Home > All > Forex Market Review – Euro climbs above $1.26; dollar down after poor US retail sales
Posted on June 13, 2012 by Trading Point Investment Research Desk at 8:43 pm GMT
Euro extended its advance versus the dollar in the U.S. session for a second straight session as market sentiment improved due to some positive news regarding Greece. A Financial Times report mentioned that the EU may be willing to ease the terms of the Greek bailout. Also, Alex Tsipras, the leader of the Greek political party Syriza, that opposes the bailout, announced today that he wants Greece to remain in the euro zone, even if he wins. All this news flow was positive for the euro. EURUSD climbed to a high of 1.2609.
However euro remains vulnerable as Spanish 10-year bond yields remain at high levels even after the bank bailout and there is also rising concern that Italy will soon require a bailout as Italian bond yields are on the rise too. Meanwhile there is still uncertainty about the outcome of the Greek elections on Sunday.
Cable had a choppy session, falling to 1.5509 from 1.5589 after breaking key support levels.
USDJPY fell 0.4 percent to 79.28 after government data showed May US retail sales fell for a second consecutive month, marking the biggest monthly decline in two years. Euro rose against the yen, as the single currency bounced against most majors during the New York session. EURJPY traded above the key 100.00 level for the first time since Monday but was unable to sustain that level for very long.
Dollar fell against the Swiss franc after the weak US retail sales data, with USDCHF dropping to 0.9520.
Gold gained due to the weaker dollar, as the two usually have an inverse price relationship. Gold rose over $14 to $1,624.60 after dollar fell due to weak US retail sales data.
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