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
- Slow-Moving Yet Unrelenting Hawaii Lava Now Only Inches Away From Pahoa Homes
- 2014 MLB World Series Game 6: Kansas City Royals 10, San Francisco Giants 0 [PHOTOS]
- San Francisco Giants Beat Kansas City Royals, 3-2 In Game 7, Wins 2014 MLB World Series [PHOTOS]
- Cavaliers, LeBron James Flop In First Game Back In Cleveland; New York Knicks, Melo Pull Off Road Upset, 95-90 [PHOTOS]
Join the Conversation
- NATO: Russia's Been Conducting Too Many Military Flights Over Europe
- Moto X 2014 vs. Motorola DROID Turbo - Specifications, Features And Price Showdown
- Dismantling Of Fukushima Reactor 1 Faces Delays, US Judge Gives Sailor Go Signal To Push Through Lawsuit Against TEPCO Over Radiation
- Samsung Galaxy Note Edge To Be Available Through T-Mobile In The US
- Five Extreme Drop Tests On BlackBerry Passport Reveals Its Endurance [Watch Video]
- Updated iOS 8 Pangu Untethered Jailbreak Now Fully Works with Cydia: Key Fixes & Mods to Expect
- Ex-Ohio Trooper Pleads Guilty To Issuing Sex as Penalty To Women Motorists