Forex Market Review – Euro bounce loses momentum and slips back

Important: This page is part of archived content and may be outdated.

Euro dipped in the European session after a brief rally into the lower $1.28 levels in the Asian trade. Momentum was not strong enough to keep the single currency propped up and it remains under pressure amid concerns of a possible Greek exit from the euro zone as well as contagion fears as the Spanish banking sector has become fragile. Investors are focused on the new elections in Greece on June 17, which are key to the future of the country.

EURUSD slid 0.5 percent to a low of 1.2756 in the European session after hitting a high of 1.2811 in the Asian session, the highest since May 15.
Euro dipped slightly against the pound, with EURGBP falling 0.3 percent to 0.8064.

Sterling was flat against the dollar, with GBPUSD consolidating into a range between 1.5794 and 1.5838. Lack of economic data kept trading light.

Yen is weaker today ahead of the Bank of Japan policy meeting starting tomorrow.  Speculation is growing that the BOJ will add to stimulus measures this week to support growth and curb yen strength. Although USDJPY saw a mild recovery off three-month lows of 79.98, the pair was not able to maintain momentum after hitting a high of  79.43, and dipped to 79.22.

EURJPY bounced off a three-month low and extended gains from the Asian session to hit a high of 101.56 in European trading before dipping to 101.14.

USDCHF has taken a pause in the strong up trend that prevailed since the beginning of the month as the pair was due for a correction from an oversold level. USDCHF dipped to 0.9373, down from a four-month high of 0.9499 hit on Friday.