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EUR/USD update (21st June 2012, 06:00)

In US trade, the euro managed to push modestly higher despite a lacklustre FOMC meeting outcome, which saw the Fed extend its ‘Operation Twist’ programme, but refrain from any further quantitative easing. 

While the resulting firmer USD would normally have meant a weaker euro, the shared currency was able to push higher on the back of some positive euro-centric news.  New Democracy's Samaras was sworn in as the new Prime Minister of Greece after successfully forming a coalition with PASOK and the Democratic Left parties, ending fears of a protracted negotiation stalemate that followed the original election.  Also, Spanish yields dropped across the curve with the 10-year yield falling by 30 basis points, a welcome breather for the government as it has a bond auction scheduled later today, while the ECB's Coeure commented that the ECB is likely to back proposals for the EFSF to buy sovereign bonds in the secondary markets. 

On the issue of another LTRO, he noted that it would probably be warranted only in cases of widespread liquidity challenges and not to resolve local bank difficulties. Having ended yesterday’s Australian session around the 1.2685 level, the euro surged to a high of 1.2743 before closing US trade at 1.2707. Upon resuming for Asian trade, the euro has drifted lower to be currently in the mid-1.2670s. 
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EUR/USD update (21st June 2012, 06:00)

In US trade, the euro managed to push modestly higher despite a lacklustre FOMC meeting outcome, which saw the Fed extend its ‘Operation Twist’ programme, but refrain from any further quantitative easing. 

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