Concerns About Greece’s

Fundamental Analysis EUR "Inevitably there is going to be an element of bargain hunting as investors look to top up their holdings on the basis of slightly lower prices" - Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers European stocks edged higher on Monday on China’s pledge to boost growth. USD "Equity prices have gotten oversold" - Mark Luschini, chief investment strategist for Janney Montgomery Scott LLC U.S. equity market edged higher on Monday on China stimulus hopes and after German and French officials said they would cooperate to keep Greece in the monetary union. GBP "Obviously, as the euro depreciates, the U.K. gets slightly more expensive" - Miles Shipside, Rightmove commercial director U.K. national house prices stagnated in March, announced the ...

US dollar index is starting out another week stronger, thanks in large part to difficulties plaguing the eurozone. While the Facebook IPO last week distracted Forex traders and investors from the crisis in the eurozone for a short period of time, focus is back on Europe, and what’s happening (or not happening). Concerns about the eurozone continue to make the US dollar attractive as a safe haven. Even as concerns about Greece’s exit from the eurozone grow, the US dollar remains backed by the world’s most stable taxpayer base. On top of that, there is an expectation that other central banks — especially the ECB and the BOE — are more likely to ease monetary policies before the Federal Reserve does. That said, there is still a chance that the Fed, led by Ben Bernanke, will engage in ...

The euro (EUR) edged higher to 1.2812 rebounding from a four-month low at 1.2641 against the US dollar. The single currency tumbled on Friday on concerns over Greece’s political uncertainty as well as growing instability in the Spanish banking sector. European leaders of G8 met during the weekend to discuss steps needed to fight Europe’s debt crisis and reaffirmed the importance that Greece remains in the eurozone. G8 leaders also focused on ways to stimulate eurozone growth but no detailed plans on how to resolve the problems were announced. But the single currency remains under pressure as investors are worried about a messy Greek default and exit from the euro ahead of a repeat election in June 17. The US dollar (USD) stumbles against a basket of currencies as sentiment in the market ...

Greek And Spanish Woes Weigh On The Euro The euro (EUR) plummeted against the dollar sliding to a four-month low at 1.2655 from 1.2748 as risk aversion dominates the markets. World equities tumbled as investors fear that Greece may leave the euro after the second election in the country in June. Poor economic data from the US and concerns about the growing instability among Spanish banks further weighed on the single currency. Credit rating agency Moody’s downgraded 16 Spanish banks while shares in Bankia, the state-rescued lender plunged on news that clients have withdrawn 1 billion in the past week. Fitch downgraded Greece’s rating from BI to CCC, the lowest possible grade for a country not in default, citing the heightened risk that the country may leave the eurozone. The US dollar ( ...

Dukascopy Fundamental Analysis EUR Mario Draghi, the ECB President, insisted on Greece to stay in the Euro bloc during his public speech on Wednesday regarding the possibility of Greece withdrawal from the Eurozone. Nevertheless, according to him, the ECB will stick to its anti-inflation mandate. The ECB President's comments came after Irish and Belgian central banks reported that Greek exit would not be disastrous for the Eurozone. USD Jobless claims in the U.S. didn't live up to the expectations that it will decrease by 5K and remained unchanged, at 370K level, in the week from 6th to 12th of May. Amount of people on rolling unemployment claims increased by around 18K while the number of people on prolonged payments decreased by around 45K. 31 out of 52 states or territory's reported ...

Dukascopy Fundamental Analysis EUR Stoxx Europe 600 index have dropped for third consecutive day and reached the lowest level since the start of this year as specialists speculate that elections in Greece could take place as early as 10 of June. The index lost 0.5% of its value by noon in London and around 10% from its peak this year in mid-March. USD Facebook increases the share offering by 25% to 421.2M shares to collect near $16B. At the offering's price of $34-$38 per share Facebook is rushing towards the largest technology IPO in the history. Production of utilities, mines and factory's in the U.S. surpassed expected 0.6% level and increased by 1.1% in April. GBP The number of unemployed people for January-March decreased to 2.63 million, 45,000 down on the quarter, the Office for ...

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. ...

Fundamental News Today’s highlights: · French GDP (QoQ) (FRA, 6:30 GMT) · German GDP (QoQ) (GER, 7:00 GMT) · French Non-Farm Payrolls (QoQ) (FRA, 7:45 GMT) · Trade Balance (GB, 9:30 GMT) · ZEW Economic Sentiment (EUR, 10:00 GMT) · German ZEW Economic Sentiment (GER, 10:00 GMT) · GDP (QoQ) (EUR, 10:00 GMT) · Core CPI (YoY) (U.S, 13:30 GMT) · Retail Sales (MoM) U.S, 13:30 GMT) · NY Empire State Manufacturing Index (U.S, 13:30 GMT) · TIC Net Long-Term Transactions (U.S., 14:00 GMT) Foreign direct investment in China fell for a sixth month in April, as faltering global growth and renewed turmoil in financial markets dented company spending in Asia’s biggest economy. Inbound investment ...

What’s new: Forex: RBA opened the door for an additional rate-cut in the near future, AUD higher Global Markets: Asian stocks down on Greece Exit Fears Italy: Moody’s downgrades 26 banks, including UniCredit and Intesa SanPaolo Commodities: Gold hits a 5-month low at $1’548 Comment: Overnight, the Reserve Bank of Australia released its Monetary Policy Meeting Minutes which showed the possibility of an additional 50 basis point Official Cash Rate cut based on weaker economic growth, high inflation data and global uncertainties. Back in Europe, the euro trimmed away around 15 pips against dollar following Moody’s decision to downgrade 26 Italian banks due to deteriorating conditions in the country’s economy, in its financial sector, and a limited access to market financing. Growing ...