Forex Forums | ForexLasers.com


Go Back   Forex Lasers Forum > FOREX TRADING > News trading


Dollar retains gains, weak German data checks euro

News trading


Reply
 
LinkBack Thread Tools Search this Thread
  #1  
Old 22-06-2012, 14:41
Level 1 Lasers Member
 
Join Date: May 2012
Posts: 2
Default Dollar retains gains, weak German data checks euro

The dollar held gains against most major currencies on Friday after Moody's downgraded 15 major banks and worries about global growth pushed investors to the safe-haven greenback.

The euro was subdued, holding above it lowest levels in more than a week against the dollar, after grim German business sentiment data reminded investors that Europe's largest economy was also struggling due to the region's debt crisis.

German business sentiment fell for a second successive month in June to its lowest in more than two years, reinforcing indications given by this week's ZEW and factory surveys that the economy was losing momentum.

Weak euro zone data and rising borrowing costs for peripheral countries will add pressure on the European Central Bank to cut interest rates or expand liquidity operations. That prospect is likely to keep the euro under pressure.

"If the general flow of data out of the euro zone continues to be as bad as it has been recently then the bias is still to the downside for euro/dollar," said Adam Cole, global head of FX strategy at RBC Capital Markets.

The euro was at $1.2550, well below a one-month peak of $1.2748 set on Monday, having hit a session low of $1.2519 on trading platform EBS on Friday. Traders said Asian sovereign investors were buying near the day's lows after macro funds sold.

They cited stop-loss orders below $1.2510 and said a decisive break of $1.2520 could open the way for a test of $1.2288, the near two-year low struck on June 1.

The dollar index was flat on the day at 82.310, having risen to 82.465, its highest since June 13.

The index was on track for its biggest weekly gain since early May, having staged its biggest rally in more than three months on Thursday after surveys of business activity from China to the euro zone and the United States darkened the outlook for the world economy.

Adding to the gloom, Moody's on Thursday cut the credit ratings of 15 global banks, including JPMorgan and Morgan Stanley.

"I'm sitting on the sidelines - very low risk on the whole compared to what we would normally use," said Pierre Lequeux, head of currency management at Aviva Investors in London.

"The big question mark out there is over what is going to come out of Europe. Are we going to see some progress?"

reuters
Reply With Quote
  #2  
Old 12-07-2012, 09:08
Level 1 Lasers Member
 
Join Date: Dec 2011
Posts: 15
Default Re: Dollar retains gains, weak German data checks euro

I think that the big players, meaning banks and institutions, have made their decisions regarding their action on the Euro in the foreseen future. Nobody believes that Europe can make it through this rough debt crisis, which is getting more and more severe in spite the attempts of the ECB & IMF. Therefore, they are getting rid of Euro positions and concentrating on non-European currencies, (even GBP & CHF are falling these days). So from my point of view, nothing can stop the Euro from sliding to 1.20, as I am quite sure that we are going to see the Euro around 1.15-1.58 by the end of the year.
Reply With Quote
  #3  
Old 14-07-2012, 13:03
Level 1 Lasers Member
 
Join Date: Jul 2012
Posts: 3
Default Re: Dollar retains gains, weak German data checks euro

I agree that the EUR will be under pressure for some time however I dont think that hit will hit 1.10. The reality is that there will still likely be allot of support from governments as there will be too much to looses if it drops to these levels.
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are Off
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
European markets drop amid US debt jitters and weak earnings ronaldfx News trading 1 14-07-2015 11:53
USD/JPY low on weak US dollar ronaldfx News trading 0 29-12-2011 07:57
I have a gap in data! HELP! OilFxPro General MT4 / MT5 discussion 1 19-12-2011 08:26
German Finance Ministry to ban EUR Derivatives Sheumais Forex Discussion 0 18-05-2010 19:41
Will the UK join the Euro? delirio4 Forex Discussion 9 18-02-2009 18:47


All times are GMT. The time now is 17:14.


Powered by vBulletin® Version 3.8.10
Copyright ©2000 - 2019, vBulletin Solutions, Inc.