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HISTORICAL DETAILS
% Change
1 Wk 2.24
1 Month 2.01%
3 Months -2.13%
6 Months 5.79%
1 Year 12.12%
52 WEEK
High 1.4940
Low 1.2588
BLOOMBERG MEDIAN FORECASTS
Q2 2011 1.45
Q3 2011 1.44
Q4 2011 1.42
Q1 2012 1.42
DAILY DETAIL
After trading in a narrow range overnight, Asian traders came in and immediately looked to sell EUR/USD, with the pair dropping to 1.4358 before finding good buying support and moving to test 1.4437. It seems that some of the enthusiasm surrounding the new EU Greek bailout has receded, with Greek ten-year bonds halting a four-day decline after a sell-out from investors, pushing up yields 11 basis points. Italian and Spanish yields also moved higher, up twenty-six basis points each, with the latter pushing back above 6%. Not only is there a growing view that the new bailout will not end contagion, but there are suggestions that the Greek bailout plan is facing stiff opposition in the Slovak parliament; if it were to materialise, it could add downside pressure to the pair. The interesting move of the day came around 12pm (Melbourne time), where EUR/USD traded through 1.44. This set off stops in the market, with some suggesting that central banks had also been involved in the move, as disappointment from President Obama’s remarks set in. Interestingly, we saw EUR/USD break the May downtrend at 1.4440, so a close above that level would be very positive. Chris Weston, Australia
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