Euro remains under pressure

By @ibtimes on

The euro slipped against majors on debt woes persisting in markets on fears the contagion will spread to other countries and Ireland will not be able to trim its deficit or restructure its fragile banking system.

Yesterday, Fitch downgraded Ireland's credit rating by three notches to BBB+ from A+ on expected rise in the cost of serving debt and restructuring ailing lenders.

Also, while the Irish Parliament managed to pass a vote for the 6 billion euros budget they are facing pressure as opposition party said it will not vote for the 85 billion-euro aid package.

In China, trade data released today showed improvement, yet there are concerns China will raise interest rate and tighten monetary policy this weekend with the release of November's inflation data that is expected to rise to 4.7% on the annual basis.

The dollar index, which tracks the dollar movements against a basket of six currencies, rebounded from a low of 79.82 to a high of 80.19 compared with the day's opening price at 80.05 due the decline in treasury yields.

According to data released today, US trade deficit narrowed in October to $38.7 billion from the previous $44.0 billion and University of Michigan confidence rose to 74.2 in December above forecasts of 72.0.

Next week, the Fed may announce it will increase the stimulus beyond the $600 billion announced last month which may put the green currency under pressure.

Concerning the euro-dollar pair, it is showing some decline after recording a high of 1.3282 and a low of 1.3200, whereas the trading range for today is among the key support at 1.3120 and the key resistance at 1.3520.

Moving to the royal pair, it is showing slight incline where the pair is currently trading at 1.5784 after hitting resistance at 1.5860.

So far, the pair has recorded a high of 1.5861 and a low of 1.5745, while the trading range for today is among the key support at 1.5650 and the key resistance at 1.6000.

With regard to the dollar-yen pair, it inclined to reach a high of 83.95 yet still hovering around 83.70 critical level. The lowest point was recorded at 83.43 where the pair is currently trading at 83.93.

The trading range for today is among the key support at 82.80 and the key resistance at 85.95.

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