EU Morning Report- RBA cuts rates by 25 bps
|Written by Easy-Forex|
|Tuesday, 05 June 2012 06:54 GMT|
The euro (EUR) climbed against the dollar to 1.2542 from 1.2385 supported by a rebound in Asian shares and commodities. Hopes for decisive steps by the EU leaders to tackle the eurozone debt crisis supported sentiment ahead of the G7 conference call today. News that France and the European Commission signaled their support towards a solution of the eurozone stricken banks further supported risk appetite. But the single currency is under pressure as investors are worried about a problematic banking sector in the eurozone and a messy Greek exit from the euro. Attention shifts to Germany’s Factory Orders data as well as eurozone Retail sales figures.
The US dollar (USD) strengthened against a basket of currencies as sentiment in the market improved at the start of the new week. Versus the safe haven Japanese yen (JPY), the greenback jumped to 78.46 from 77.98 as investors remain cautious over an intervention by the Bank of Japan in order to weaken the yen. Focus now turns to the Group of Seven Industrialized Nations conference call where they will discuss developments in the eurozone. US ISM Non Manufacturing is also expected today.
The Australian dollar (AUD) rose against the greenback to 0.9803 from 0.9627 after the Reserve Bank of Australia monetary policy meeting. RBA cut its main cash rate by 25 basis points to 3.5% but the move was less aggressive as investors were expecting a 50 basis points cut. The central bank expressed concerns over the debt crisis in Europe and the global economic slowdown as well as further moderation in growth in China.
Oil edged higher to 84.90 dollars a barrel from 81.19. Gold (XAU) eased to 1608.81 dollars an ounce from 1628.05 and against the euro it rose to 1295.30 from 1309.89. Silver (XAG) edged lower to 27.89 dollars an ounce from 28.62. 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