Forex News

EUR USD (1.4060) Short-term traders had it their way yesterday, as their various selling arguments accompanied the euro on a brief dip below $1.40.

Accelerated Greek privatisations signal progress on approval of next aid tranche EFSM bond issue to add to EUR support Higher than expected Norwegian GDP to keep NOK well bid

Over the last 24 hours the outlook for risk has been mixed. The EUR has rebounded off daily cloud support against USD, GBP and SEK.

G10 Currencies EUR-USD: Having traded below the 1.40 mark for the first time since Mid-March again, it looks as if EUR-USD has recovered slightly this morning. The news on the debt crisis is however little suited to support the euro.

Intro from Allison Nathan (GIR) : Please note we have just published a new Commodity Watch: Turning more bullish as supply-shock concerns fade. Although near-term downside risk remains as markets adapt to a slower growth environment with supply-shock concerns fading, we now believe that the risk/reward once again favours being long commodities.

The Greek FinMin stated that the government would have to stop payments, salaries and pensions should Greece not receive its latest tranche from the IMF.

Today’s highlights: EUR/USD: Plunge through key 1.4038/20 negates basing effort and targets 1.3655 into June GBP/USD: Push through 2011 trend support line leaves risk this week to test the 200-DMA/chart support, 1.5937/36 AUD/USD: New correction low back from 1.0718 hurdle, but holding better 55-DMA/price support, 1.0466/43. We look for a defence of this area into […]

– NZD leads modest bounce vs USD, Asian equities mixed – German Ifo likely to add pressure on the euro – Our short term model estimates EURUSD at about 1.41

GBP/USD has started to erode its one year uptrend at 1.6096/78. It has held its initial test f its 50% retracement of the move higher seen this year.

Contagion in euro zone spreads highlighted in this report yesterday and in the Global Technical Trends, Euro area tilting at windmills, 23 May 2011, has triggered broader risk reduction and a persistent USD bid.

Stutchbury: http://www.theaustralian.com.au/national-affairs/commentary/fix-this-broken-global-system/story-e6frgd0x-1226061411823 This and the renewed euro-zone financial instability means the RBA almost certainly will sit pat at its June 7 board meeting.