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12 Jul 2013
Session Recap: The Euro resists the France & Portugal shakes
FXstreet.com (San Francisco) - The Euro traded lower today against the Greenback but the damage could be biggest as the eurozone was under pressure on Friday on the back of Fitch's decision to downgrade France from its AAA and the Portuguese political turmoil and its consequent but brief rise in yields.
The EUR/USD declined in the early American session to test the 1.3000 area but it managed to recover ground and even it rallied to test the 1.3100 area until Fitch called to order and the EUR/USD remained calm and it traded sideways around 1.3065.
The common currency, however, was stronger against the Japanese yen on the back of the FXstreet.com Chief Analyst says as the "market is not about the stronger, but about the less weak currency." On the other hand, the EUR/GBP was lower on the day.
The AUD/USD is still waiting for the promised bounce but it never comes. The AUD/USD reached another fresh multi-year low at 0.9200. Since April 11th, the Aussie has collapsed around 1585 pips. On the other side, the USD/CAD posted its first positive day in the last 5 and it closed just below the 1.0400 level.
Main headlines in the American session:
Portugal slides deeper into political crisis
US: Annual Producer Price Index grows more than expected in June
7.90% yield on 10-year Portuguese bond
US: Reuters/Michigan Consumer Sentiment Index falls against expectations in July
Portuguese 10-year yield back below 7%
Fitch downgrades France to AA+ from AAA
Fed’s Plosser: The time has come to reduce pace of bond buying
Wall Street closes its second best week in 2013 by Bernanke
The EUR/USD declined in the early American session to test the 1.3000 area but it managed to recover ground and even it rallied to test the 1.3100 area until Fitch called to order and the EUR/USD remained calm and it traded sideways around 1.3065.
The common currency, however, was stronger against the Japanese yen on the back of the FXstreet.com Chief Analyst says as the "market is not about the stronger, but about the less weak currency." On the other hand, the EUR/GBP was lower on the day.
The AUD/USD is still waiting for the promised bounce but it never comes. The AUD/USD reached another fresh multi-year low at 0.9200. Since April 11th, the Aussie has collapsed around 1585 pips. On the other side, the USD/CAD posted its first positive day in the last 5 and it closed just below the 1.0400 level.
Main headlines in the American session:
Portugal slides deeper into political crisis
US: Annual Producer Price Index grows more than expected in June
7.90% yield on 10-year Portuguese bond
US: Reuters/Michigan Consumer Sentiment Index falls against expectations in July
Portuguese 10-year yield back below 7%
Fitch downgrades France to AA+ from AAA
Fed’s Plosser: The time has come to reduce pace of bond buying
Wall Street closes its second best week in 2013 by Bernanke