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Daily Forex Overview
Fri, Feb 12 2010, 08:56 GMT
The euro fell against the yen and dollar in Asia Friday due to disappointment over the lack of a specific rescue plan for Greece in the European Union’s statement of support for the fiscally troubled country.
The euro slipped to JPY122.50 as of 0450 GMT, from JPY122.79 in New York Thursday.
Meanwhile, the dollar fell to JPY89.60 at 0450 GMT, compared with JPY89.73 Thursday in New York. But the greenback’s move was limited due to caution before the release of U.S. retail sales data for January due at 1330 GMT. Overall sales are tipped to have risen 0.3% in January, compared with a 0.3% fall in the previous month, according to economists.
The euro was trading slightly lower against the dollar Friday on disappointment over the lack of a specific rescue package for Greece, with traders saying the currency is likely to remain under pressure until European leaders set out concrete measures.
The Pound early selling in Europe was reversed as stock markets rallied and EURGBP weakness supported the Pound. The rally saw topside resistance at USD1.5700 tested once again to finish on a stronger footing than recently.
The Australian dollar was little changed Friday against the U.S. dollar and weaker against the yen as market participants wait for clarity from European policymakers on support plans for Greece. Bond prices were also mostly steady.
Market participants are still concerned over lingering debt problems in European nations such as Greece, Portugal and Spain. But after a prolonged fall in the past days, further sharp declines in the single currency are likely to be limited for now, dealers said.
EURGBP traders confirm support at stg0.8660, but add that stops are also noted on a break below. Rate currently trades back around stg0.8688, off pressured lows of stg0.8675.
Pound gets shoved up to USD1.5724 as traders report strong selling in the euro-sterling cross, UK clearer related. Cable currently trades around USD1.5706. Earlier reports had placed resistance in cable between USD1.5720/30, more toward USD1.5750.
EURUSD remains under pressure in early European trade, reports of decent demand interest well catered for as rate breaks under the Asian base at USD1.3653 to extend lows to USD1.3645 (50% USD1.3595/1.3695). Rate currently trades around USD1.3649. A break of USD1.3645 may allow for further slippage toward USD1.3635/30 ahead of USD1.3620. Move seen pressured as model funds offload euro-sterling.
European stocks are expected to open higher Friday, taking their lead from positive U.S. and Asian sessions, despite disappointment about the lack of detail in the assistance plan for Greece.