Posts Tagged: Euro

The European currency managed to improve its position against the dollar in the last six weeks after the extension of Greek’s debt and the falling of the borrowing costs for the euro zone countries. Analysts state that Euro is likely to gain more in yields on Spain and Italy’s bonds drop lower. The European currency increased with 0.2% to $1.3083, the highest level since the 22nd of October. Traders state that if the currency succeeds to break above the $1.3100 level, it can stop loss buy orders. The head of FX research at Commerzbank stated the following: “We have had a general upward trend in euro/dollar for quite a while and people are looking at news in the euro zone like the debt buyback by Greece.” Greece’s buyback exceeded the market expectations and improved the chances of cutting the debt and receiving other financial aid.

Although the dollar is considered a refuge in these times of financial Read more »

Euro strengthened its position at the strongest level this month against the dollar after the US lawmakers reached an agreement regarding the fiscal cliff, reducing demand for safe assets. The European currency gained more for the first time in four days versus the yen as Italian and Spanish bond rallied. This led to optimism regarding the crisis easing and the improvement of the financial situation of Europe. Krona, Sweden’s national currency was appreciated against all the 16 major counterparts after the economy developed more than the analysts’ predictions. Sweden’s currency rose for the second day against the dollar after GDP increased 0.5% in the 3rd quarter. The currency increased to as much as 0.4% to 6.6201 per dollar.

John Boehner, speaker of US Republican House stated that he had optimism regarding averting the budget crisis. Adam Myers, director of foreign- exchange market strategy at Credit Agricole SA (ACA) stated the following referring to Boehner’s declaration: “There’s a bit Read more »

The yen dropped to the lowest level in the last six months against the dollar. The prospects of the Japanese elections expected the next month will transfer power to the opposite party that pleads to an aggressive monetary improvement. The greenback managed to gain against 16 other currencies as a report stated that the cost of living increased the previous month at a slow pace. Japan’s currency began to destabilize its level to a two-week low against the euro. The GBP has dropped to a 10-week low level against the greenback, as shown in the UL retail sales.

Jane Foley, senior currency strategist at Rabobank International in London stated the following: “The leader of Japan’s opposition is coming down quite heavily, saying what he would like the Bank of Japan to do in terms of easing and that’s pressuring the yen. The U.K. retail sales tie in with a gloomy outlook for the U.K. economy and that Read more »

The rally between the euro and the dollar reached a two-month low level as the European Central Bank is ready to announce the interest-rate decision after Mario Draghi stated that the crisis has started to affect Germany. Euro was the single currency weakened versus all of the 16 counterparts after Market News International declared that the ECB is unwilling to purchase the government bonds after a decline in the lending costs. The yen improved its position due to the fact that investors sought assets among the re-elected president Obama is trying to prevent the fiscal cliff. Also, the British pound rose against the euro currency as the Bank of England restrained to elevate the asset-purchase program.

Euro dropped 0.3% to $1.2734 reaching the lowest level since the 7th of September. Lee Hardman, the currency strategist at the Bank of Tokyo declared that the following: Draghi’s comments may have encouraged speculation that the ECB may present a more dovish Read more »

The euro became loose near a two-month low versus the greenback on Tuesday and with an outlook clouded by the Parliament of Greece that voted the steps of austerity needed to improve the situation of the country. Traders stated that the market was in a standby mode regarding the US presidential elections on Tuesday. Opinion polls concerning the elections stated the fact that the challenge between Barack Obama and Mitt Romney is very close, but president Obama has a small advantage in various states. The euro currency eased with 0.1% to $1.2788 and remained to a level of $1.2767 set by the trading platform of EBS and reached the lowest level in the last two months.

The latest decline forced the euro out of the $1.2800/3200 trading level gained since the middle of September. The support has become around $1.2741, a level that represented approximately 38% reversal of the euro’s July to September rally. The Parliament of Read more »

Today, the euro managed to rise against the US dollar and against other important currencies after the Spain reports considered requesting a line of credit after the credit line from the bailout fund of Europe. The currency climbed to $1.2973 in Tokyo and up to $1.2953 in North America.

The European Council President Herman Van Rompuy has created a plan in order to improve the situation in the euro zone. Gabriele Steinhauser explains how to euro zone plan isn’t have and how it can put the neighboring on a serious edge. The Financial Times stated the fact that the country was prepared to make a formal request, but the announcement was delayed due to the fact that it could affect other euro-zone countries such as Italy.

Michael Turner, the currency strategist at RBC Capital Markets stated the fact that if the story is true and the timing is right, the euro currency can gain further support. Also, Stan Read more »

The Dollar Index achieved a one month high after the debt of Spain was cut off. The euro currency has a weak position against most of its counterparts before Italy has to sell bonds today among the deep economic crisis in Europe. The Australia’s dollar has strengthened its position after the country added workers since May. The yen has recorded a rise although the rest of its rivals have declined.

Europe has shared the currency at a low level of $1.2826 and wasn’t seen at this level since October 1. Was traded as $1.2837 and has decreased 0.3 % from yesterday. This analysis leads to the conclusion that the dollar has reached a higher level. The fiscal outlook in Spain can lead to a fall to a junk status of the currency.

The Dollar Index is used to pursue the dollar against the major currencies. Today, the DXY has reached a level of 80.205, a level Read more »

Just like the previous wee, this week will find itself under the influence of the Group of Twenty meeting, which has managed to break one of the market’s trends in order to establish another. The most important evolution of the market is related to the fact that the risk aversion caused by the downgrade of the credit rating of bank in Europe and in Spain did not manage to last for long, but has soon been replaced with a new wave of optimism caused by the optimism related to the results of the Group of Twenty meeting. This means that the trend broke as the volatile price action which has been visible in the p0revious weeks has now disappeared without warning.

This has led to the growth of higher-yielding assets, such as commodities, stocks and other risk-related assets. One of the great evolutions has been that of the Australian Dollar, which has posted gains as big as Read more »

The Euro is faced with difficulties due to the sovereign debt crisis, which tends to become worse in the European Union. Even though the Euro has had a positive week till the moment when Fitch Rating has announced the decision of downgrading Italy and Spain’s credit ratings, the end of the week has brought problems to the currency, making it fall against its major counterparts.

The end of the week has brought the Euro in the situation of deleting all the gains it managed to gain against its major counterparts. These losses are due to the decision taken by Fitch Rating, that of downgrading the credit rating for Italy and Spain, decision which has caused a new wave of concerns among traders, who have been thus reminded that the sovereign debt problem in Europe continues to be a very important problem. Fitch took the decision of downgrading Italy’s credit rating from AA- to A+ and Spain’s credit Read more »

The Euro has been shaken by numerous problems in the last month. The situation in the Eurozone becomes worse each day and the Euro has problems holding on to its counterparts. The beginning of this month has turned out to be just as bad for the Euro as the previous month has been. This is due to the sovereign debt crisis and especially to the situation in Greece. The week to come may be one of the most important ones in the evolution of the European currency as it is expected for the situation in Greece to come to an end at the end of the week, most likely a bad one. Concerns have grown even more after the moment yesterday when it has been announced that Greece has not been able to meet its deficit limit. The country is likely to face default in the immediate period and this could trigger the Euro down with it. The Read more »