growth" - Barry Rutenberg, chairman of the National Association of Home Builder U.S. industrial output stagnated in January, after rising a revised 1 per cent in December, the Ministry of Economy, Trade and Industry reported on Wednesday. GBP "The U.K. labor-market data continue to paint a bit of a mixed picture, but the key point is that unemployment is still rising" ...