The euro (EUR) commenced the week with noticeable buying pressure following the weekend break. News from Greece induced – a much needed – optimism in the markets, with opinion polls showing pro-bailout parties to be able to form a coalition government in the upcoming elections. However, an interview by Christine Laggard, the IMF Managing Director, released on Friday and titled “It’s payback time: don’t expect sympathy” caused havoc and investors will have to estimate its impact on Greeks attitude towards the euro and the eurozone. Versus the US dollar the single currency opened higher at 1.2532 from 1.2516 on Friday’s close. The 1.25 figure appears to be a significant level of support, tested once on Friday.
The US dollar (USD) appears weak as markets open ahead of no economic data release expected today, in observance of the Memorial Day bank holiday. The ADP employment report on Thursday and Non Farm Payrolls release on Friday will be the points of attention for market participants for this week.
The Australian dollar (AUD) set off the weak on the right foot against the US dollar, with a strong rise following days of seemingly uninterrupted drop. Retails Sales on Wednesday and Building Approvals on Thursday will provide the catalysts needed for the pair to move towards new ground.
Oil opened at 90.96 dollars a barrel from 90.75. Gold (XAU) opened at 1573.97 US dollars an ounce from 1556.34. Against the euro, gold rose to 1256.65 from 1244.16 an ounce. Silver (XAG) opened at 28.6130 dollars an ounce from 28.4975. Stay in tune throughout the day with foreign exchange bulltes!
|.||EURUSD||1.2545||LONG @ 1.2545||54% of deals buy EUR|
|.||USDJPY||79.70||SHORT @ 79.70||81% of deals buy USD|
|.||GBPUSD||1.5660||LONG @ 1.5660||72% of deals buy GBP|
|.||AUDUSD||0.9800||LONG @ 0.9800||62% of deals buy AUD|
|.||GOLD||1565||LONG @ 1565||63% of deals buy GOLD|
|.||OIL||90.50||LONG @ 90.50||73% of deals buy OIL|
The euro (EUR) produced a spectacular u-turn against the New Zealand dollar (NZD) over the past week, after it failed to break thought the 1.69800 resistance area. After recording a high at 1.69283, it dived to 1.65353. This was 393 pips, a weekly drop - in percentage terms - of 2.32%. It will be interesting to see whether the pair will continue this fall or rebound to higher highs.
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