euro under pressure as greek debt saga continues
Last Updated : GMT 00:11:32
Arab Today, arab today
Arab Today, arab today

Euro under pressure as Greek debt saga continues

Arab Today, arab today

Arab Today, arab today Euro under pressure as Greek debt saga continues

London - Arabstoday

The euro hit a lifetime low against the safe-haven Swiss franc and slipped versus the dollar, as investors worried at policymakers\' struggles over the Greek debt crisis cut their exposure to the common currency. Volumes were on the lower side with many centres in Europe closed for a holiday. The cost of insuring peripheral Eurozone bonds against default hit a record high, while a general lack of appetite towards riskier assets also pushed the euro lower. The euro shed 0.6 per cent against the Swiss franc to trade at 1.2025 francs, having fallen to as low as 1.20. Traders said stop-loss orders were triggered after the euro fell through a previous low of 1.2049, and system-related selling pushed it towards 1.2000 francs. Sharp losses against franc Market participants cited large option structures at that level, adding, a break below 1.20 francs could trigger even more euro selling. Its sharp losses against the franc saw the common currency lose ground against the dollar. The euro was flat at $1.4350, off a session high of $1.4369, as a bout of short covering seen in Asia ran out of steam. Traders cited option expires at $1.43 that could check losses. It is also likely to struggle to get past $1.44, traders said. Among the resistance levels are the 55-day moving average at $1.4398 and a concentration of former chart support around $1.4430/50, which includes previous intraday peaks in May and a 38.2 per cent retracement of the May-to-June rise. \"What the euro needs is a resolution to the Greek crisis and the politicians and the central bankers do not appear to be close to finding one,\" said Kit Juckes, currency strategist at Societe Generale. \"That uncertainty is weighing on the euro and I expect it to be stuck in a $1.40-$1.47 range.\" Deadlocked European policymakers appeared deadlocked on how private investors could be involved in some form of restructuring of Greek debt. The European Central Bank is opposed to German proposals for a bond swap, arguing that it would trigger market turmoil. And Bundesbank head Jens Weidmann in comments released at the weekend said he was against extending the maturities of Greek bonds held by the ECB in any \"soft\" restructuring. German and French banks were leaning towards contributing to a Greek rescue, even as it remained unclear how they could do so without triggering a default or credit default swap contracts. Investors also see less risk of repeated Eurozone rate hikes in the months ahead. Even as ECB President Jean-Claude Trichet signalled a rate hike is on the way in July, the ECB left inflation forecasts for 2012 little changed, prompting traders to slash expectations for higher policy rates. Downside risks As such, the euro\'s uncertain outlook saw implied volatilities rise with risk reversals also widening, suggesting more downside risks for the single currency. One-month implied vols were trading around 12.15 per cent, up from 11.05 at Friday\'s European open. The one-month 25-delta risk reversals were at around 2.00 in favour of euro puts compared to 1.75 Friday. The euro\'s woes have been compounded by a drop in global stocks that has prompted some market players to unwind carry trades funded with the US dollar, the yen and the Swiss franc. Forex analysts at Citigroup warned that investors appear overly optimistic that central banks would provide more support if stocks and other risky assets fell sharply. The Federal Reserve will have a high hurdle for more quantitative easing, fiscal policy is set to tighten in the US, and emerging market central banks are lifting rates just as many commodity and stock markets are already richly valued, Citi said. Safe haven \"This time the assumed policy response may be much more limited than in the last two years, and probably less effective,\" said Steven Englander, head of G10 FX strategy at Citi. The rush towards safe-haven assets boosted the Swiss franc and kept the dollar pinned near record lows hit last week. The dollar was last down 0.7 percent at 0.8374. \"The Swiss franc remains the global barometer for risk and the fresh Eurozone jitters have given renewed confidence to investors to push it higher,\" said Lena Komileva, head of G-10 currency strategy at Brown Brothers Harriman. The Swiss National Bank meets this week for a rate decision, and is unlikely to signal any risk of intervention to cap the franc\'s strength.

arabstoday
arabstoday

GMT 22:40 2017 Wednesday ,22 November

Bahrain Bourse daily trading performance

GMT 11:50 2017 Tuesday ,21 November

European stocks shrug off Germany's political woes

GMT 03:59 2017 Tuesday ,21 November

Weekly inflation decreases by 0.88%

GMT 23:50 2017 Monday ,20 November

Bahrain Bourse daily trading performance

GMT 14:54 2017 Sunday ,19 November

Bahrain Bourse daily trading performance

GMT 03:16 2017 Saturday ,18 November

Asian markets head for positive end to volatile week

GMT 11:57 2017 Friday ,17 November

US stocks boosted by solid Wal-Mart, Cisco earnings

GMT 06:51 2017 Friday ,17 November

Bahrain Bourse daily trading performance
Arab Today, arab today
Arab Today, arab today

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*

euro under pressure as greek debt saga continues euro under pressure as greek debt saga continues

 



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*

euro under pressure as greek debt saga continues euro under pressure as greek debt saga continues

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Leaders of Russia, Iran, Turkey meet

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
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