We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Update on #Cryptocurrencies (24H Change) #BITCOIN -3.59% #BITCOINCASH -7.44% #ETHEREUM -4.03% #RIPPLE -4.96% #LITECOIN -8.09%
  • RT @lisaabramowicz1: Today has seen the biggest one-day drop in 10-year Treasury yields since 2016, with the level now just basis points aw…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.82%, while traders in USD/CAD are at opposite extremes with 70.18%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/bULTh7GRop
  • The price of #gold climbs to a fresh monthly high ($1681) as the #coronavirus drags on the global supply chain, and the precious metal may exhibit a bullish behavior over the remainder of the month. Get your $XAUUSD market update from @DavidJSong here: https://t.co/h02KVH9bWE https://t.co/cgq8X9gGZ3
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Silver: 1.90% Gold: 1.88% Oil - US Crude: -4.97% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/oZ1KxQywNr
  • Wall Street IG Client Sentiment: Our data shows traders are now net-long Wall Street for the first time since Oct 03, 2019 when Wall Street traded near 26,200.30. A contrarian view of crowd sentiment points to Wall Street weakness. https://www.dailyfx.com/sentiment https://t.co/XRLFJCPPtr
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.97% 🇪🇺EUR: 0.13% 🇨🇭CHF: 0.06% 🇦🇺AUD: -0.20% 🇬🇧GBP: -0.27% 🇨🇦CAD: -0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/EI1p6OLSRi
  • For the $SPX, this week's opening gap is the worst seen since August 1981 https://t.co/fVM4fHIGcB
  • As far as I can tell, this is the sharpest gap lower to start a week for the benchmark Dow since August 1998 https://t.co/YwPwGbGrL3
  • One of the more desired conditions that traders can look for are short-term reversals in price. Candlesticks themselves can help us see some of these potential reversals, with the Pin Bar. Find out how you can incorporate Pin Bars into your strategy here: https://t.co/0RFcb0Rpja https://t.co/vj3XW5aKEv
Euro Firms Despite Continued Sell-off of Commodity Currencies

Euro Firms Despite Continued Sell-off of Commodity Currencies

2011-10-04 13:36:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

Fundamental Headlines

EU Flags Bigger Losses for Greece Bondholders – Bloomberg

Lacker Says Fed’s Twist Won’t Spur U.S. Jobs – Bloomberg

China Warns of Trade War if U.S. Bill Passes – Reuters

S&P 500 Set to Enter a Bear Market – Reuters

Greece: Finances Can Withstand Delay – WSJ

European Session Summary

The beginning of October hasn’t treated markets kindly, as was expected. With last week marking the end of the third quarter and thus books being marked to market, realized losses are coming to home to roost. There was been a noticeable shift in market sentiment over the past few months: the second quarter was about trying to prevent a Greek default; the third quarter was about trying to delay a Greek default; now the fourth quarter will be about how the markets will absorb a Greek default. The second day of trading in the new quarter has not looked promising thus far, with further chunks of value wiped off Asian and European equity markets in the overnight.

In another dramatic downturn in the Greek debt saga, more bad news came down the pipeline for investors: European officials are hinting that private bondholders may be encumbered with bigger losses on Greek debt. The question of who would take the lion’s share of write-downs – bondholders or European governments – has been a sticking point for the core Euro-zone countries. Today’s development that bondholders may be forced to take a bigger hit suggests that the deal for a second aid package to Greece may be unraveling.

EUR/JPY 10-minute Chart: October 3 to 4, 2011

Euro_Firms_Despite_Continued_Sell-off_of_Commodity_Currencies_body_x0000_i1028.png, Euro Firms Despite Continued Sell-off of Commodity Currencies

Charts created using Strategy Trader– Prepared by Christopher Vecchio

Despite all of this, the Euro has held up nicely today ahead of the North American session open, as the only major currency to gain against the U.S. Dollar. However, before its rebound, the Euro touched the lowest level in a decade against the Japanese Yen, while similarly hitting an eight-month low against the Greenback. The shift to risk-aversion was in full-swing, with the commodity currency block losing the most ground on Tuesday. A victim of deteriorating rate expectations, the Australian Dollar was the worst performing major currency against the U.S. Dollar ahead of North American trade, as a lack of hawkish commentary out of the Reserve Bank of Australia sunk investment sentiment.

Thus far, on Tuesday, the Dow Jones FXCM Dollar Index is higher, trading at 10108.01, at the time this report was written, after opening at 10068.54. The index has traded mostly higher, with the high at 10126.36 and the low at 10066.73.

24-Hour Price Action

Euro_Firms_Despite_Continued_Sell-off_of_Commodity_Currencies_body_Picture_1.png, Euro Firms Despite Continued Sell-off of Commodity CurrenciesEuro_Firms_Despite_Continued_Sell-off_of_Commodity_Currencies_body_Picture_7.png, Euro Firms Despite Continued Sell-off of Commodity Currencies

Key Levels: 13:05 GMT

Euro_Firms_Despite_Continued_Sell-off_of_Commodity_Currencies_body_Picture_4.png, Euro Firms Despite Continued Sell-off of Commodity Currencies

Written by Christopher Vecchio, Currency Analyst

To contact the author of this report, please send inquiries to: cvecchio@dailyfx.com

Follow Christopher Vecchio on Twitter: @CVecchioFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.