EU Morning Report - Risky currencies sell-off
By NikolasX | November 28, 2012 8:28 PM EST
The euro (EUR) is weakening against most of its major counterparts, as market participants focus on the US fiscal cliff scenario. This comes one day after the eurogroup meeting reached an agreement on Greece. The eurozone finance ministers consented after 13 hours of negotiations on Monday to lower the interest rates on bilateral loans to the debt-ridden nation, while interest payments due to the European Financial Stability Fund (EFSF) will be postponed by 10 years. Additionally, the maturity of the loans increased to 30 from 15 years. In the US, the fiscal cliff situation has not seen any developments and as days go by with no breakthrough, investors will start looking for alternative risk haven assets.
§ The Canadian (CAD) and Australian dollar (AUD) are weakening versus most of its counterparts. The same is true for the British pound (GBP) following the release of the 3rd quarter Gross Domestic Product (GDP) in line with expectations at 1.0%.
§ OIL has now found support at 87.00 US dollars (USD) a barrel and a breakthrough below that level could pave the way for lower lows.
§ GOLD (XAU) dropped from 1749.15 to 1741.43 yesterday and recorded a lower low this morning at 1737.43. There is a major support level at 1735.80 for the precious metal.
Stay in tune throughout the day with foreign exchange bullets!
|.||EURUSD||1.2955||SHORT @ 1.2945||39% of deals buy EUR|
|.||USDJPY||82.25||SHORT @ 82.25||52% of deals buy USD|
|.||GBPUSD||1.6030||SHORT @ 1.6020||38% of deals buy GBP|
|.||AUDUSD||1.0454||LONG @ 1.0454||28% of deals buy AUD|
|.||GOLD||1735||LONG @ 1735||68% of deals buy GOLD|
|.||OIL||88.50||SHORT @ 88.50||78% of deals buy OIL|
|.||EUR||09:00||M3 Money Supply Annual Growth in October||2.8%|
|.||USD||15:00||New Home Sales in December||390k|
|.||OIL||15:30||Crude Oil Inventories||0.4mil|
The US dollar (USD) rebounded off the support found at 6.5900 against the Swedish krone (SEK) yesterday, breaking through the resistance areas observed at 6.6400 and 6.6800. The pair now lies above 6.7000 and while retracements should be expected, as long as the 6.68 support remains intact there should be more potential for upside.
Most Popular Slideshows
- Kate Middleton Suffocated in Kensington Palace, Queen Elizabeth Reported War With The Duchess [PHOTOS]
- Brad Pitt Still in Love with Ex-Wife Jennifer Aniston, Staying with Angelina Jolie for Sake of Kids, Claims Brad's Psychic
- British Style Icon Kate Middleton Fashion Talk With Camilla Parker-Bowles Daughter-In-Law [PHOTOS]
- Transfer News: Manchester United's Possible Transfer Options For This Season
Join the Conversation
- James Foley Beheading Video Has Play-Acting Portions – Video Experts Say
- Apple iPhone 6 Release Date, iPhone 6C or 6L Anticipation: Three Things Should Matter To New Phone Shoppers
- Upcoming Sony Xperia Z3 With Dual-SIM Support Gets Approved In China; Full Specifications Revealed; Amber-Coloured Xperia Z3 Tipped
- More Nexus 8/Nexus 9 Release Confirmed with More Leaks and Out of Stock Nexus 7 and 10
- James Foley: Release of Beheading Video by ISIS Meant to Attract More Recruits to Join the Cause – Intelligence
- 2015 Ford Mustang: Right-Hand Drive Pony Car To Be Available In Australia Next Year
- James Foley: ISIS Demanded Multimillion Ransom, US Refused To Pay---Reports