Euro Demand Higher Despite the Woes of the Eurozone

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Euro Demand Higher Despite the Woes of the Eurozone

Dollar

The dollar has been one of the weakest currencies this Thursday, as traders have decided to sell havens. There is a degree of risk appetite which is exclusive to the forex market this morning. The GBP/USD pair has risen 0.07 percent to $1.5852. The AUD/USD has climbed 0.06 percent to the $1.0382 level. The USD/CHF is lower by 0.02 percent at 0.9449 Swiss francs. The weaker dollar comes on the ongoing budget debate in Washington and on the news that the most recent meeting of the Fed pointed to policymakers favoring more stimulus.

Euro

There is more demand for the European single currency this morning, as traders feel that the euro has been undervalued to some extent as of late. The EUR/USD pair has advanced this morning by 0.04 percent to $1.2741. One of the reasons why the EUR is so bullish is on the news that the austerity package for the Greek economy is set to get approved by key European officials.

Yen

The USD/JPY pair is lower today by 0.04 percent at 80.21 yen. The demand for the yen is actually down in recent trading, as traders have sold safe-haven currencies. The view is that as the opposition party which favors more stimulus is likely to win in Japan, so traders have priced into the market that further losses for the JPY may be on the cards.

 

Stocks

There was a stock market slump in Europe yesterday on industrial production sliding to its lowest level in more than three years. The Stoxx Europe 600 Index dived 0.9 percent to 268.14. Germany’s DAX Index slipped 0.9 percent. The U.K.’s FTSE 100 lost 1.1 percent. France’s CAC 40 fell 0.9 percent. J Sainsbury Plc. tumbled 2.4 percent to 338.8 pence. Vivendi climbed 4.7 percent to 15.69 euros. Other leading stocks also slumped during yesterday’s trading session.

 

Crude Oil

Oil prices surged on Wednesday by 1.1 percent, but are slightly lower this morning by 0.09 percent at $86.67. Traders have decided to ditch the crude oil binary option this morning, as the demand for commodities as a whole is lower. The losses come on stockpiles climbing in the U.S. last week. The tension in the Middle East helped boost oil prices during Wednesday’s trading session. In addition, the energy has been undervalued recently, so the gains we saw yesterday are very much understandable. There is not so much risk appetite today, as traders are sitting on the sidelines to some extent when it comes to oil. Positive data today could help increase prices.