Common Currency Looks

(Reuters) - Brent crude held steady near $109 on Tuesday, awaiting the results of two meetings to tackle Europe's debt crisis and Iran's nuclear programme, which could determine the future of global oil demand and supply. EU leaders may introduce new measures to tackle the euro zone's worsening debt crisis during Wednesday's informal meeting to seek solutions to the Greek political crisis mired in conflict over debt and austerity policies. Major powers will also meet Iran on Wednesday to discuss its nuclear programme, but tensions with the West remain high as the U.S. Senate unanimously approved a package of new economic sanctions on Iran's oil sector on Monday. Brent crude edged up 7 cents to $108.88 a barrel by 0448 GMT, but is still about $20 down from March's high. U.S. crude for ...

Copper bounced on Friday, helped by investors balancing positions ahead of the weekend's G8 meeting, but was set to decline for a third week on concerns that deepening debt problems in the euro zone could drag on China's economy and erode metals demand. Three-month copper on the London Metal Exchange traded at $7,744.50 a metric ton (1.1023 tons) in official rings up 1.3 percent from Thursday's close of $7,649 a metric ton. However the metal, used in power and construction, has dropped by 10 percent since late April, trimming the year's gains to just 2 percent. "There is the combination of Europe and all that entails, and concerns about the extent of the slowdown in China weighing on prices," BNP Paribas metals strategist Stephen Briggs said "But our view is that China is going to ...

The euro fell to a four-month low against the dollar on Wednesday and risked more losses on the prospect of prolonged political instability in Greece that could result in the country exiting the euro. With Greece announcing fresh elections next month and investors concerned about the knock-on effects of a Greek euro exit for economies like Spain and Italy, investors fled the euro and sought the perceived safety of the dollar and the yen. The dollar rose to its highest in four months against a basket of currencies, while the euro also hit a three-month low versus the yen. The euro dropped to $1.2681 against the dollar on EBS trading platform, which left it on track to test the January low of $1.2624, below which would mark the euro's lowest level since August 2010. However, it recovered ...

What’s new: Forex: Euro, risk currencies tumble on worries over Greece Global Markets: Stock markets plummet on political turmoil in Greece Greece: Greece set for new elections as President fails to forge coalition Japan: BOJ may lower interest paid at cash held with central bank; USD/JPY United States: CPI as expected at 2.3% y/y, FOMC minutes due today United Kingdom: BoE Quarterly inflation report scheduled for 11:30 CET Forex rates in Asia and Indices: Low High Change EUR/USD 1.2683 1.2738 -0.26 % USD/CHF 0.943 0.9471 -0.26 % GBP/USD 1.5949 1.5999 -0.19 % USD/JPY 80.16 80.45 -0.28 % EUR/CHF 1.2010 1.20127 0.00 % EUR/JPY 101.91 102.38 -0.00 % Dow Jones ...

Fundamental Analysis EUR "Germany is holding up the rest of the euro zone”" - Nick Kounis, head of macroeconomic research at ABN Amro Germany helped the Eurozone avoid its second recession in three years. Overall gross domestic product stagnated in the first three months of 2012, compared to the previous quarter, Eurostat data showed on Tuesday. USD "There’s a lot of slack in the economy" - Scott Brown, chief economist at Raymond James & Associates Inc. Inflation in the U.S. stagnated in April, restrained by a decline in energy costs. The core consumer price index, which excludes food and energy costs, rose 0.2 per cent, showed Bureau of Labor Statistics data on Tuesday. GBP "March's UK trade figures showed a bit of an improvement, although the external sector still looks likely to ...

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. ...

The euro fell to a near four-month low on Monday as political turmoil gripped Greece, highlighting the risk the country may exit the euro zone, while worries about slowing Chinese and global growth drove down higher-yielding currencies. Safe-haven currencies including the dollar and the Japanese yen rose as coalition talks in Greece hit an impasse on Sunday, increasing the chance of another election. Euro zone industrial production unexpectedly fell in March, adding to signs the bloc is heading into recession and further fuelling bearish sentiment, while Spain's short-term debt costs rose at auction and its 10-year yields soared. The common currency fell to $1.2861 on trading platform EBS, its lowest level since January 23. It has lost 2.7 percent so far this month after losing 0.8 ...

Sunrise Market Commentary - Fixed Income: Core bonds higher at first, but gave back gains in US session - Fears about Greece and Spain continued to boost core bonds, but a rumours, later confirmed, that the EFSF would today disburse a tranche of the Greek bail-out loan triggered some correction and erased part of the German bond gains and almost all of the US ones. Today, the BoE decision on QE may affect overall bond markets. - Currencies: euro extends its trip South as speculation on Greek exit is growing - On Wednesday, trading on global markets was still dominated by negative headlines on Europe. This weighed on the euro. After all, the decline of EUR/USD developed in an orderly way even as several EMU policymakers pondered the option of a Greek exit. Today, the BoE holds ...

(Reuters) - The euro fell close to a recent three-month low on Wednesday and was set for further falls on worries that Greek political uncertainty and a French leadership change may undermine the euro zone's austerity measures. The euro remained under pressure after the leader of Greece's Left Coalition party said on Tuesday that the country's commitment to a European Union/International Monetary Fund rescue deal had become null and void. Greece's two main pro-bailout parties failed to win a majority in weekend elections, leaving questions over the country's ability to avert bankruptcy and stay in the euro. Added to instability in Greece, French President-elect Francois Hollande has advocated an approach to tackling the debt crisis centered more on growth, which may create tensions with ...