EU Morning Report - EUR is collapsing

The euro (EUR) is falling across the board against most of its major counterparts, as the eurogroup meeting failed to arrive at an agreement on Greece. This comes one day after Moody’s lowered France’s rating by a single notch from AAA to AA1. The eurogroup is now scheduled to meet again on Monday. The Australian dollar (AUD) is weakening for a second day as the minutes from the latest meeting of the Reserve Bank of Australia (RBA) were revealed, showing that the policy board continue to favour easing. Market participants should closely monitor the release of the Bank of England (BoE) Monetary Policy Committee (MPC) minutes from their latest meeting.

§ The euro (EUR) recorded a weekly low at1.2736 versus the US dollar (USD) overnight following the news on the failure to reach a deal on Greece.

§ OIL is plummeting ahead of the Crude Oil Inventories release later today after it had been rising on the back of the tensions in the Middle East.

§ Gold (XAU) and Silver (XAG) dropped against the US dollar (USD) as the greenback strengthened following commentary by Federal Reserve Chairman Bernanke where he openly pressed politicians to resolve the “fiscal cliff” crisis.

Stay in tune throughout the day with foreign exchange bullets!