Euro stabilises whilst Aussie tumbles

3 February, 2015

Even though the euro has hardly staged what you would refer to as a relief rally, markets have reacted positively to the proactive approach Greece has shown so far following their recent General Election. Having not met any of heads that make up the Troika or other European leaders, yesterday the finance minister commenced a whirlwind tour of Europe to build up support for its plans to restructure its large debt pile. Borrowing costs on the Greek 10 year bonds declined from their recent 18 month high, EURUSD looks to have stabilised above the 1.1300 level and indices are rebounding. At least for now the hard line that Syriza was taking in the run up to the election is being tempered somewhat, however there is still a long way to go in this saga and the euro for one has to contend with the ECB’s QE which is not something that would normally lead to currency strength.

The big overnight news was a surprise cut in rates from the RBA which has sent AUDUSD to a new five and a half year low. Having been trading above 0.7800 ahead of the decision we now stand at 0.7630 at the time of writing. We warned yesterday that this was an important event to keep an eye on, but few were of the view that a cut would come as soon as now. The NZDUSD has also plunged in sync and has now taken out the 0.7200 level.

Today things are quieter on the economic data front but later this evening focus will be on New Zealand again as unemployment data is released and the RBNZ’s Governor makes a speech.


Source link  
Yuan and Dollar as a weapon in trade wars

The US Nonfarm Payrolls on Friday could even be called boring: the report showed the preservation of a completely healthy labour market...

Disappointment with Fed and tariffs

Trump announced 10% tariffs on Chinese goods worth $300 billion since September 1, thus ending the US-China trade truce after disappointingly...

Fed pushes down stocks

Markets have started the week under pressure. Expectations that the Federal Reserve will cut interest rates by 50 points in July collapsed...


Gold updates new 6-years highs

Gold benefits from a combination of two factors: lower interest rates in debt markets and continuing hopes that the global economy...

Markets recede from the recent highs

A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...

Gold resumes rally, pushing past $1400

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...


Gold rises as markets slip

Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...

Trump says Brexit should happen

President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...

Euro and Gold instead of Dollar

Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...

  


Share it on:   or