USD goes higher against counterparts
The uncertainty over the solution of the Greece debt issue by the European finance ministers, International Monetary Fund and the European Central Bank gave support to the safe haven US dollar. Markets are volatility head of news regarding the next trance of aid to Greece. The main party of Spain also lost favor in elections due to austerity measures that were unacceptable to the people. This is also being looked at by traders before they invest in the euro. Germany too is to release data on the German consumer climate. This is also being followed by traders.
Eurozone struggles to reach agreement on Greece debt
The finance ministers were to decide today on the issue of providing the next set of loan tranche to Greece to remove the difference over bailouts of Greece that is creating a sort of financial enmity between nations like Germany and the International Monetary Fund. The meeting was expected to be heated and lengthy like the previous encounter due to the continual denial of the countries like Germany to relieve Greece of some of its debt. The goal is to open doors for loans worth 31.5 billion euros or 40.2 billion dollars for the bailout program. Greece will get two additional installments raising the sum to 44 billion euros. Greek debt is now at 175 percent of its GDP and without any aid it would rise to 190 percent of the GDP next year.
Reversal seen in the Japanese yen
The Japanese yen rose 0.27% because of the weakening of investments in the euro. The bearishness was a result of the inability of European finance ministers, European central Bank, and the international Monetary Fund to release the funds of 44 billion euros that would help the ailing economy of Greece. The denial of countries like Germany to provide aid to Greece for recovery is causing hiccoughs in a speedy solution. The comparison of the dollar with the Japanese yen seems bearish in the near time. Support levels can be seen at and 80.50, 81.15 and 81.75, whereas resistance is at 82.90, 83.00 and 83.30.
Crude oil slumps a little
Crude oil fell below $88 a barrel on the New York Mercantile Exchange. While traders were eying the situation in the Middle East, Light sweet crude had risen 61 cents to the level $87.67. Home heating oil was lower by 1.39 cents to $3.0721 a gallon whilst blendstock gasoline lost 1.31 cents to $2.7073 a gallon. Natural gas was down by 1.42 cents to $3.892 per million thermal units. The low has been seen due to negative news from the Eurozone. This meant a hit in the demand for crude, which has led to investors to hold back their investments in commodities like crude oil. Therefore, crude oil has declined to its sessions low after it saw gains the last week due to uncertainty over supply.