Forex Asia Review – Euro weakens as Greek debt issue drags on

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The Euro fell against the Dollar as concerns about Greek debt came back to the surface to unnerve the market, as the Single Currency eased back to 1.4402 in Asian trading. The main issue investors are worrying over is not the fact that Greece is likely to default but rather over the disagreement and deadlock over the involvement of private investors in the rescue scheme. As this deadlock drags on it makes investors nervous.


Sterling declined against a strengthening Dollar in Asian trading. With no major news event to lift the Pound and the Dollar gained against a basket of currencies on Greek debt worries, GBPUSD fell to 1.6352. Meanwhile, low expectations of a rate hike by the Bank of England anytime soon will likely weigh Sterling down.


The Japanese Yen and Dollar were range bound between 80.63 and 80.37 where the pair seemed to have stabilised after USDJPY rose from lows on Tuesday of 80.14. The Yen weakened versus the Dollar after positive economic data yesterday on US retail sales and PPI made the greenback jump against Yen. Meanwhile, Japanese BSI Manufacturing Index dropped much worse than expected.


After a dipping from its week high, the Australian dollar popped back up to near Tuesday highs after the Reserve Bank of Australia Governor Glenn Stevens mentioned that an increase in interest rates is still likely to be needed to restrain inflation. AUDUSD hit a session high of 1.0713 from lows of 1.0657. On Tuesday the Aussie jumped against the greenback after an array of Chinese reports showed industrial production and retail sales recorded solid growth. China is a major trading partner for Australia.


Gold stabilized into a range after rising on Tuesday boosted by inflation pressures in China, hitting highs of $15,27.13 in the Asian session. Gold acts as a hedge against inflation.



(22:00 GMT)

1.4439 80.47 1.6369 1.0683 116.21 1523.18
DAY’S HIGH 1.4450 80.63 1.6382 1.0713 116.46 1527.13
DAY’S LOW 1.4402 80.37 1.6352 1.0657 115.79 1523.08

(06:00 GMT)

1.4414 80.48 1.6366 1.0699 116.03 1524.17

Note: Daylight Saving Time is in effect for GMT