EU Morning Report - Eurozone stands by Greece
|Written by Easy-Forex|
|Tuesday, 19 June 2012 07:03 GMT|
The euro (EUR) recorded losses against most of its major counterparts as risk appetite retreated. This was due to renewed fears that Greek politicians will not be able to form a coalition government in a convincing manner and time. European Commissioner Barroso, talking from the G20 meeting, said that Europe stands by Greece, ready to continue its support but that the troubled nation must honor obligations and apply the necessary reforms to get more help. Eurozone rejected reports that the troika is considering an extension of the Irish loan payments.
The US dollar (USD) appeared strong versus a basket of currencies, as the euphoria following the positive Greek election results faded during the day. Against the Swiss franc (CHF), the US dollar rose to 0.9534 from 0.9454, after the 0.9420 acted as a support area. A break below yesterday’s low is needed to pave the way for the pair to reach lower lows.
The Australian dollar (AUD) went as low as 1.0056 versus the US dollar, but managed to pull itself back and end the day flat at 1.0111. The minutes from Reserve Bank of Australia's meeting on June 6th revealed a sense of calmness and the decision to cut their lending rate by 0.25% was labeled as "finely balanced".
Oil prices plunged to 82.80 from 84.47 dollars a barrel. Gold (XAU) rose to 1627.83 from 1618.71 US dollars an ounce. Against the euro, gold dropped to 1294.61 from 1295.16 euro an ounce. Silver (XAG) moved up to 28.7530 from 28.6170 dollars an ounce. Stay in tune throughout the day with foreign exchange bullets!
1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™
3 at the time of writing