Euro plummets on Greek referendum announcement
- The euro plummeted today on heightened risk aversion in the market. An announcement from Greece that the country will hold a referendum to approve a second bailout-plan surprised investors. Greek Prime Minister George Papandreou said that they believe in their citizens and want them to be a part of the decision. The euro slid after the announcement, on growing concerns about a no vote which may result in a Greek default. World equities fell and against the dollar, the single currency shed 2.9% falling as low as 1.3756 from 1.4170. Versus the Japanese yen, the euro fell to 107.45 from 111.60 erasing gains made after Japan stepped in the currency markets yesterday to tame the soaring yen. Eurozone Consumer Price Index showed a 3% gain in October and unemployment rate unexpectedly jumped to 10.2%.
- The US dollar edged higher against a basket of currencies yesterday as fears over the stability of the financial markets spurred demand for the safe haven currency. Versus the Swiss franc, the greenback rose to 0.8835 from 0.8567. Attention shifts to the ISM Manufacturing data expected later today.
- The Australian dollar declined today after the Reserve Bank of Australia cut interest rates by 25 basis points to 4.50% at the monetary policy meeting tomorrow. The central bank explained the move citing weaker growth in China, global economic uncertainty and soft inflation data. Versus the greenback, the Aussie slid to 1.0378 from 1.0566.
- Oil prices edged lower falling to 91.76 dollars a barrel from 93.50. Gold dropped to 1712.19 dollars an ounce today from 1723.98. Silver dropped to 34.17 dollars an ounce today from 34.70.
SHORT @ 1.3950
SHORT @ 79.00
SHORT @ 1.6100
SHORT @ 1.0560
SHORT @ 1728
SHORT @ 93.95
1data generated by Trading CentralTM, 2data obtained from easy-forex Inside ViewerTM
Gross Domestic Product in Q3
ISM Manufacturing in October
3at the time of writing
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