- European session: The euro fell
Market news
8 March 2011
European session: The euro fell
Data:
06:45 Switzerland Unemployment Rate n.s.a (MoM) (Feb) 3.6%
11:00 Germany Factory Orders s.a. (MoM) (Jan) 2.9%
The euro fell against the dollar as the bonds of Europe’s most highly indebted countries declined relative to those of Germany, amid concern the region’s leaders won’t agree to a comprehensive solution to its debt crisis.
Europe’s common currency retreated from the strongest level in nine months against the yen. Greece is scheduled to auction 1.25 billion euros ($1.74 billion) of 182-day bills today, while Spain hired banks to sell 15-year bonds, according to a banker involved in the deal. The Swiss franc declined as oil fell for the first time in three days and stocks rose, curbing demand for the currency as a haven.
“There is a risk that events in the euro zone will tilt the balance” for the currency, said Neil Mellor, a London-based strategist at Bank of New York Mellon Corp. “The tensions are still there. I wouldn’t want to be particularly long the euro at the moment.” A long position is a bet that the price of a currency or security will rise.
The euro, which has risen 4.1 percent against the dollar this year, has struggled to extend its advance beyond $1.40 as European Union leaders have had trouble coming up with a package of measures to deal with a sovereign debt crisis that forced Ireland and Greece to seek financial aid last year. Leaders are due to meet in Brussels later this month.
EUR/USD: the pair come nearer to support in the field of $1,3900.
GBP/USD: the pair decreased in around $1,6170.
USD/JPY: the pair become stronger in around Y82,60.
Canada releases Housing Starts data for Feb at 13:15 GMT
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