The single currency has reversed the predictions for limited losses against the greenback. The higher debt worries in the Euro zone’s peripherals and especially the rejection from the Portuguese parliament the Socrates austerity measures sank the EURUSD pair to a low of 1.4069. The concerns that the heavily indebted Portugal will soon seek for a bailout from the IMF and the EU weigh on the common currency, especially after the resignation of the country’s PM. Initially on the Asian trade the Euro unsuccessfully tried to depreciate some of the losses climbing at 23:00 GMT to a session high of 1.4113, but since then it lost some 44 pips to hit the four days low. Today investors will be focusing on the outcome of the EU Economic Summit which may support the Euro; furthermore there are some other important economic data due in the day, such as the German and the European PMI – Manufacturing. Currently the EURUSD pair is trading close to its four days trough at 1.4081.
The Sterling has plummeted sharply yesterday versus the US Dollar due to the disappointing (dovish) BoE minutes. However its downfall was stabilized due to the strong support level which lies at 1.6218. During the first half of the Asian session the British Pound appreciated by some 28 pips to hit a session high of 1.6266. However the gains were instant as the GBPUSD pair slipped to a 1.6231. The GBPUSD pair is now trading at 1.6239. Despite the general Sterling weakness the GBPJPY pair limited the losses as it gain some 26 pips to hit a session high of 131.68. The cross pair is now trading at 131.49.
The Aussie was rather sluggish today as it ranged between 1.0144 and 1.0111. The Australian Dollar holds strongly its gains from the previous days after the sharp decline the previous week on the back of the Japanese quake. Normally the high commodity prices will support the AU Dollar and the losses will be constraint. Moreover a key support level exists at 1.0063. The AUDUSD pair now is trading at 1.0115.
The session was profitable for the USDJPY and the intervention seems to work on the correct way. However investors are expecting a second round in the short term which will offer further strength to the Dollar. Upon the opening of the session the greenback gained some 21 pips to end to a session high of 81.04. Currently the Us Dollar is trading against the Japanese Yen at 80.99 in sight of the session high. The EURJPY pair was traded between a low of 113.91 and a high of 114.21, at the moment the cross pair is trading at 114.11 approaching its session high.
The gold after it spurred at the closing of the European session remained rather silent for the rest of the day. The precious metal remained steady among debt worries in the Euro zone and the unrest in the Middle East and North Africa. The safe haven metal is now trading at USD 1438.0 an ounce.