Posted on June 12, 2012 by Trading Point Investment Research Desk at 7:48 pm GMT
Euro had a choppy trading day but made up from some losses against the dollar during the U.S. session. EURUSD bounced off a session low of 1.2441 to briefly hit a high of 1.2514. Further gains were capped as investors are nervous about the euro zone and have a bearish outlook on the currency. Despite Spain’s bank bailout Spanish bond yields reached near record highs today. Meanwhile there is uncertainty about the Greek elections on Sunday and if Greece will have to exit from the euro zone.
Sterling rose 0.4 percent against the greenback to hit a high of 1.5589. Sterling fell after weak UK manufacturing production data but ignored it and subsequently recovered.
USDJPY ended the day only slightly higher from where it started, gaining back losses made, last trading at 79.49. EURJPY consolidated, last trading at 99.36 in the US session. Euro is struggling to hold its ground but market participants are fearful of letting yen appreciate too much ahead of a BOJ policy meeting this week in case the bank decides to ease policy.
The Canadian dollar strengthened against its U.S. counterpart helped by gains in North American equity markets and some commodity prices, including U.S. crude oil prices. Oil is a major Canadian export and the loonie is a commodity-linked currency. USDCAD fell to a low of 1.0255, down 0.6 percent on the day. Crude oil rose over US$2.30 on the day.
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