| |

Tuesday, 4 Oct 2011

EUR Plummets as Greek Debt Woes Return

The EUR dropped to a 10 year low versus the Japanese Yen as fears Greece will default materialized. The common currency also dropped below $1.33 versus the USD as investors turned to the safety of the HPY and greenback.

Daily Trenddowndowndownupdownup
Weekly Trenddowndowndownupdowndown

Economic News

USD - USD Surges as Uncertainty Hits Markets

Euro-Zone concerns overshadowed the upbeat economic data from the release of the better than expected the ISM Manufacturing report, bringing down market sentiment and pushing the safe haven currencies USD and JPY higher. Global stocks also dropped Monday as bearish sentiment ruled markets.

The dollar slipped 0.7% to 76.65 Japanese yen after the Bank of Japan's tankan survey showed business sentiment turned positive in the July-through-September period

Markets are looking forward to Friday's U.S. data on nonfarm payrolls for September, with the expectation of another lackluster job growth report. This dampens market sentiment further and provides greater support for the greenback.

Today' traders should follow the speeches of Fed Chairman Bernanke and ECB President Trichet as they are expected to shed light on current market condition and guide market sentiment short term.

EUR - Euro Hits 10-Year Low versus Yen

The EUR reached its lowest point against the yen since June 2001on Monday, touching ¥101.54. The EUR also fell below $1.33 for the first time since Jan. 18.

The common currency plummeted despite positive economic data from the US as concerns of Greek default overshadowed markets and pushed investors to safety. With all eyes on Greece this coming week, traders should follow today's speeches by Fed Chairman Bernanke and ECB President Trichet as they are expected to shed light on current market condition and guide market sentiment short term.

JPY - JPY Gains versus Major Counterparts

The Yen climbed against the Dollar Monday after the Bank of Japan its quarterly Tankan index of sentiment increased to 2 in September from minus 9 in June, encouraging investors to take refuge in Japan's currency.

Further boosting the Japanese currency were concerns from the Euro-Zone about an imminent Greek default and uncertainties about global growth prospects. Better than expected economic data from the US was unable to mollify the bearish market sentiment.

A continuation of dampened global sentiment will likely push the Japanese currency even further.

Crude Oil - Crude Trades below $77 a Barrel

Oil fell to the lowest level in more than a year Monday on concerns that a Greek default will lead to a decrease in global fuel consumption.

Light, sweet crude for November delivery settled down $1.59, or 2%, to $77.61 a barrel on the New York Mercantile Exchange, their weakest finish since Sept. 28, 2010.

Crude futures briefly turned higher after a better-than-expected U.S. manufacturing report pushed global equities higher, however, the report was not enough to maintain positive mood in the markets and crude returned to losses.

A continuation of bearish sentiment will likely push Oil towards $75 a barrel.

Technical News


The EUR/USD pair continues to slide and has fallen below the 1.3300 level for the first time in nine months. The next significant support level appears to be at the located at the 1.3200 level. If the pair will fall below the support level it may signal that the bearish trend has potential to further extend, and reach as low as the 1.3050 level.


After seeing a mild bullish correction and reaching as high as the 1.5664 level, the cable has once again resumed the bearish trend. Currently, both the MACD and the Slow Stochastic on the 4-hour chart are providing bearish signals, suggesting that the bearish trend has more room to go, with a key-target level of 1.5350.


The USD/JPY pair continues with the flat trading and keeps on trading within the 76.00-77.80 range. The pair currently seems to be on its way towards the 76.00 support level. If falls underneath it, the pair might extend its general bearish trend and reach as low as the 74.50 level. Otherwise, the pair is likely to bounce back up once again towards the 77.00 level.


After failing to breach the 0.7050 support level the USD/CHF pair resumed the bullish trend at full steam and is now testing the 0.9200 resistance level. If the pair manages to cross the resistance level it has potential to go further upwards until the next resistance level, which is located at the 0.9340 rate. Going long with tight stops looks to be the right strategy today.

The Wild Card


Following several days of falling prices, gold is one again seeing bullish signals. Gold has managed to recover from its 10-weeks low of $1,532 an ounce, and has reached this week above the $1,660 level. In addition, as the Slow Stochastic on the daily chart is providing a bullish signal, it seems that gold bullish correction has potential to extend. This might be a great opportunity for forex traders to join the correction at its beginning.

Current Time: 11/25 03:54 GMT
# Time $€£¥ Event Per. Prev. Fore. Act. Imp.
07:00CHF+ UBS Consumption Indicator1.65--1
09:30GBP+ BBA Mortgage Approvals 44.5K45.5K-1
10:00EUR+ Italian Retail Salesm/m0.3%0.5%-1
10:01EUR+ German 10-y Bond Auction0.44|1.2--1
10:20AUD+ RBA Assist Gov Debelle Speaks---3
12:30GBP+ Autumn Forecast Statement---3
13:30USD+ Core Durable Goods Orders m/m-0.3%0.5%-5
13:30USD+ Unemployment Claims 271K273K-5
13:30USD+ Core PCE Price Index m/m0.1%0.1%-3
13:30USD+ Durable Goods Orders m/m-1.2%1.6%-3
13:30USD+ Personal Spending m/m0.1%0.3%-3
13:30USD+ Personal Income m/m-0.1%0.4%-1
14:00USD+ HPI m/m0.3%0.5%-1
14:45USD+ Flash Services PMI54.855.2-1
15:00USD+ New Home Sales468K500K-3
15:00USD+ Revised UoM Consumer Sentiment93.193.2-3
15:00USD+ Revised UoM Inflation Expectations2.5%--1
15:30USD+ Crude Oil Inventories0.3M--3
17:00USD+ Natural Gas Storage ---1
21:45NZD+ Trade Balance-1222M-1000M-5
Full FOREXYARD calendar

Open Live Account Open Demo Account