Euro Pared Losses | IFCM
IFC Markets Online CFD Broker

Euro Pared Losses - 18.11.2011

US Dollar Asian stocks dived once again, extending global slump in equities. Japanese Nikkei lost more than 1% this morning, following a 1.68% drop of the US S&P 500 stock index. Treasuries on the contrary are enjoying an increased demand – the benchmark 10-year notes yield dropped below 2% for the first time this week. Nevertheless the US economy continues to show signs of a modest recovery. The Labor Department reported yesterday that the number of initial jobless claims fell to a seven-month low – 388000. However the head of the New York Fed Bank, William Dudley, said that the central bank could do even more to support the economy. Dudley expressed concerns about forecasts of “prolonged high unemployment”, and added that “If additional asset purchases were deemed appropriate, it might make sense to do much of this in the mortgage-backed securities market.” The dollar’s rally against some of the major peers was undermined due to expectations the Fed may add more stimuli. The dollar index fell from a six weeks high 78.39 to 78.01. Euro The euro was among those currencies that were relatively stable against the greenback yesterday. However at first the euro dropped to a five-week low – 1.3421, as Spanish 10-year bond yield reached 6.97% at yesterday’s government debt auction, getting closer to the widely discussed 7% threshold. At the same time German Chancellor Angela Merkel reiterated that using the ECB is not an appropriate method to finance sovereign governments’ spending. “If politicians believe the ECB can solve the problem of the euro’s weakness, then they’re trying to convince themselves of something that won’t happen,” she said. In the aftermath the single currency managed to recover a part of its losses, as Italian 10-year bonds yield fell below 7% in the secondary market, to 6.83%, after Mario Monti, the new government leader told lawmakers that Italy can help ease the region’s debt crisis by taming its public finances with a “full support” from other euro zone members. In Asian trading hours the euro stayed in a narrow range against the dollar – 1.3446-1.3503. Canadian Dollar The US dollar reached a five-week high against the loonie (1.0300) in early Asian trading hours, despite the decline in Italy’s borrowing costs. The Canadian dollar extended a 4-day drop as oil (the nation’s biggest export), dived yesterday. Light Sweet Crude Oil futures for December delivery fell from 101.76 dollars per barrel to 98.82 dollars. At the same time the currency’s depreciation is favored by expectations that reports today may add to evidence the Canada’s economy is cooling. According to preliminary estimations, inflation in Canada fell in October to 2.7% from 3.2% in annual figures. Pair USD/CAD is showing a moderate but stable growth this week, from 1.0170 on Monday, reaching 1.0300 today.
IFCM Trading Academy - New era in Forex education
Pass Your Course:
  • Get Certificate
trading academy

See Also

image
Follow the Market with Our Live Tools and Calendars
Close support
Call to Skype Call to WhatsApp Call to telegram Call Back Call to messenger