Range: 1.3075 – 1.3151
Now that details of Ireland’s bailout are common knowledge, should this not be a confidence boost for the Euro? The 85 billion euro injection into the Irish economy has failed to kick-start the Euro; with sellers moving away from Ireland onto the next issue. With this we will no doubt see Portugal under pressure to ask for a pre-emptive bailout, also adding to the woes is that Spain has seen its borrowing costs soar since the Euros inception. The concern is now not of a specific Irish and Greek issue, but a European wide issue..
Range: 0.9592 – 0.9659
The Aussie Dollar lost ground across the board overnight. The primary cause is risk aversion in Asia following falling stocks. In particular the Shanghai composite Index lost 3.1%, amid rumours of a Chinese rate hike. AUD/USD has broken through the 0.9600 mark, but has since recovered currently trading around 0.9630. The next big test for the Aussie Dollar is the GDP reading on Wednesday, as a poor number could add to the downward pressure on the currency pair.
Range: 1.5532 – 1.5572
GBPUSD has moved lower throughout the Asian session, mirroring the Euro’s move. This week the Pound has pushed lower against the US Dollar, and looks likely to continue its Southern journey in the near term as debt fears in the Euro-zone continue to rattle the markets. With a light economic calendar in the UK, market participants should not rule out additional losses in the currency as risk aversion will likely be the main driver this week due to war concerns in Korea and debt contagion fears in the Eurozone.