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- 05-25-2010 11:57 AM
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on 05-25-2010 at 11:57 AM
Underlying confidence surrounding the Euro was still very fragile and news that the Bank of Spain had intervened to support a regional bank pushed the Euro back to just below the 1.25 area in Asian trading on Monday with further selling pressure in early European trading.
There will be unease over impact of the serious Spanish construction downturn on the banking sector and there will also certainly be wider European concerns, especially as the budget cuts will tend to undermine the growth outlook which will increase non-performing loans.
US existing home sales rose to 5.77mn for May from a revised 5.36mn the previous month with sales still being supported ahead of the expiration of tax credits.
on 05-24-2010 at 10:11 AM
Volatility remained extremely high on Friday with the Euro strengthening to a high above 1.2650 on further speculation over intervention by the major central banks as speculative players pushed to trigger stop losses. The currency was, however, unable to sustain gains in European trading as underlying sentiment was still generally weak. The German IFO index weakened to 101.5 from 101.6 the previous month while there was a dip in the manufacturing PMI index, but there was a gain in the services sector.
The German parliament approved the Euro-zone support package which provided some degree of relief for markets as the immediate threat of political divisions eased. Euro-zone Finance Ministers also met during
on 05-21-2010 at 10:25 AM
The Euro was unable to hold above 1.24 in Asia on Thursday as underlying confidence towards the currency remained very fragile.
There was a decline in Euro-zone consumer confidence for May which may cause some unease over potential spending trends. The German IFO data and Euro-zone PMI data will be watched closely on Friday to assess potential near-term trends.
The US economic data was slightly weaker than expected and this tended to have some negative impact on risk appetite which, paradoxically, also provided some degree of US currency support. Initial jobless claims rose to 471,000 in the latest reporting week from a revised 446,000 the previous week. There was a decline in leading indicators
on 05-20-2010 at 12:05 PM
The Euro re-tested support close to 1.2150 in Asia on Wednesday as confidence remained weak. There were further rumours surrounding the Euro-zone outlook and fears that European governments will not be able to prevent debt defaults. German Chancellor Merkel stated that the Euro was in danger with a policy response needed urgently. The German decision to ban short selling also maintained fears over a lack of unity within the Euro area.
There were a succession of market rumours during the day which contributed to a high degree of volatility. There were rumours that Greece would leave the Euro and this triggered sharp gains for the Euro on expectations that a new hard-currency area could be formed.
on 05-19-2010 at 10:34 AM
The Euro was unable to gain any relief in Asian trading on Monday with stop-loss selling following a break of 1.2330 support pushing the currency to four-year lows near 1.2230. There were persistent fears surrounding the Euro-zone economy and the potential for instability which undermined the currency.
There was a generally downbeat assessment of the situation by ECB President Trichet who stated that the economic situation was the worst faced since at least 1945. In this environment, there were continuing fears over an environment of weak growth and potential long-term break-up of the Euro.
Speculative short Euro positions remained at record levels according to the latest data and this may
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