- Asian session: The euro fell
Market news
10 May 2011
Asian session: The euro fell
Data:
01:30 Australia Trade Balance (Mar) 1.740B
02:00 China Trade Balance (Apr) 11.423B
The euro fell to a six-week low against the yen before Greece sells Treasury bills today amid speculation the nation will need to restructure its debt.
The 17-nation currency dropped against 12 of its 16 major counterparts after Standard & Poor’s fourth downgrade of Greece since April 2010 rekindled concern the region’s debt crisis is escalating.
Australia’s dollar slid before Treasurer Wayne Swan releases his budget today after promises to cut spending.
New Zealand’s dollar dropped after the International Monetary Fund said the currency may be as much as 20 percent overvalued.
Australia’s dollar snapped a two-day advance following comments by Swan yesterday that the government will make “substantial” spending cuts to counter revenue declines caused by the currency’s strength, the nation’s costliest natural disasters and Japan’s record earthquake in March.
New Zealand’s currency may be as much as 20 percent overvalued relative to estimates of the equilibrium exchange rate, the IMF said. Part of the overvaluation reflects the large positive interest-rate differential, which may dissipate with eventual tightening by major central banks, the Washington-based group said as part of an annual review of the country’s economy.
EUR/USD: the pair shown low in the field of $1,4270, then become stronger above a mark $1,4300.
GBP/USD: the pair decreased in around $1,6350.
USD/JPY: the pair grown in around Y80.70.
At 1230GMT US Import/Export Price Index is expected to a 1.8% m/m gain for the Import Price Index.
At 1400GMT US Wholesale Inventories data is due.
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