Arab Today, arab today euro nears 8month low on eu crisis steps\ doubts
Last Updated : GMT 08:20:11
Arab Today, arab today
Arab Today, arab today

Euro nears 8-month low on EU crisis steps\' doubts

Arab Today, arab today

Arab Today, arab today Euro nears 8-month low on EU crisis steps\' doubts

Dubai - Arabstoday

The euro dropped sharply on Monday, moving toward an eight-month low hit last week, as riskier assets were hammered across the board with markets waiting for more details on fresh efforts from European officials to tackle the debt crisis there. The euro started cautiously higher, bobbing up to $1.3585 amid reports that the EU leaders were considering beefing up the European Financial Stability Fund and new measures to ring-fence debt-ridden Greece, Portugal and Ireland. But that was short-lived as Asian bourses opened sharply lower and emerging economy currencies, like the Korean won, suffered more substantial losses. \"We believe this type of plan would be seen as a credible solution to the crisis,\" said Warren Hogan, chief economist at ANZ Bank in Sydney. \"However, this plan is still only in the \'rumour\' stage, and it may face some tough hurdles in order to be passed by all EU authorities, indeed headlines are already suggesting some German dissent.\" German deputy finance minister Joerg Asmussen said Greece will probably have to wait beyond a key meeting early next month for a decision on an urgently needed bailout. The common European currency dropped 0.5 percent to $1.3429, with some proprietary accounts and long-term investors spotted among the sellers, pushing it close to an eight-month low of $1.3384 plumbed last Thursday. Support for the euro is at $1.3418, with major resistance at $1.3585. A Financial Times report that euro zone officials are waiting for the ratification of the July 21 action plan by the German Bundestag this week, before starting serious talks on increasing the rescue fund\'s firepower or asking for a bigger writedown in private sector holdings of Greek debt was also cited by traders. The euro skidded 0.6 percent against the yen, changing hands at 102.57, a stone\'s throw from a decade low of 102.211 yen. Implied volatilities on euro/yen soared after option barriers below 103 yen were triggered with more triggers looming at 102, 101.80 and 101.50 yen. Option traders, thinking that a fall in spot euro/yen below 100 yen is inevitable, are buying euro/yen puts to prepare themselves for trigger of barriers below 102 yen, with 1-month euro/yen volatilities up to 20 percent, their highest since the days after the so-called flash crash in May last year. Risk reversal spreads stand at 6.25/8.25 percent in favor of euro/yen puts, the highest since early 2009.News reports over the weekend suggested concern now appeared to be turning toward protecting the banking system and preventing contagion through enhancing the 440 billion euro-EFSF more than rescuing Greece. Indeed, as the idea of a Greek default has gained pace, there is talk international authorities were working on a plan toward a \"managed default\" for Greece sometime around the next G20 meeting in Paris in November. At the same time, the European Central Bank (ECB) would likely reinstate a one-year lending facility to shore up banks, while intensifying recession fears could force the ECB to cut rates at its next meeting on Oct 6. \"The lurch lower in risk appetite can only reflect a growing fear that policymakers will be incapable of acting in time or with sufficient potency to turn things around,\" said Hervé Goulletquer, analyst at Credit Agricole. \"Given so much hinges on restoring confidence, not just of financial markets but of all economic agents, this trauma and the associated grim headlines risk tipping the global economy over the edge.\" S&P\'s warning that Europe\'s plans to ramp up its fight against the crisis could result in credit downgrades also dampened investor\'s fragile enthusiasm. The major beneficiary of outflows from less liquid currencies, the dollar, edged up against a basket of major currencies .DXY, resuming its ascent toward a seven-month high above 78.798. It last changed hands at 78.549. But the greenback nudged 0.2 percent lower versus the yen on selling from Japanese exporters. It last changed hands at 76.42 yen, not far from an all-time low of 75.94 yen. The Australian dollar was steady around 0.9775, with its next support level at the Sept 23 low of $0.9669 and then the 50 percent retracement of the year\'s low/high at $0.9571. Resistance is seen around $0.9867, then $0.9927.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today euro nears 8month low on eu crisis steps\ doubts Arab Today, arab today euro nears 8month low on eu crisis steps\ doubts

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 20:48 2017 Wednesday ,22 February

Dividend announcements drive Muscat bourse

GMT 16:56 2017 Wednesday ,22 February

Global gold prices drop

GMT 16:01 2017 Wednesday ,22 February

Tadawul edges down 0.2%

GMT 13:22 2017 Wednesday ,22 February

Canadian stock market closes at record high

GMT 11:50 2017 Wednesday ,22 February

Most Asia markets up as Hong Kong rebounds

GMT 20:52 2017 Tuesday ,21 February

Asia stocks consolidate recent gains; China shines

GMT 10:37 2017 Tuesday ,21 February

Most Asia markets up as rally presses ahead
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday