Euro extends losses against Dollar after investors revisit concerns over sovereign debt

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The Euro today as part of the Europe Session initially gave hopes of a positive recovery after strong growth domestic data was announced in Germany and France, two of the major Eurozone economies. As the Euro was already following an upward move this had helped the currency rise to a two day high. However this was proven to be only temporary as during the US session investors started considering the debt struggling issues in the Eurozone and hence their risk aversion was triggered. Following this concerns the EURUSD started declining and dived to a 6-week low after it was following a steep downward move. With the EURUSD pair currently being traded at 1.4109 only a few hours before the markets close is of high interest to see how the currency pair will start the next Asian session.

The Sterling has continued to decline against the US Dollar. The US session opening found the GBPUSD being traded at 1.6258, it recorded a slight peak within the next hour and then it has been dropping in value. During the day strong Consumer Price Index figures were announced in the USA indicating a further inflation rise that could signal a US interest rate hike. The UK consumer price figures which are of vital importance are to be announced in Tuesday. The GBPUSD pair is currently traded at 1.6185.

The US Dollar today was stronger than the Swiss Franc and was able to record a near 70 pips. The Dollar was supported by its strong inflationary data, while the Franc initially lost some ground against the Euro from players who speculated a Euro recovery following the strong growth data from Germany and France. The US session opened with the USDCHF pair being at 0.8858, rising as high as 0.8945 while it is currently traded at 0.8924.

The Canadian Dollar suffered major losses against the US Dollar today. The Canadian currency recorded its lowest value against the American greenback in over six weeks. This was due to a massive sell-off of the Euro against the US Dollar combined with a retreat in the oil prices that gave a boost to the greenback. The Loonie had followed a massive upward move to reach as high as 0.9743 while is currently traded at 0.9691.

The Gold today had declined in value after it was unable to break the strong resistance level it came across yesterday at around USD1516.50 an ounce. The precious metal dropped as low as USD1482.63 an ounce dragging with it the value of the Canadian Dollar and following a rise in the American Dollar