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Forex News –Eurogroup fail to conclude Greek aid deal

Posted on November 21, 2012 at 8:06 am GMT

Optimism that a deal would have been made on Greece at the Eurogroup meeting on Monday quickly evaporated. Markets were disappointed to hear that Greece’s international lenders failed for the second week running to agree how to get the country’s debt down to a sustainable level and will have a third go at resolving their most intractable problem in six days’ time. A disagreement between the International Monetary Fund and the European Central Bank means that emergency aid cannot be [..]

Asian Session – Euro slides on no Greek aid deal

Posted on November 21, 2012 at 6:55 am GMT

The euro weakened in the Asian trading session after markets were disappointed that European finance ministers failed to agree on a debt-reduction package for Greece. Euro snapped a two-day gain versus the dollar and tumbled 0.5 percent as risk appetite faded when the Eurogroup meeting ended without an agreement between international lenders to unleash the net tranche of financial aid to Greece. Further talks have been scheduled for November 26. EURUSD opened in Asia at $1.2816 and dropped to a [..]

US Session – Dollar buoyed by strong US housing data

Posted on November 20, 2012 at 10:28 pm GMT

Better than forecast October housing starts in the United States buoyed risk sentiment in the North American trading session and gave the greenback some underpinning. The US Department of Commerce reported housing starts climbed to their highest rate in more than four years in October. The data followed robust reports on Monday on existing-home sales and home builder sentiment. Dollar surged against the yen after the US data, extending gains from the Europe session to hit a new seven-month high. [..]

European Session – Euro rallying on hopes of Greek aid deal

Posted on November 20, 2012 at 1:38 pm GMT

The main news of the day so far was France’s downgrade by Moody’s to Aa1 from AAA, with focus shifting to the Eurogroup meeting later. The initial negative reaction by markets from the downgrade quickly wore off as focus turns to the next risk event which is the meeting of euro zone finance ministers later today to discuss the next disbursement of aid to Greece. Euro recovered from the sharp dip after the Moody’s downgrade and steadied during the European [..]

BOJ keeps policy unchanged

Posted on November 20, 2012 at 11:17 am GMT

The Bank of Japan ended a two-day policy meeting today, announcing that it refrained from loosening policy further, after having done so in September and October. The central bank kept interest rates between zero and 0.1 percent and did not expand asset purchasing program, leaving at 66 trillion yen. Also the credit-lending facility was unchanged at 25 trillion yen. The BOJ is expected to take expansionary policy easing measures at its next meeting which will take place after Japan’s December [..]

Moody’s slashes France AAA rating

Posted on November 20, 2012 at 10:45 am GMT

France lost its coveted triple-A rating on Monday after Moody’s Ratings agency announced it cut the country’s bond rating by one notch from Aaa to Aa1. A negative outlook was also maintained. Moody’s cited concerns on the country’s fiscal outlook and a worsening growth outlook. “France’s fiscal outlook is uncertain as a result of its deteriorating economic prospects, both in the short term due to subdued domestic and external demand” and “structural rigidities” in the longer term, Moody’s said in [..]

Asian Session – Euro falls after Moody’s downgrades France

Posted on November 20, 2012 at 6:43 am GMT

The euro tumbled on news that France lost its triple-A credit rating. Moody’s downgraded France’s government bond rating by one notch to AA1 from AAA and retained a negative outlook. This was a blow to the single currency which had rallied to its highest level in two weeks on Monday, lifted by optimism that Greece will receive more funding. EURUSD opened in Asia at $1.2812 and dropped to $1.2764 on the Moody’s announcement before being rebid to $1.2810. The upcoming [..]

Commodities – Crude oil jumps on Mid-East tensions

Posted on November 19, 2012 at 9:02 pm GMT

Crude oil prices jumped around 3 percent on Monday, rallying to the highest price since mid-October due to worries of supply shortage as violence escalates in the Middle East escalated. The Israeli-Palestinian tensions began on Wednesday last week and have grown to a full blown conflict. Israel bombed dozens of targets in the Gaza Strip on Monday and said that while it was prepared to step up its offensive by sending in troops, it preferred a diplomatic solution that would [..]

US Session – EURUSD hits 2-week high

Posted on November 19, 2012 at 8:47 pm GMT

The euro and other risk currencies extended a strong rally against the dollar in the US session on Monday as risk appetite was up on optimism for a deal to be reached to avert the so-called fiscal cliff. The Asian and European sessions had began the rally and the US markets played catch up. Risk sentiment was further boosted after US housing sales unexpectedly rose in October while home-builder sentiment rose to its highest in more than six years. This [..]

European Session – High yielding currencies rally on risk sentiment

Posted on November 19, 2012 at 1:17 pm GMT

Risk was back on Monday on optimism that the US fiscal cliff can be avoided. This eased investor concerns that the world’s largest economy could be pushed into recession. The S&P500 index gained as well as equity markets while the dollar fell against higher-yielding currencies. US President Obama said after a meeting with congressional leaders on Friday that he was “confident” that an agreement would be reached over the nation’s budget. This is dollar negative as investors cut back positions [..]

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