Market News

Following a threat issued by Moody’s yesterday that French banks could be subjected to a possible credit downgrade, a repercussion of their Greek holdings, the common currency came under further pressure, slipping lower against the U.S. Dollar and Swiss Franc.

Better than expected inflation data from China has helped pull the common currency Euro up out of its recent decline.

Following a slide earlier in the Asian session, the Euro managed to edge up against the U.S. Dollar as market players expect some short covering to offer a temporary respite to the common currency. Traders said that the Euro fell to a low of $1.4285 during the session; as at 2:03 p.m. (JST), the Euro was trading at 1.4336.

After yesterday’s relatively unsurprising announcement from the ECB that the Eurozone might soon see a rate increase, the common currency Euro fell hard, and today struggles to regain its balance.

Ahead of today’s policy setting meeting of the European Central Bank, the common currency managed to recoup earlier losses against the U.S. Dollar.

Following yesterday’s speech to the IMF Conference in Atlanta whereat Ben Bernanke, Chairman of the U.S. Federal Reserve Bank told the crowd that no further stimulus would be forthcoming after the cessation of the current bond purchase program, the U.S. Dollar slipped against the Japanese Yen. In Tokyo trading, as reported at 1:49 p.m. (JST), the greenback slipped against the Japanese Yen, falling 0.2% to 79.95 Yen. A general decline in Asian equity prices also helped to bolsters’ trader risk aversion.

The common currency Euro remains steady following yesterday’s fall from a 1-month peak after Jean-Claude Juncker, the president of the Euro Group, commented that in his opinion the Euro was overvalued.

As the Greek nation prepares to receive further bailout assistance from the special purpose E.U./IMF mission, the common currency held close to a 1-month peak against the U.S. Dollar.

Finding support from Greek bailout hopes and the likelihood of more weak labor data from the U.S., the Euro earlier struck a 1-month peak against the U.S. Dollar. Wednesday’s ADP jobs report, which was far worse than analysts had anticipated, is being used to gauge today’s release of U.S. Labor Department private sector payrolls.

In Asian trading, the U.S. Dollar Index, a measure of the greenback’s value against a weighted basket of major currencies, has fallen to a 1-month low, while in pairs trading, the greenback has steadily held near a record low against the Swiss Franc.

With market hopes pinned on the Greek government, the Euro rose against the U.S. Dollar, striking a 3-week high as it approaches chart resistance that could cap near-term gains.

Following the release of a report stating that Germany might agree to make some concessions on terms for a a Greek bailout, the common currency Euro surged to a 3-week high against the U.S. Dollar.

As market players moved to cover short positions in the U.S. Dollar following last week’s slide, the common currency Euro slipped in Asian trading though managing to hold onto most of Friday’s gains.

Yesterday’s worse than expected data which detailed a still weak U.S. labor market and tepid first quarter growth pushed the U.S. Dollar broadly lower in Asian trading.

The common currency gained against the U.S. Dollar in Asian trading aided by a rise in commodity prices and a the recent release of a report that the Chinese central bank is considering buying Portuguese bailout bonds.