Home > All > Forex Market Review – Euro hovers at $1.30
Posted on April 16, 2012 by Trading Point Investment Research Desk at 1:07 pm GMT
Euro steadied against the dollar in the European trading session after sharply declining since Friday due to concerns over Spanish debt. Yields on 10-year Spanish government bonds rose above 6 percent for the first time since December. EURUSD briefly fell below the key 1.30 level and dipped to a two-month low of 1.2993 before bouncing back above 1.30. Going into the North American session, the pair rose as high as 1.3045 after some positive US economic data showing retail sales rose 0.8 percent in March.
GBPUSD opened in Europe at 1.5832 after a 140 pip drop since Friday, and traded sideways most of the session. Sterling is expected to remain weaker against the dollar ahead of the UK CPI data due tomorrow. However against the euro, sterling strengthened due to a broadly weaker single currency. EURGBP fell to a 18-month low, touching 0.8208.
The Japanese yen remains strong due to risk aversion. However, gains are expected to be limited due to talk of easing by the Bank of Japan after a speech by Governor Shirakawa today. USDJPY opened in Europe at 80.60 and hovered around a seven-week low hit in the earlier Asian session. Good US retail sales data lifted the dollar going into the North American session, rising to 80.83.
EURJPY extended losses in early European hours to fall to a two-month low104.63 as the euro was weighed down by Spanish debt concerns. The pair corrected to 105.48.
USDCHF hit a new one-month high early into European trading, peaking at 0.9250 where it consolidated most of the session before dipping on profit taking.
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