Forex Review – Euro falls below $1.32

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USDJPY slid down to 83.28 in the U.S. trading session from an earlier high of 84.08. The dollar decline  accelerated after lower than expected U.S. existing home sales.

Elsewhere, the dollar gained against the euro, Canadian and Australian dollar. The ICE U.S. dollar index which tracks the greenback against six major currencies, rose to 79.654 compared with 79.616 on Tuesday.

EURUSD fell to a low of 1.3177 during the U.S. session as risk aversion returned and markets were cautious as the focus is beginning to shift to Spain and away from Greece. Earlier, the euro had climbed to an almost two-week high of $1.3283 after the Greek parliament had approved the second bailout deal.

The widening in the gap between Spanish bond yields and those of safe-haven German Bunds sparked concerns over the euro zone debt crisis. EURJPY fell to 110.03 from 111.42.

USDCAD rose to 0.9934 after bouncing from an earlier low of 0.9873. AUDUSD extended losses to a session low of 1.0420 compared to an earlier high of 1.0523.

Sterling fell sharply against the dollar after the release of the Bank of England minutes from the last policy meeting on March 8. The minutes were more dovish than expected and showed two MPC members wantedfurther stimulus measures and to expand the bank’s asset purchase program by 25 billion pounds. Also disclosure of February’s much higher-than-expected UK public sector borrowing figures weighed on the pound.

Meanwhile, British Finance Minister George Osborne unveiled his 2012 budget today , with deficit cutting measures.  GBPUSD fell further to a low of 1.5816 in the U.S. session from an earlier high of 1.5922.