EURUSD R 2: 1.2725 R 1: 1.2450 CURRENT: 1.2335 S 1: 1.2000 S 2: 1.1800
USDJPY R 2: 93.70 R 1: 92.80 CURRENT: 92.50 S 1: 90.85 S 2: 89.00
GBPUSD R 2: 1.4725 R 1: 1.4550 CURRENT: 1.4439 S 1: 1.4110 S 2: 1.3830
AUDUSD R 2: 0.9275 R 1: 0.9085 CURRENT: 0.8724 S 1: 0.8710 S 2: 0.8575
The EURUSD weakened against 14 of its 16 major counterparts, falling to 1.2320 after it fell as much as 1% to 1.2235, the lowest level since April 18, 2006 while EURJPY weakened to 113.78 after it reached 112.46, the least since May 6 ahead of a German report forecast to show confidence among investors deteriorated this month. The EURUSD also weakened as European finance ministers sought to ease concerns that spending cuts to combat the region's debt crisis won't cause a double dip in the economy. German investor confidence probably plunged to 47 in May from 53 the previous month, after Europe's debt crisis stoked concern about the EUR's future following budget cuts from Greece to Portugal.Greece will receive 14.5 billion EUR in the first installment of emergency EU loans today. The funds will arrive one day before 8.5 billion EUR of bonds come due and will cover the country's financing needs for May and June. The IMF made its first contribution of 5.5 billion EUR last week. This may lead to temporary short- covering in the EUR.
The GBPUSD fell to a more than 13 month low after UK Prime Minister David Cameron said the government discovered very bad spending decisions by the previous administration. Chancellor George Osborne said he will give details of an emergency budget on June 22 while giving details of budget cuts of 6 Billion GBP by May 24. The GBPUSD fell 0.4% to 1.4439 after reaching 1.4252, the lowest level since March 31, 2009. The UK's inflation rate remained above the BOE's upper limit of 3% in the year to April. Consumer prices are forecast to climb by 3.5% from a year earlier, according to data to be released today.
The AUDUSD declined 0.5% to 0.8716 from yesterday when it touched 0.8686, the least since Feb. 9 after the RBA said Australia's monetary policy is well placed after six increases in the benchmark interest rate in seven meetings, as it weighs Europe's debt crisis against inflation risks. The minutes also added that increases in interest rates to date had been timely with signs that the moves were beginning to affect behavior of consumers and home buyers. This could imply that the interest rates could be on hold next month which could allow RBA more time to assess the impact of the rate hikes already delivered. There are speculations that RBA will keep borrowing costs unchanged in coming months as the central bank gauges whether a $1 trillion package of measures organized by the EU/IMF helps stabilize global financial markets.