EU Morning Report - EUR is collapsing

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By NikolasX | November 21, 2012 8:28 PM EST

Easy Forex

 

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!

 

. Pivot Preference1 Sentiment2
. EURUSD 1.2760 LONG @ 1.2760 49% of deals buy EUR
. USDJPY 81.05 LONG @ 81.05 36% of deals buy USD
. GBPUSD 1.5890 LONG @ 1.5890 51% of deals buy GBP
. AUDUSD 1.0395 SHORT @ 1.0381 36% of deals buy AUD
. GOLD 1717 LONG @ 1720 49% of deals buy GOLD
. OIL 84.90 LONG @ 84.90 50% of deals buy OIL
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
.
Currency Time (GMT) Event Forecast
. GBP 09:30 BoE MPC lending rate votes (hike-unchanged-cut) 0-9-0
. USD 13:30 Initial Jobless Claims 410 k
. USD 14:55 University of Michigan Consumer Sentiment 84.5

 

Movers Shakers
GER 30
GER 30 (DAX) carried on its rebound off Friday’s low, when it temporarily broke below the 7000 support. The German equities index rose to 7170, a 2.51% appreciation so far this week. It looks a bit soft early in the EU session today; however minor retracement should be expected.

 

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