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FOREX: Dollar and Yen Rise, Euro Falls Amid Renewed Greece Debt Fears
Written by article default Monday, 30 May 2011 09:24
Overnight Headlines
- Dollar, Yen Outperform as Greece Debt Fears Stoke Risk Aversion
- NZ Trade Surplus Widens to Record as Exports Rise Most in 5 Months
Critical Levels
|
CCY |
SUPPORT |
RESISTANCE |
|
EURUSD |
1.4206 |
1.4346 |
|
GBPUSD |
1.6419 |
1.6526 |
The Euro and the British Pound declined in overnight trade, down as much as 0.4 and 0.3 percent respectively against the US Dollar as the greenback capitalized on safety demand in a risk-averse start to the trading week (see below). We continue to look for EURUSD selling opportunities.
Asia Session: What Happened
|
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
|
22:45 |
NZD |
Trade Balance (NZ$) (APR) |
1113M |
600M |
578M (R+) |
|
22:45 |
NZD |
Exports (NZ$) (APR) |
4651M |
4300M |
4613M (R+) |
|
22:45 |
NZD |
Imports (NZ$) (APR) |
3538M |
3700M |
4035M (R-) |
|
22:45 |
NZD |
Balance - 12mo YTD (NZ$) (APR) |
1187M |
571M |
734M (R+) |
|
23:01 |
GBP |
Hometrack Housing Survey (MoM) (MAY) |
-0.1% |
- |
0.0% |
|
23:01 |
GBP |
Hometrack Housing Survey (YoY) (MAY) |
-3.7% |
- |
-3.3% |
|
1:00 |
AUD |
HIA New Home Sales (MoM) (APR) |
0.2% |
- |
4.3% |
|
1:30 |
AUD |
Company Operating Profit (QoQ) (1Q) |
-2.0% |
2.0% |
-1.7% (R+) |
|
1:30 |
AUD |
Inventories (1Q) |
0.4% |
0.1% |
0.8% (R+) |
|
5:05 |
JPY |
Small Business Confidence (MAY) |
37.8 |
- |
36.1 |
The US Dollar and Japanese Yen outperformed in overnight trade, rising as much as 0.3 and 0.2 percent respectively against their top counterparts, with currency markets taking on a risk-averse tone. The reemergence of Euro Zone debt fears seems to have been the catalyst behind traders’ dour mood after a story in Der Spiegel published over the weekend said Greece may have missed all of the fiscal goals set forth as conditions for receiving an EU/IMF bailout package. Tellingly, the Euro led the majors lower while the Greek CDS rate – a measure of the priced-in likelihood of default in the beleaguered country – rose 14bps to the highest in a week.
Related: NZ Trade Surplus Widens to Record, Improves Outlook on Productivity and Exports
Euro Session: What to Expect
|
GMT |
CCY |
EVENT |
EXP |
PREV |
IMPACT |
|
No Data |
With no economic data on the calendar while UK and US markets closed for holidays, a quiet session seems likely ahead. However, traders would be wise to be wary of knee-jerk price action – particularly given the troubling Euro Zone news over the weekend the subsequent risk-averse mood in Asia – as thin liquidity conditions threaten to amplify volatility. Indeed, stock index futures tracking key European exchanges are moving aggressively lower ahead of the opening bell, pointing to continued gains for the anti-risk US Dollar and Japanese Yen.
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