USD slaughters euro and commodities

The euro (EUR) recorded losses against most of its major counterparts as the news from Greece heightened risk aversion. The final round of talks on forming a coalition government yesterday produced no breakthrough. The debt-ridden nation will now proceed with new elections in June. As the ongoing drama unfolds, fear and uncertainty concerning the eurozone future of Greece take over. There were reports that on Monday, 700 million EUR where withdrawn from Greek banks. Against the US dollar, the single currency dived to 1.2734 – a 5-month low - from 1.2830. European Central Bank (ECB) President Draghi is due to deliver a speech on “Monetary Policy in Unconventional Times”, a rather interest topic that is expected to capture the attention of investors worldwide.

The US dollar (USD) appeared strong versus a basket of currencies as Retail Sales grew at a slower pace and Business Inventories decreased in April. The seemingly constant threat of Greek leaving the eurozone and its potential domino impact, heightened risk aversion and favored risk haven buying of the greenback for yet another day. Against the Canadian dollar (CAD), the US dollar rose to 1.0070 from 1.0022. Versus the Swiss franc (CHF), the greenback surged to 0.9431 from 0.9360. Market participants are expected to tune in on the Federal Open Market Committee (FOMC) Minutes release due at 18:00 GMT, later today.

Oil prices dropped to 92.97 – a level last seen in December 2011 - from 93.93 dollars a barrel. Gold (XAU) plunged to 1543.00 – a fresh 5-month low - from 1558.34 US dollars an ounce. Against the euro, gold dived to 1213.08 from 1214.04 euro an ounce. Silver (XAG) moved down to a new low at 27.6497 from 28.2059 dollars an ounce. Stay in tune throughout the day with!

                       ¹data generated by Trading Central™,²data obtained from easy-forex Inside Viewer™

³at the time of writing

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