Forex Review – Euro hits record low against Swiss Franc

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There were low volumes in Euro trading today as many European Markets were closed this Monday for a bank holiday. No significant movements in EURUSD, mostly range bound since Friday, hovering at month lows. What the Euro needs to be lifted is a finalized agreement by European policy makers on s Greek debt solution. There is a deadlock over whether private investors would take part in a restructuring of Greek debt. EURUSD traded between 1.4390 and 1.4324.

 

Sterling gained against the U.S. Dollar in the European session, finally breaking away from month lows reached on Friday after weak UK industrial output data weighed Cable down. GBPUSD rose 105 pips from 1.6228 to a session high of 1.6337. Meanwhile, the Pound had an advantage over a weaker Euro today, also because London markets were open while most of major European markets were closed. Euro fell from 0.8841 to 0.8799. Inflation data will be released in the U.K. on Tuesday which will cause some movements in the Pound. Even if the data show inflation is higher, expectations are low for an interest rate hike in the near future.

 

The Swiss Franc shone today as its safe haven status increased its demand amid growing uncertainty in global growth and Eurozone debt. The Euro hit a record low against the Swiss franc in European trading, as concerns over the lack of a Greek debt solution yet took centre stage. EURCHF dropped 1335 pips from 1.2138 to 1.2002. Meanwhile, USDCHF also plummeted 104 pips from 0.8453 to 0.8352.

 

The Dollar fell from its Asian session highs against the Japanese Yen as traders booked profits. USDJPY has been choppy today as concerns over the Euro, Greek debt and a drop in global stocks prompted some market players to unwind carry trades funded with the U.S. dollar and Yen. USDJPY opened down at 80.47 and hit lows of 80.22.

 

EURUSD GBPUSD EURGBP USDCHF USDJPY
OPEN

(07:00 GMT)

1.4347 1.6228 0.8840 0.8449 80.47
DAY’S HIGH 1.4390 1.6337 0.8841 0.8453 80.48
DAY’S LOW 1.4324 1.6224 0.8799 0.8352 80.22
CLOSE

(14:00 GMT)

1.4375 1.6333 0.8800 0.8371 80.37

Note: Daylight Saving Time in effect for GMT