State of confusion over Greek rescue package continues
City Index February 16, 2012 1:00 PM
<p>State of confusion over Greek rescue package continues. The euro dropped on Troika officials’ comments regarding a possible delay of some parts or the entire […]</p>
State of confusion over Greek rescue package continues. The euro dropped on Troika officials’ comments regarding a possible delay of some parts or the entire second rescue fund for Greece due to lack of confidence as far as the Greek politicians’ commitment to the austerity deal is concerned. The payment of the bailout might be postponed until after the April general elections.
Range: 1.0652 – 1.0737
Aussie-dollar opened at 1.0696 in Asia, having fallen back yesterday from highs of 1.0776 following comments from PBOC’s Zhou. Doubts over the Greek debt deal and dovish. FOMC comments sent the pair lower throughout the rest of the day to 1.0681 lows in New York and the pair continued to slip in early Asian trade to lows of 1.0671. The release of strong employment data showing a rise of 43K against an expected 10k and fall in the unemployment rate to 5.1% from 5.3% spiked the aussie back to 1.0740, but only served to spark a raft of profit taking in aussie-yen and other crosses. Aussie fell back sharply through 1.0700 to lows of 1.0660. Aussie bids seen towards 1.0660, with stronger demand at 1.0635-1.0640. Offers are from 1.0740, larger at 1.0770-1.0775.
Range: 1.2994 – 1.3057
Euro-dollar opened at 1.3065 this morning in Asia after falling from 1.3191 to 1.3043 in New York last night as risk aversion returned following talk of further delays in the Greek debt outcome and growing pessimism that it will be unable to fulfill its austerity obligations. Comments from EU’s Jean-Claude Juncker that he was hopeful an agreement would be reached on Monday have failed to add any confidence to the single currency which fell to its lows following dovish FOMC minutes. The euro has drifted lower in Asia following Moody’s reviewing 17 global banks for possible downgrades and a weak China FDI; falling to lows of 1.3007 on sales from a major US bank. Support now looks at 1.3005 and then 1.2950, with resistance at 1.3048 and then 1.3096.
Range: 1.5660 – 1.5697
Cable opened in Asia at 1.5697, but had largely held up well following a sharp reversal in risk yesterday as the Greek tragedy rolls on and indecision and delays pounded the euro-dollar in New York to lows around 1.3043. Cable was cushioned by s sharp reversal in euro-sterling as another attempt to break the 0.8400 level plunged the cross from 0.8402 through strong support at 0.8330 to 0.8316 in New York. Asia has seen further pressure on the cross slipping to 0.8304 but the overall risk aversion has also led cable lower to 1.5662 in recent trade following Moody’s announcement that it was reviewing 17 global banks and institutions for possible downgrades. Cable offers sit at 1.5700-1.5710 with bids at 1.5655-1.5665 and 1.5645-1.5650. Euro-sterling support is seen at 0.8280 with a break there pointing to 0.8260.