Euro fell off its month highs hit in the earlier session against the Dollar after bearish comments from Fed Chairman Ben Bernanke. Concerns on U.S and global growth soon sunk in and investors took a risk off sentiment. Risk in general was sold in Asian trading. Meanwhile, the Greek debt issue is still lingering despite IMF-EU efforts to control it, preventing the Single Currency from rising too high. EURUSD fell from opening highs of 1.4693 to lows of 1.4642.
GBPUSD opened the Asian session at 1.6443 and mirrored EURUSD, falling to 1.6404 in what was an overall risk-off sentiment in markets. Meanwhile, investors are still concerned with the recent IMF report which sees UK growth slowing this year to 1.5%, which will push the Bank of England to maintain rates unchanged and possibly more tightening of monetary policy. EURGBP consolidated at its recent highs of 0.8935 trading in a range all session.
The Japanese Yen benefited from Dollar weakness after bearish comments from U.S. Fed Chairman Ben Bernanke added to worries about the slowing global economy. Yen is seen as a safer currency versus the greenback. USDJPY fell to a one-month low touching 79.74 from earlier highs of 80.27.
The Australian Dollar slid in Asia against the U.S. Dollar as general risk-off sentiment in the markets weighed the Aussie down and traders were unwinding long positions after pessimistic comments by Fed Chief Ben Bernanke. Despite good news on Australian home loans rising 4.8 percent in April, the market chose to ignore the data and went with the negative news from the Wall Street Journal report on the Aussie Dollar running out of fuel. AUDUSD dropped from the open price of 1.0719 to 1.0638.
Gold slipped to $1,538.08 but analysts see plenty of room for its continued rise as investors will flee from riskier assets and invest in the safe haven precious metal. With the U.S. dollar under pressure, equity markets falling, debt crisis in Europe and overall global growth concerns, gold will always shine more during increased market volatility.
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