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
Bearish
GBP/USD
Mixed
USD/JPY
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
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The $JPY may resume a five-year rise against the New Zealand Dollar if prices make good on a Head-and-Shoulders pattern, pushing NZD/JPY toward 70.00. Get your market update from @ddubrovskyFX here: https://t.co/DXPkAjLoLp https://t.co/nyi5fDamr8
  • RT @RaoulGMI: Thanks Fitwit! Lots of great, smart ideas of playing the downgrades of BBB. The collective hive mind is truly incredible and…
  • transmissibility is increasing — news flow hasn’t been kind over the weekend — should be an interesting globex open #CoronavirusOutbreak https://t.co/UZYoZOQZ7V
  • The #Euro may be preparing to turn lower against the Japanese Yen, resuming a two-year downtrend and setting the stage for a decent below the 111.00 figure. Get your market update from @IlyaSpivak here: https://t.co/jtjJ1H2eRi https://t.co/epncUWJTSo
  • The $JPY has faded into 2020 as market risk appetite has held up and hit demand for haven assets. USD/JPY now challenges a key medium-term downtrend, but hasn’t topped it yet. Get your market update from @DavidCottleFX here:https://t.co/4X6vgCgkB7 https://t.co/bLWABxibOo
  • My pleasure! https://t.co/R7ArKNjCNO
  • The range in USD/CAD broke with aggression this week as CAD sellers pushed the currency after the Bank of Canada rate decision. Get your $USDCAD technical analysis from @JStanleyFX here: https://t.co/8oHoLLqvtR https://t.co/8ZXx6GbKAn
  • The $USD may fall against the Swedish Krona and Norwegian Krone if commentary from officials at the Davos forum uplift market mood and pressure haven-linked currencies. Get your market update from @ZabelinDimitri here: https://t.co/CPmNJSgHXY https://t.co/RdM0cbyfSf
  • The $AUD is pressuring four-month trend support against its US counterpart as sellers fight to reassert the dominant, long-term downtrend. Get your market update from @IlyaSpivak here:https://t.co/Bup64Arva9 https://t.co/CpraRXneTJ
  • The British Pound may fall as #Brexit commences, but will the Bank of England cut rates? The US Dollar could rise if the Fed spooks markets with plans to unwind repo operations $GBPUSD #BoE #GBP #Sterling - https://www.dailyfx.com/forex/fundamental/forecast/weekly/gbp/2020/01/26/British-Pound-May-Yet-Fall-on-Brexit-BoE-and-Fed-Are-Risks.html?CHID=9&QPID=917702 https://t.co/v39NsmOCwa
Euro Weakens as Greece’s Fiscal Crisis Fails to Calm Concern, British Pound Extends Friday’s Southern Journey

Euro Weakens as Greece’s Fiscal Crisis Fails to Calm Concern, British Pound Extends Friday’s Southern Journey

2010-05-03 10:07:00
Michael Wright, Currency Analyst
Share:

Talking Points
•    Japanese Yen: Weakens Further Against Higher Yielding Currencies
•    Pound: Maintains Range Ahead of Thursday’s Election
•    Euro: Losses Ground Against the Board  
•    U.S. Dollar: Personal Income & Spending, Manufacturing on Tap

Euro Weakens as Greece’s Fiscal Crisis Fails to Calm Concern, British Pound Extends Friday’s Southern Journey 


Greece accepted the bailout from the IMF and the EU worth $146 billion in order avert default and prevent the countries debt crisis from spreading through the rest of the bloc, but failed to calm the markets as investors speculate that bailout will be unsuccessful to stem the crisis from spreading to nations such as Spain, Portugal and Ireland.  Furthermore, the European Central Bank decided to suspend collateral rules on banks depositing Greek bonds “until further notice.”

At the same time, European Central Bank Executive Board member, Lorenzo Bini announced that inefficiencies delayed the Greek rescue plan, and went onto say that the European crisis should help the EU to equip itself with “more efficient institutions and procedures.” Nevertheless, the economic docket showed that Europe’s manufacturing industry expanded at the fastest pace in almost four years, with the final reading for April rising to 57.6 from 57.6 the reading prior, and exceeding economists’ expectations of 57.5. As ECB President Trichet expects to see an uneven recovery this year, the Governing Council is widely expected to hold a loose policy stance going into the second-half of 2010 as it aims to stem the risks for the economies operating under the single-currency, but the central bank may look to normalize policy further later this year as it maintains its one and only mandate to ensure price stability.

The British pound extended the previous day’s decline to reach an overnight low of 1.5211, and looks to test the 50-day SMA (1.5208) for support. The GBP/USD may continue its southern journey ahead of Thursday’s election as market participants see a risk for a hung U.K. Parliament subsequent to Former British finance minister Nigel Lawson stating that “the prospect of a hung parliament is already priced into the markets” on Friday.  Looking ahead, investors are weighing in a 3% chance that the Bank of England will increase their key overnight lending rate 25 basis points at its rate decision meeting on May 10th, while forecasting rates to jump 52.7 basis points over the next 12 months, according to the Credit Suisse gauge of rate hike expectations.

The greenback strengthened against most of its major counterparts, while the Swiss Franc lost ground across the board following the rise in risk aversion, and the U.S. dollar is likely to face increased volatility going into the North American trade as the world’s largest economy is expected to show that personal spending and income advanced 0.6% and 0.3% respectively in March. At the same time, ISM manufacturing is forecasted to climb to 60.0 in April from 59.6 the previous month, while construction spending is surveyed to retreat 0.3% in March, extending the previous month’s decline.

Do You Expect the EUR/USD to Maintain Its Current Range Over the Following Month? Join us in the Forum

Related Articles: 

Forex Weekly Trading Forecast – 05.03.10


To discuss this report contact Michael Wright, Currency Analyst: instructor@dailyfx.com

mb05.03
 

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

DISCLOSURES

News & Analysis at your fingertips.