Euro-Dollar (EURUSD) was unable to regain 1.2600 after the sharp drop in the currency this morning. EUR-USD gapped from NY closing levels of 1.2700 to 1.2560 after the G20 failed to offer any concrete solutions, last week's poor Euro-Zone GDP data and in the wake of weekend comments by ECB Stark and Bini Smaghi of more weakness in the Euro-Zone economies ahead.
EUR-USD fell to lows of 1.2513 before the bounce in the Nikkei helped EUR-USD recover to highs of 1.2597 but EUR-USD was unable to rise above that level, drifting back to 1.2563 this afternoon. Offers are eyed at 1.2600 and 1.2640 with bids at 1.2500 and 1.2450 reported.
The market widely believes that the ECB is behind the curve on cutting rates, and this remains a factor weighing on the EUR. Even the IMF head Strauss-Kahn today said that the ECB has further scope interest rates.
UK Shadow Chancellor Osborne is arresting his warnings of a GBP collapse, afterwards he declared on the weekend that Brown's borrowing run's a accident on the sterling, and that the bill could accept a able "collapse." Prime Minister Brown hit aback on the comment, advertence that he abjure the accessory allocution from the opposition. Subsequently, Osborne has dedicated his comments, adage he should acquaint the accuracy about the ballooning debt. The comments accept had little absolute appulse on admirable however, which followed the broader trend set by AUD and EUR today.
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