ForexLive US Session Wrap: IMF comments hasten the Euro slide

Author: David Horton | Category: News

It was a Euro day: in fact a Euro DOWN day ! Most of the key news from the EU Summit was released in European time and the EUR/USD opened our session around 1.3265. It was supported on dips with good buying from the Middle East and later by ACB interest however heavy selling ensued following IMF comments after the Ireland downgrade which alluded to further contagion and possible similar treatment for Belgium, Greece and Spain. Stops were triggered below 1.32 and with hardly a pause the pair traded down to 1.3134, settling back late afternoon at 1.3174. Range 1.3358/1.3134

The EUR demise dragged EUR/JPY to 110.41, now trading just above at 110.55; EUR/GBP ranged 0.8552/0.8466 swinging with the fortunes of two heavy components as Cable also traded heavily throughout the session.

Cable ranged 1.5585/1.5455 and GBP/JPY closes130.20 near it’s 130.05 low and GBP/AUD hitting a new low with a strong A$ at 1.5679.

USD/JPY held well throughout the session and closes at 83.95 inspite of lower Treasury yields and USD/CHF ends the day at 0.9693 near a 0.9719 high. EUR/CHF found a new low at 1.2722 but closes 1.2772.

AUD/USD was the other resilient pair of the day holding well and closing at 0.9884

Equities have had a quieter day with S&P at 1243.60 and Gold has recovered from bearish couple of days to rebound to $1377.30 from a low $1364.90

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