Uncertainty and debt woes mark the start of the week for investors, where the dollar rebounded strongly and benefited from the euro's negativity to reclaim some losses.
Investors are wary over the situation in the euro area with eyes on the debt crisis amid lingering downside pressures on the global recovery. China's move to raise the reserve requirements yet again was further downside pressure on the market on fears of further monetary tightening to restrain global growth.
Investors are wary over the situation in the euro area with eyes on the debt crisis amid lingering downside pressures on the global recovery. China's move to raise the reserve requirements yet again was further downside pressure on the market on fears of further monetary tightening to restrain global growth.
Investors lack faith in the Greek government, where it did say it did not need a bailout before and eventually was the first to claim support, and now their reiterated stance that they will not restructure debt is not believed in the market as well. On Friday they announced a new 76 billion euro austerity measures through 2015 to meet its deficit target, but still was not enough for investors.
The euro slumped with the star of the week to extend Friday's losses trending south to the lows of 1.4265 leaving the intraday high at early hours of 1.4420 and currently hovering around 1.4278. The pair declined below the critical support at 1.4280 which is essential to keep the upside bias intact for the pair. Stability below this support will reverse the pair's move south and stabilizing above it today will likely revive the upside move towards 1.4470.
The euro slumped with the star of the week to extend Friday's losses trending south to the lows of 1.4265 leaving the intraday high at early hours of 1.4420 and currently hovering around 1.4278. The pair declined below the critical support at 1.4280 which is essential to keep the upside bias intact for the pair. Stability below this support will reverse the pair's move south and stabilizing above it today will likely revive the upside move towards 1.4470.
Greece was not the only downside pressure on the euro, where the Finnish elections also fueled speculation that the nation might block Portugal's request for aid!
Voters supported the euro-skeptics that oppose the rescue packages for Greece or Ireland and Portugal is no different. The True Finns and the Social Democrats are now a strong voice in the parliament and likely can block a vote on the bailout and might even ask for package amendments if it is to pass which is leaving the market puzzled for the time being.
The euro's losses powered greenback which continued to shine today. The dollar index gauging greenback's performance moved higher to record the high of 75.41 and now hovering near around 75.37 leaving the lows intact at 74.85.
Sterling also moved south with the lack of data and dollar strength to strike the low of 1.6241 and rebounded from the critical support to ease the losses and now trading around 1.6270 off intraday highs at 1.6224 and opening levels for today at 1.6309.
Equities, commodities, and currencies moved south to the benefit of low yielders and havens, which only powered the Japanese yen to resist the dollar's strength. The USDJPY moved lower to record the lows of 82.63 down from intraday highs of 83.25 and now hovering around 82.86.
The volatility is likely to extend today with the fears eminent amid the lack of data and a short week for Easter holiday.
Voters supported the euro-skeptics that oppose the rescue packages for Greece or Ireland and Portugal is no different. The True Finns and the Social Democrats are now a strong voice in the parliament and likely can block a vote on the bailout and might even ask for package amendments if it is to pass which is leaving the market puzzled for the time being.
The euro's losses powered greenback which continued to shine today. The dollar index gauging greenback's performance moved higher to record the high of 75.41 and now hovering near around 75.37 leaving the lows intact at 74.85.
Sterling also moved south with the lack of data and dollar strength to strike the low of 1.6241 and rebounded from the critical support to ease the losses and now trading around 1.6270 off intraday highs at 1.6224 and opening levels for today at 1.6309.
Equities, commodities, and currencies moved south to the benefit of low yielders and havens, which only powered the Japanese yen to resist the dollar's strength. The USDJPY moved lower to record the lows of 82.63 down from intraday highs of 83.25 and now hovering around 82.86.
The volatility is likely to extend today with the fears eminent amid the lack of data and a short week for Easter holiday.
