The Euro gave up all gains made on Friday after markets became jittery again on news that Euro zone finance ministers postponed a final decision on extending the next tranche of Greek bailout funds to early July. They said Greece will first have to pass new laws on fiscal reforms and start privatization of government agencies. EURUSD edged lower in Asian trading to drop to 1.4221.
Sterling was affected by risk-off sentiment and was down against the Dollar. Sterling is expected to remain weak after a recent spate of weak economic data provided evidence that the UK economy has slumped and interest rates will remain at record lows for now. GBPUSD reached lows of 1.6120.
Japan posted a 853.7 billion Yen trade deficit in May, the biggest in nearly two and a half years as the impact of the March 11 earthquake and tsunami continues to inhibit a recovery in the nation’s economy.This figure was much worse than predicted at 711.1 billion Yen and down from the April 463.7 billion.
The Aussie dollar dipped lower against the USD reacting to the news that Euro zone finance ministers delayed a decision on the next tranche of Greek aid making investors cautious. Meanwhile, the AUD was also weighed down by lower commodities, such as oil and especially gold. The Australian Dollar is a commodity-linked currency. AUDUSD lost 70 pips, edging down to 1.0546.
Gold was initially supported by the Greek debt crisis woes in the beginning of the Asian trading session but then edged from $1,540.84 to $1,535.83. Gold is expected to rally more in anticipation of the Federal Reserve meeting on Wednesday. Their interest rate decision could put pressure on the dollar.
Note: Daylight Saving Time is in effect for GMT