The U.S. dollar was the prime beneficiary when China’s central bank announced an increase in bank reserve requirements, since any slowdown in global economic growth tends to undermine the attractiveness of the higher yielding assets.
The euro is lower due to the ongoing uncertainties concerning the status of Greece’s budget deficit situation, along with a weaker than expected euro zone gross domestic product report. Gross domestic product in the euro zone was up only .1%, which compares to an estimate of a .3% increase.
The Australian dollar and the Canadian dollar fell on China’s bank reserve requirement news. Anything that slows the global recovery is likely to limit commodity price gains.
In the longer term, the “commodity currencies,” the Australian dollar and the Canadian dollar should be the strongest currencies, as the global economy continues to recover, and in spite of China tapping the breaks on their economy.
EUR/USD grew up to 1.3809 however, further it fell up to 1.3740. Traders note, that EUR rate are affected by the rumors connected with the financial support to Greece. First, there were conversations that Greek would get the aid, but further there was information that EU ministers of finance had not offered any financial aid.
GBP/USD fell at the European session up to 1.5616, which is 150 pips less than today’s maximum. Bank of England quarterly reports put pressure on the GBP rate.
EUR/USD at Asian session grew from 1.3620 to 1.3698. USD/JPY is stable within 89.13-89.53.
EUR/USD at the European session is within 1.3620-1.3710. Traders note, that EUR rate is corrected after the fall last week.
US Secretary of Treasury said today that EU representatives confirmed G8 that the Greek issue would be given special attention.
EUR/USD grew at the European session up to 1.4026. However, further it was corrected up to 1.3905.
Today, the European Commission approved the Greek plan to reduce the budget deficit.
EUR/USD rate is also affected by the decrease of GBP/USD rate as well as null index for retail sales in Europe.
GBP/USD after its increase up to 1.6066 fell up to 1.5917.
The traders are expecting the business activity indexes in the US, as well as changes in employment in the US.
EUR/USD grew at the European session up to 1.3917. The rate is adjusted after its fall last week. This night EUR/USD fell up to 1.3851, which is the minimum since July 8, 2009.
A member of the European Commission said that the Greek plans to reduce the budget deficit were ambitions, but achievable.
EUR is also supported by the growth of previous metals’ prices.
Traders are expecting the results of the meetings of European central banks, as well as the Mr. Walker from US President’s team speaking in the US Senate
EUR / USD – Early last week, pair moves up toward 1.42. However, the crisis makes Euro devastated Greece. Pair fell sharply through 1.39 at the close on Friday. This week, predicted pair will continue to fall. The next target is estimated in the range of support is 1.375. Levels are likely to provide very strong support, and when pierced, then 1.342 will be the next target. On the upper side, there was resistance at the level of 1.4 and 1.42. If pierced, then the resistance is 1.445 which is the last week will be the target, but this seems very little chance. (axe)
EUR/USD fluctuates within 1.3941-1.4049. EUR price is under pressure as the result of troubles in some European countries with the debt funding. Traders are also waiting for the results of the US Senate voting to approve Ben Bernanke at the post of US FRS. The approval can be a positive factor for USD rate.
GBP/USD grew up to 1.6273 which is almost 140 pips more than today’s minimum. Traders note, that the BP buys British pounds to pay its dividends.
EUR/USD grew during the European session up to 1.4193. However, it further declined up to 1.4120. The correction was made after the stock markets opened.
Today, traders monitor the stock market indexes after their significant decline at American session on Friday. Today the major real estate indexes to be published in the US reflecting the economic recovery process.
Greek minister of finance said the country was not going to withdraw from the European zone. He also said that the country would not need external aid for solving its financial troubles.