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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
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
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Bearish
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
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Gold: -0.27% Silver: -0.58% Oil - US Crude: -1.80% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/KJU1AHNEDG
  • GBP/JPY IG Client Sentiment: Our data shows traders are now net-short GBP/JPY for the first time since Jun 26, 2020 when GBP/JPY traded near 132.21. A contrarian view of crowd sentiment points to GBP/JPY strength. https://www.dailyfx.com/sentiment https://t.co/aHn90OrXVn
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.33% 🇪🇺EUR: -0.22% 🇬🇧GBP: -0.26% 🇳🇿NZD: -0.29% 🇨🇦CAD: -0.32% 🇦🇺AUD: -0.53% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/TJLRwMkful
  • Heads Up:🇸🇪 Monetary Policy Meeting Minutes due at 07:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-07-10
  • RT @DanielGMoss: $USDCAD remains confined by channel resistance although strengthening RSI suggests a breakout may be on the cards. $CADJP…
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/xknMZhmJ5C
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.64% France 40: -0.83% US 500: -0.90% FTSE 100: -0.91% Wall Street: -1.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/xgu0QJ9H7c
  • 🇫🇷 Industrial Production MoM (MAY) Actual: 19.6 Expected: 15.1% Previous: -20.1% https://www.dailyfx.com/economic-calendar#2020-07-10
  • Heads Up:🇫🇷 Industrial Production MoM (MAY) due at 06:45 GMT (15min) Expected: 15.1% Previous: -20.1% https://www.dailyfx.com/economic-calendar#2020-07-10
  • A macro forex trading guide exploring how to trade the Euro vs the Swedish Krona and Norwegian Krone through the prism of the Core-Perimeter model. Get your market update from @ZabelinDimitri here:https://t.co/n6zwlZJmGO https://t.co/jbUscJ9E0u
Australian Dollar, Euro Tank as Greek Deal Falls Apart

Australian Dollar, Euro Tank as Greek Deal Falls Apart

2012-02-10 14:10:00
Christopher Vecchio, CFA, Senior Strategist
Share:

Fundamental Headlines

- Banks Not Off Hook with $25B Mortgage Agreement – Bloomberg

- Fed Plays Wall Street Favorites in Secret Bond Deals – Bloomberg

- Iran Sanctions Already Hitting Oil Trade Flows – Reuters

- Romney Matches Obama in Stance on Outside Groups – WSJ

- Unrest Flares on Streets of Athens – WSJ

European Session Summary

Higher yielding currencies and risk-correlated assets took a plunge in the overnight, as data out of Asia and political developments in the Euro-zone weighed on investor sentiment. Chinese trade data was the first catalyst in the overnight, with trade flows significantly deteriorating on the import side. This reinforces the notion that the Chinese economy will struggle in the coming months without substantial domestic demand; and with inflation picking back up as per recently released figures, the People’s Bank of China may not be able to help the economy.

In Greece, riots have turned worse, as expected, given the increasingly hostile demands the European Troika has levied upon the Greek government and her citizens. With political infighting now occurring in the ruling coalition, European finance ministers have thus far held back the bailout package necessary for Greece to receive in order to prevent a default on March 20, when their next bond redemption is due. George Karatzaferis, the leader of Greece’s Laos part, said he couldn’t support the measures; this has awoken the bears, which have dragged equity markets down to their worst day in 2012 thus far. The negotiations remain in the balance, however, with the Greek parliament due to vote on Sunday.

Taking a look at credit markets, the developments out of Greece have weighed heavily on periphery bonds, with the Italian and Spanish 10-year notes pared back their recent gains, with the yields slightly rising back to 5.550 percent and 5.238 percent, respectively. Greek bonds were hammered, as expected, and German bunds strengthened as the flight to safety took root. It is worth nothing that the European Central Bank was active in the secondary markets soaking up Portuguese bonds: the 10-year bond yield fell by 91-basis points to 11.509 percent.

EUR/USD 5-min Chart: February 10, 2012

Australian_Dollar_Euro_Tank_as_Greek_Deal_Falls_Apart_body_x0000_i1028.png, Australian Dollar, Euro Tank as Greek Deal Falls Apart

Charts created using Marketscope– Prepared by Christopher Vecchio

Overall, Friday has had the makings of a classic risk-off day, with the lower yielding currencies outperforming the higher yielding currencies. The Japanese Yen was the top performer, gaining 0.06 percent against the U.S. Dollar; the Australian Dollar was the worst performer, losing 0.95 percent. It is worth noting that the Swiss Franc has outpaced the Euro thus far, and the EUR/CHF has fallen back below 1.2100, at the time this report was written. I do caution that this move lower, for now, appears to be corrective in nature, and that if the Greek government agrees to and passes the Troika’s proposed measures, there is tremendous potential for a snap back rally, either today or for a gap open on Sunday.

24-Hour Price Action

Australian_Dollar_Euro_Tank_as_Greek_Deal_Falls_Apart_body_Picture_7.png, Australian Dollar, Euro Tank as Greek Deal Falls ApartAustralian_Dollar_Euro_Tank_as_Greek_Deal_Falls_Apart_body_Picture_1.png, Australian Dollar, Euro Tank as Greek Deal Falls Apart

Key Levels: 14:05 GMT

Australian_Dollar_Euro_Tank_as_Greek_Deal_Falls_Apart_body_Picture_4.png, Australian Dollar, Euro Tank as Greek Deal Falls Apart

Thus far, on Friday, the Dow Jones FXCM Dollar Index is higher, trading at 9782.79, at the time this report was written, after opening at 9732.59. The index has traded mostly higher, with the high at 9798.34 and the low at 9730.41.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, send an e-mail with subject line "Distribution List" to cvecchio@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.