Euro Hits New Low

EU’s common currency crashed into a 21-month low point against the Swiss franc.

Market figures showed 1.2052 francs per euro on the EBS FX trading platform following news reports about the Ukraine.

It was previously off 0.12 percent at 1.2054 francs.

Against the Japanese yen, the euro dropped to a two-week trough of 136.41 yen per euro. It was last recorded at 136.51 and down only by 0.4 percent. The euro traded at $1.3169, losing by 0.2 percent.

The Japanese yen and Swiss franc went up in currency markets worldwide. Meanwhile, the US dollar was down 0.2 percent against the two currencies.

Selling of the euro declined earlier due to the increasing speculation that European policy makers will accelerate monetary slackening to drive economic growth in the region.

However, selling accelerated yesterday after Ukraine alleged that Russia was sending troops across its border. Tensions remained high.

Currency strategists based in Europe said that if the situation gets worse, the clear loser is the euro currency. Germany, which is the biggest economy in the euro zone, is one of Russia’s major trading partners.

Asian Stocks Experience Decline

asian stocksThe standard stock index of Asia is on its way towards a drop, the first since April with indications basically unchanged.

Telecommunication shares moved forward while material shares deteriorated.

The Asia Pacific Index (MSCI) lost 0.1 percent to 148.20 in Tokyo before markets begin trading in Hong Kong and China. The gauge is primed for a 0.4 percent fall and 0.2 percent weekly decrease. Standard & Poor’s 500 Index moved back below 2,000 amid fighting in Ukraine and unsatisfactory retail earnings. These overshadowed data which showed economy swelled more than projections during the last quarter.

Nonetheless, investment strategists forecasted that Asian stocks will perform well in the short-term despite resistance levels. Market sentiment will not really be affected by basic or geopolitical factors.

Topic Index in Japan hovered between gains and losses as the Yen improved for two days and traded at 103.72 against the US dollar.

Australian S&P as well as ASX 200 Index hardly moved while South Korea’s Index lost a bit at 0.4 percent. New Zealand’s Index also fell 0.3 percent.

Futures on the Hang Seng Index in Hong Kong fell 0.4 percent.

Asian Stocks Drop while Aussie Bonds Rise

Asian stocks plunged earlier than data on profits of Chinese industrial firms.

Meanwhile, bonds from Australia and New Zealand led gains in US Treasuries after declining rates in the Euro Zone spurred demand for greater yields. Gold also went up.

The Asia Pacific Index decreased 0.2 percent in Tokyo and waned again this week as the TOPIX Index of Japan diminished 0.6 percent. Also, futures of Standard & Poor’s 500 hardly moved after US measures gauge was unable to stretch gains higher than the 2,000 level. Earnings from 10 year bonds in Australia and New Zealand slumped three basis points as Treasury rates were limited to a 15-month low. Gold and silver went up for the third consecutive day while wheat futures moved back 0.4 percent.

Bond income from Europe (Germany to Spain) touched record lows in the middle of speculations that the ECB is set to heighten stimulus. Germany is expected to give details on inflation today while the US will inform markets regarding economic growth.

TOPIX also collapsed this week while Nikkei 225 Stock Average plunged 0.6 percent as the Japanese currency advanced 0.2 percent against the US dollar. The Yen was up 0.1 percent to 103.76 per dollar after gains yesterday cracked a week of decline. It was the longest decline for August.

The European inflation report is due tomorrow. The next schedule of review of interest rates by policy makers is on September 4.

Gold Value Decreased

gold pricesGold went down yesterday due to the U.S. release of good consumer confidence figures but it stayed in a key level to watch. Watch for key levels to the drawback, while am alteration play would set the testing price of 1287.1$ and bringing it later to1282.7$ if it needs further correction.

The 1282.7$ support for Gold is about to be retested. Presently, the price is overdone given the random picture of the generator but with the support zone of 1282.7 – 1280.8 and the newly bullish impetus seen in area making it stronger to require from the zone support to grasp and possibly be the beginning point for a higher ascent. In case of an escalation, the first objective will be found at 1287.1$ while the next one in case of upheld move will be seen at 1292.3$. If the in case the rallying scenario would not be assured by the market, the two key supports will be 1280.8$ and 1278.5$ and lower than these levels would bring on a strong bearish move to the cluster support zone of 1260$. Today, the neutral stance is maintained with a slightly bullish tone.