EU Morning Report - Single currency on free fall
|Written by Easy-Forex|
|Wednesday, 30 May 2012 06:50 GMT|
The euro (EUR) recorded losses against most of its major counterparts as risk aversion overtook markets following developments in the eurozone. There were reports that the European Central Bank (ECB) rejected Spain's proposal to recapitalise its banking sector directly via sovereign bonds. Also, the Bank of Spain Governor Ordonez will resign on the 10th of June, a month earlier before his term ends, as criticism of poor banking supervision heightened. Versus the US dollar, the euro dropped to 1.2477 from 1.2520 – a near 2-year record low. ECB President Mario Draghi is due to speak at the European Policy Center, in Brussels at 13:30 GMT and investors worldwide will closely monitor this.
The US dollar (USD) appeared stronger versus a basket of currencies, as eurozone woes favored the buying of the greenback. The US economic data were put in the shade by the news coming out of Europe. Nevertheless, the catalyst needed for more gains never came as the Consumer Confidence index fell to 64.9 this month, the lowest figure since January. Versus the Swiss franc (CHF), the greenback rose to 0.9626 from 0.9599. The break through the 0.9610 area, a previous resistance level, could open the way for the pair to record higher highs.
Oil prices dropped to 90.21 from 90.71 dollars a barrel. Gold (XAU) plunge to 1548.00 from 1574.76 US dollars an ounce. Against the euro, gold dived to 1243.89 from 1257.31 euro an ounce. Silver (XAG) moved down to 27.7475 from 28.3725 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