EURUSD Daily Analysis Update – Euro/Dollar Exchange Rate News
(EUR/USD News And Analysis Update – Forex-FX-4x.com)
- European equities dropped and Italian/Spanish bond yields moved higher today as the market was increasingly concerned over the political stalemate which could potentially see Greece as the first nation to drop the European common currency. The Greek government is due to run out of funds as soon as June and Athens does not have a government ready to negotiate the upcoming aid tranche. The drop in the EUR comes as speculators bet on a potential Greek default and associated euro exit.
- The market has no appetite for risk at present with US 10-year Treasury Note yields falling to 1.77 percent (remember price and yields move inversely). Yields dropped by as much as 0.07 percent which is the lowest seen since October 4th 2011. This is still short of the record of 1.67 percent set on September 23rd.
US 10-year Treasury Note Yields
- This is the second week in a row that the EURUSD has not closed the gap from the Sunday open and is testament to the strong bearish pressure on the euro. Euro weakness was not limited to the EURUSD major as EURGBP likewise dropped almost 70 pips to the ultimate low of today at 0.7960 and is currently trading down 0.70% on the week/day.
EURUSD Daily Chart
- The dollar index is trading at 80.64 which is 0.35% up on the day and USDX price is close to taking out the 15/3/2012 80.73 high. However, this level has seen price pivot interaction on previous hits and may yet do so again. The other currencies to benefit from the safe haven flows were the GBP and the JPY. Gold was also lower on the broad based dollar strength and is down 1.64% on the day/week.
USD-X Dollar Index