Forex U.S. Review -Most majors end the week down, Dollar stays strong

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Forex News - Euro continues to decline as European debt woes magnifyThe Euro fell further against the Dollar in the U.S. session, mainly because there is so much uncertainty as to whether the Greek government is going to pass the austerity measures. Greece’s parliament is scheduled to vote on the austerity plan on June 29 and 30. EURUSD has fallen 167 pips since the European session high of 1.4305 down to a low of 1.4140 in the U.S. session.


Sterling hovered around its three month low against the Dollar, reaching lows of 1.5960. The Pound has been bruised by negative sentiment and Bank of England minutes which suggest the monetary policy in the U.K. is likely to remain the same as well as interest rates held at record lows. Meanwhile EURGBP remained range bound in U.S. trading, both weak currencies struggling against each other.


The Swiss Franc remained in demand against the unpopular Euro, with EURCHF falling near an all-time low, just 2 pips from yesterday’s record low of 1.1844. Investors prefer to hold a safer asset like the Franc as the Single Currency is weakened and more fragile these days amid concerns that a Greek austerity plan might fail.


The Canadian Dollar fell for a third straight day against the U.S. Dollar, dragged down by tumbling oil prices. Canada is a major exporter of crude oil to the US and is a commodity-linked currency and hence greatly affected by falling oil prices. Crude oil fell to the lowest level in four months after the International Energy Agency announced that its members would release more barrels of crude oil from reserves. The Canadian loonie suffered further today after Bank of Canada’s Governor Mark Carney said in an interview published today in the WSJ that Canadian monetary policy may need to remain stimulative due to “substantial head-winds” facing the economy. Since Wednesday, the Canadian Dollar has lost almost 186 pips against the greenback, with USDCAD rising from Wednesday’s low of 0.9699 to a high of 0.9885 in the U.S. session.


Gold, which typically moves counter to the greenback, fell below the critical $1,500 support line to slide down to $1,498.33 from Wednesday’s high of $1,557.88 as slumping oil prices drove commodities lower. There is temporarily less urge to buy gold as a safe haven since Dollar demand has been rising due to the U.S. Fed ending its bond buyback program (quantitative easing policy) on June 30.



(12:00 GMT)

1.4203 1.6009 1.1866 0.9813 1517.18
DAY’S HIGH 1.4247 1.6036 1.1932 0.9885 1521.98
DAY’S LOW 1.4140 1.5960 1.1842 0.9794 1498.33

(21:00 GMT)

1.4182 1.5968 1.1864 0.9872 1498.78

Note: Daylight Savings Time in Effect for GMT