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news that clients have withdrawn 1 billion in the past week.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 (USD) strengthened against a basket of
currencies yesterday sentiment in the market was further hurt by weaker than expected
economic figures from the US. Against the safe haven Japanese yen (JPY) the greenback dropped to a three-month low at 79.13
from 80.37 after the US Philadelphia Fed Manufacturing Index surprised the
markets by showing a disappointing figure of -5.8 while 10 was expected. The
negative reading signals an economic contraction adding further on the Federal
Reserve’s concerns about the pace of the US economic recovery. Japan’s Finance
Minister Jun Azumi said that the Bank of Japan is ready to intervene in order
to stop the yen from rising further.
The British Pound (GBP) continues
to decline against the dollar falling to 1.5732 from 1.5920 following the Bank
of England inflation report released on Wednesday. The report left the
possibility open for another round of quantitative easing while emphasizing on
the increasing risk the UK economy faces by the eurozone deepening debt crisis.
Oil fell to 91.60 dollars a barrel from 93.86.
Gold (XAU) edged higher to 1579.78 dollars an ounce from 1542.55 and
against the euro itedged higher to 1239.69
euro an ounce from 1210.86. Silver (XAG)
advanced to 28.30 dollars an ounce from 27.40. Stay in tune throughout the day with!
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OUTLOOK ◘
|
|
Pivot
|
Preference1
|
Sentiment2
|
|
|
EURUSD
|
1.2730
|
SHORT @ 1.2730
|
§ 65% of deals buy EUR
|
|
|
USDJPY
|
79.70
|
SHORT @ 79.70
|
§ 78% of deals buy USD
|
|
|
GBPUSD
|
1.5835
|
SHORT @ 1.5835
|
§ 70% of deals buy GBP
|
|
|
AUDUSD
|
0.9895
|
SHORT @ 0.9895
|
§ 80% of deals buy AUD
|
|
|
GOLD
|
1558
|
LONG @ 1558
|
§ 68% of deals buy GOLD
|
|
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OIL
|
92.90
|
SHORT @ 92.90
|
§ 84% of deals buy OIL
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1data generated by Trading Central™,2data obtained from easy-forex Inside Viewer™
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CALENDAR◘
|
Currency
|
Time (GMT)
|
Event
|
Forecast
|
|
|
CAD
|
12:30
|
Consumer
Price Index
|
0.3%
|
|
EQUITIES ◘
|
EUROPE
|
|
US
|
|
ASIA3
|
|
|
|
FTSE 100
|
-1.24%
|
▼
|
S&P 500
|
-1.51%
|
▼
|
NIKKEI
|
-2.99%
|
▼
|
|
|
DAX
|
-1.18%
|
▼
|
DJIA
|
-1.24%
|
▼
|
HSI
|
-2.59%
|
▼
|
|
|
CAC
|
-1.20%
|
▼
|
NASDAQ
|
-2.10%
|
▼
|
CSI 300
|
-1.14%
|
▼
|
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