The EUR fell to a 16-month low of $1.2666 against the USD and a fresh 12-year low of Y97.280 against the JPY amid growing concerns over the ability of European leaders to contain Europe’s sovereign-debt crisis.
Investors were spooked by a Reuters reported Sunday, citing an interview given by Czech central bank governor Miroslav Singer to Czech daily Hospodarske Noviny, in which Singer said that Greece should leave the eurozone and devalue its new currency unless Europe is willing to provide massive funding for the indebted country.
The EUR was at $1.2686 against the USD, from $1.2716 late Friday in New York, and at Y97.61 against the JPY, from Y97.92. The USD was at Y76.94, from Y76.96.
The AUD was lower after Australia’s November retail sales came in nearly unchanged on-month compared with a 0.3% rise tipped by economists. The AUD was recently at US$1.0165 from US$1.0180 before the data. AUD/NZD cross also edges lower as Aussie is the worst performer among majors this morning while the kiwi is little changed. Traders, however, note client interest in the AUD/NZD cross at current low levels, pair now at NZD1.3031 after hitting a low at NZD1.3024 earlier.
GBP has traded above Friday’s 1.5376 low due to cross-buying of GBP vs EUR, initial consolidation is now seen but 1.5466/70 likely to cap recovery, yield resumption of recent fall from 1.6167 (Oct) to 1.5340/50, though key support at 1.5270 should hold. Only above 1.5470 may risk gains toward 1.5526.
Spot Gold was at $1,609.00 per troy ounce, down $7.60 from its New York settlement on Friday. February Nymex Crude Oil futures were 50 cents lower at $101.06 per barrel on Globex.
EasyForexNews Research Team