Forex Focus is brought to you by IG Markets - Forex Trading
HISTORICAL DETAILS
% Change
1 Wk 0.82
1 Month -1.06%
3 Months -2.07%
6 Months 5.83%
1 Year 10.71%
52 WEEK
High 1.4940
Low 1.2588
BLOOMBERG MEDIAN FORECASTS
Q2 2011 1.45
Q3 2011 1.43
Q4 2011 1.42
Q1 2012 1.42
DAILY DETAIL
Optimisms seems to be sweeping through EUR/USD and the crosses, following reports of a deal being struck between French and German leaders ahead of tonight’s key EU meeting in Brussels. Markets are finding resolve in the fact that European officials are actually singing from the same song sheet for the first time in a while. Certainly part of the reason the euro has struggled recently is the divide we have been hearing from EU officials on how best to deal with Greece, and what a second round bailout should look like. The Financial Times has speculated that the new plan could involve a bond swap and EUR71 billion in bailout funds from global lenders, as well as a EUR50 billion tax on European banks, the proceeds of which will be used to buy back 20% of Greece’s EUR350 billion of outstanding debt. If this speculated plan comes to fruition, it could prove decisive, and give the markets something to finally cheer about. Interestingly, EUR/USD rallied to 1.4274 and EUR/CHF to 1.1743, as traders priced in optimism around tonight’s meeting. While invariably a comprehensive package would be positive for risk, we remain cautious until the finer details are made aware. Given the move higher in German bund yields, EUR/USD, EUR/CHF, European banking stocks, plus buying in sovereign bonds, expectations are elevated and as always in a situation like this, the devil is in the detail. Key resistance comes in at 1.4301 (the 50- to 100- day moving average); a close above here would be positive. Chris Weston, Australia
No comments:
Post a Comment