European Session – Euro remains heavy on Italy concerns
March 28, 2013 1:41 pm
The European session on Thursday was calm, ahead of a long Easter holiday in most countries, where markets will be closed from Friday until Tuesday.
Euro remained heavy, trading most of the session below $1.28, and disappointing German unemployment data adding to losses, while Italy continues to contribute to market uncertainty. Concerns over Cyprus and a contagion have now eased as the bailout deal has been finalized.
EURUSD opened in Europe at $1.2797 and dropped to a low of $1.2754 after data showed unemployment in Germany rose more-than-expected in March to a seasonally adjusted 2.94 million, marking a 13,000 increase.
EURJPY fell to 119.73, a new one-month low, down from a session high of 120.77. EURGBP dropped to a low of 0.8414, the lowest since January 24.
However, as the US session came around, buyers came in to buy on the dip, lifting euro and helping recover some earlier losses. EURUSD rose to $1.2822, EURJPY to 120.93 and EURGBP to 0.8475 in early New York trading.
Leading into the long Easter holiday weekend, there is likely to be some position squaring which could cause temporary support for the single currency.
However this will be limited as Italy will weigh. It has been a month since Italy held a general election that was indecisive, and it is unlikely to have a viable government any time soon.
Yen remains firm today, up 0.4 percent against the dollar, but still within this week’s narrow range of about 140 pips between 93.52 to 94.95. The focus for yen traders is a combination of risk aversion, fiscal year‐end flows and the outlook for Bank of Japan monetary policy, with a BOJ meeting next week.
Cable experienced some volatility during the London session, fluctuating from highs of $1.5174 and lows of $1.5110. There was little in terms of key tier-one UK economic data to affect the pound. Focus will be on next week’s Bank of England policy meeting and rate setting.
The European session on Thursday was calm, ahead of a long Easter holiday in most countries, where markets will be closed from Friday until Tuesday.
Euro remained heavy, trading most of the session below $1.28, and disappointing German unemployment data adding to losses, while Italy continues to contribute to market uncertainty. Concerns over Cyprus and a contagion have now eased as the bailout deal has been finalized.
EURUSD opened in Europe at $1.2797 and dropped to a low of $1.2754 after data showed unemployment in Germany rose more-than-expected in March to a seasonally adjusted 2.94 million, marking a 13,000 increase.
EURJPY fell to 119.73, a new one-month low, down from a session high of 120.77. EURGBP dropped to a low of 0.8414, the lowest since January 24.
However, as the US session came around, buyers came in to buy on the dip, lifting euro and helping recover some earlier losses. EURUSD rose to $1.2822, EURJPY to 120.93 and EURGBP to 0.8475 in early New York trading.
Leading into the long Easter holiday weekend, there is likely to be some position squaring which could cause temporary support for the single currency.
However this will be limited as Italy will weigh. It has been a month since Italy held a general election that was indecisive, and it is unlikely to have a viable government any time soon.
Yen remains firm today, up 0.4 percent against the dollar, but still within this week’s narrow range of about 140 pips between 93.52 to 94.95. The focus for yen traders is a combination of risk aversion, fiscal year‐end flows and the outlook for Bank of Japan monetary policy, with a BOJ meeting next week.
Cable experienced some volatility during the London session, fluctuating from highs of $1.5174 and lows of $1.5110. There was little in terms of key tier-one UK economic data to affect the pound. Focus will be on next week’s Bank of England policy meeting and rate setting.
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