Forex Market Review – Euro under pressure as Greek talks in focus; aussie falls on weak data

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Forex News - Euro takes pause from recent dropEuro opened lower in Asia, face by downward pressure due to concerns about the outcome of Greek debt talks. A meeting over the weekend between Greek leaders and creditors faced some hurdles, delaying reaching an agreement on a second bailout that Greece needs to avoid default. Talks continue today.

 

EURUSD opened the Asian session at 1.3112, down from Friday’s close in New York at 1.3157. The pair edged down to 1.3080 before the European session opened.

GBPUSD opened at 1.5801 and was pressured lower to 1.5767due to damp risk sentiment.

 

The Australian dollar fell against most of its major counterparts after weak retail sales data showed a decline of 0.1 percent in December from a month earlier, despite expectations for a 0.2 percent gain. AUDUSD fell off Friday’s five-month high to open in Asia at 1.0753 and drifted lower to 1.0709. The focus turns to the Reserve Bank of Australia policy meeting tomorrow. Consensus is that the central bank will lower interest rates to 4 percent from 4.25 percent, which will further weaken the aussie.

 

USDJPY pushed higher in Asia, as the dollar is in an upward momentum following the better than expected US employment data on Friday. Non-farm payrolls rose 243,000 beating estimates of 150,000, and higher than December’s 200,000. The data gave optimism that the world’s largest economy is on a strong recovery. USDJPY opened at 76.59 and rose to 76.79.

 

Yen gained against the broadly weaker euro that was hurt by weak sentiment. EURJPY opened in Asia at 100.47 and slid to a low of 100.17.