Currency Strategist At Oanda

The euro dropped broadly on Monday after elections in Greece and France cast doubt on politicians' commitment to austerity plans aimed at tackling the euro zone debt crisis. Renewed fears about the stability of the euro zone made the common currency pierce the key psychological level of $1.30 on its way to hitting a three-month low against the dollar in the overnight session. Technical support helped pare losses during New York trade, though the single currency looked likely to remain under pressure in days ahead. The biggest blow to the common currency was the Greek election, in which the two main parties that support the nation's international bailout failed to secure a parliamentary majority. This threw into question the future of the program and potentially the country's membership ...

The dollar firmed slightly against the euro on Tuesday after a drop in the previous session on dovish comments from Federal Reserve Chairman Ben Bernanke, but those gains were vulnerable to consumer confidence data due later in the day. The greenback's advance came amid choppy, range-bound trading as investors parsed Bernanke's caution on Monday that the economy needs to grow more quickly to bring the unemployment rate down lower. Bernanke's comments fanned hopes the Fed could ease policy further, perhaps through another round of quantitative easing. Until markets have more clarity on the Fed's plans, though, trading could stay constrained, said Dean Popplewell, chief currency strategist at OANDA. "Until the words 'QE' are actually uttered by the Fed, you play the ranges, and we're ...

The euro rallied on Wednesday amid renewed optimism that Greece will reach a deal with its creditors while the yen hit a three-month high versus the dollar for a third day, increasing speculation that Japan may step in to halt its rise. Greek Finance Minister Evangelos Venizelos said talks with private creditors on a bond swap deal that is key to the country avoiding an unruly default were "one formal step away". The euro's fortunes have waxed and waned in recent days as investors focused on each new headline regarding Greece and how that headline prompted a rise or fall in optimism. The euro was also helped by a euro zone manufacturing purchasing managers' survey (PMI) which was revised up, with German factories posting growth, and by decent demand at auctions of German and Portuguese ...

(Reuters) - The euro sank to its lowest in 16 months against the dollar on Wednesday, weighed down by persistent talk of an imminent cut to France's triple-A rating and a warning from Fitch about a collapse of the single currency if the European Central Bank does not step up its bond purchases. Renewed speculation about a French downgrade reminded investors that the three-year-old euro zone debt crisis is not solely confined to the region's peripheral economies, but has affected Europe's core nations as well. However, a senior French source told Reuters on Wednesday that France has not been informed of any forthcoming downgrade to its credit rating, and that eased selling of the euro a bit. Adding to the euro's bearish tone were comments from Fitch ratings agency's head of sovereign ...

The euro held steady against the U.S. dollar on Wednesday as investors held out hopes European leaders will make progress on solving the debt crisis at a key summit this week, but any further gains should be limited. France and Germany will lay out a plan to amend the EU treaty to anchor stricter budget discipline in the euro area, aiming to restore market trust and prevent the sovereign debt crisis spiraling out of control. A senior German official, however, dampened some market optimism, saying Berlin is increasingly pessimistic about the chances of a deal because some governments don't seem to grasp the gravity of the situation. Expectations the European Central Bank, which is widely expected to cut interest rates by 25 basis points on Thursday, may step up support for banks and ...

U.S. stocks were down in choppy trading on Wednesday, falling with the euro, as hopes deflated that an EU summit this week will generate a comprehensive deal to tackle the region's debt crisis. With razor-thin volumes exaggerating market moves, Wall Street's S&P 500 index fell by up to 1 percent before recovering more than half of the dip within minutes. The drop came after two straight days of gains in U.S. stocks on the notion the European Union summit beginning Friday will result in a more workable solution for the debt crisis. French officials had said earlier this week that French and German leaders will not leave the summit until a "powerful" deal was reached. But a German government official discounted such hopes on Wednesday, saying Berlin was getting increasingly pessimistic ...

(Reuters) - The euro dropped against the dollar on Wednesday, erasing gains as comments from a senior German official dampened some early optimism that European leaders will take decisive steps to contain the region's debt crisis at an upcoming summit. Berlin is increasingly pessimistic about the chances of a deal to solve the debt crisis at the summit because some governments do not seem to grasp the gravity of the situation, a German government official said, speaking on condition of anonymity. The euro fell to a session low of $1.3349, triggering reported stop-loss orders below $1.3400, and was last trading at $1.3360, down 0.3 percent on the day. Dean Popplewell, chief currency strategist at OANDA in Toronto, said the cautious comments from Germany weighed on risk sentiment. " ...

(Reuters) - The euro slid from a six-week high against the dollar on Monday as uncertainty on euro zone agreement on a comprehensive plan to tackle the region's debt crisis prompted investors to reduce bullish bets. The euro had gained in early trade after European leaders neared a deal over the weekend on bank recapitalization, and euro zone officials said France and Germany were close to agreement on how to use the European Financial Stability Facility to stave off bond market contagion. Serious divisions still linger, however, over the size of the haircut private holders of Greek bonds will have to accept, with a final decision delayed until a second summit on Wednesday. The dollar fell against the yen, trading close to a record low hit on Friday and leaving traders on alert for ...

The euro fell to a 6-1/2 month low vs the dollar on Friday as investor risk aversion increased after reports an ECB Executive Board Member will step down because of a conflict over the central bank's controversial bond-buying. The euro had already fallen to six-month lows versus the dollar and the yen as investors continued to trade on the ECB's lower growth forecast and the central bank's shift to a neutral bias. But news of such division within the European Central Bank that Juergen Stark, chief economist, would resign, prompted investors to immediately shun risk. The ECB confirmed Stark was leaving but said he would stay until a successor was appointed. "There is increased uncertainty surrounding the ECB and the euro zone with another major hawk off the governing council," said ...