The single currency suffered losses against the US dollar today. The EURO dropped by more than 1% against the Dollar which was the biggest one day drop down observed in the currency since November. The main cause for this drop down were concerns of Greece being forced to restructure its debt. During the session the EURO reached as low as 1.4157 and during the last few hours it appears to be demonstrating some corrective behavior from its continuous drop that started from the mid hours of the Asian session. A spike high at 1.4349 was observed following announcements the US credit rating could be downgraded by FITCH. The EURUSD is currently traded at 1.4234.
During today’s US session the sterling recorded some losses against the American greenback ending around 10 pips lower than the 1.6273 opening level. At around 14:00 a spike high value of 1.6334 was recorded following the announcement that USA could lose its AAA rating by the FITCH credit ratings agency that caused fears of the USD dropping and hence the initial market response was to hold short positions against the USD. However this response was only temporary as the USD losses were more than covered within the next hour where a low of 1.6165 was recorded from which the GBP has been recovering from.
The Swiss Franc recorded some gains against the US dollar but were not substantial. Just like all the other major currencies against the USD the Swiss Franc made an astonishing 50 pips gain following the possible downgrading of USA by FITCH that were later capped within the next hour. Nevertheless some downwards movement later allowed the Franc to make some gains as the session ended 8 pips lowers than what it had opened.
Unlike all the other major currencies that made big gains, even for a while, following the possible downgrading of the USA the Canadian Dollar failed to do so. At the point of announcement the CAD made only 25 pips while at 16:00GMT the USD was as high as 0.9721. Over the last few hours the USD appears to be demonstrating a downwards movement.
Gold continued to rise today reaching a new all time high at 1497.54. The continues unrests and uncertainties from the Eurozone debt situation, restructuring of Greek debt as well as the massive USA government economic deficit have triggered the precious metal’s safe haven nature. Gold is currently traded at 1495.91.