EUR/GBP is trading a little easier on the day, presently down at .9290 from a European opening up around 9315. Both currencies are suffering from the heightened risk aversion which is evident today. There are any number of negatives for each currency to overcome, and the market seems to be finding it difficult to work out which is the crappiest, although the euro seems to just about winning that dubious accolade at present.
Apart from general risk aversion, Steinenbruek’s recent comments regarding the need for euro zone fiscal discipline; ongoing speculation of an early ECB rate cut/move to quantitative ease; and now increasing concern surrounding euro-zone banks (Spain bailing out regional savings bank and comments from German Finance Ministry concerning health of the country’s Landesbanks) are a few of the negatives weighing on the euro.
For today, sources report buy orders lined up at .9280/85 and then at 9260, with sell stops said to be gathering around .9255.
