Market Overview

ForexLive North American wrap: the stalemate continues in Greece

Greek political parties to meet with President again tomorrow
Greek President says banks could collapse on deposit outflows
Periphery bonds and CDS hit hard
Oil hits 2012 low of $93.65
Portugal growth estimates lowered
Greek Treasury running dry
French bill sales as expected
ECB buys no bonds for ninth week
US 10-year yields hit lowest since Oct
EU's Barroso opens door to Greek exit
SNB's Jordan: CHF still overvalued
California deficit 70% larger than projected in January

Typical recent US session where risk trades are hit in the early going and then mount a modest comeback before slumping into the stock market close. EUR/USD broke below stops at 1.2855 in early trading and touched 1.2825 at the lows. A modest rebound above intraday buy stops at 1.2850 ran to 1.2857 but slumped to 1.2834 later.

USD/JPY hit a 3-day low of 79.68 from 80.19 midway through Europe as US T-note yields hit a 6-month low. Traders suspected the move might be disorderly enough to justify Japanese MOF intervention and got out of the way, leading to a rebound to 79.86.

Cable bucked the trend, partly due to EUR/GBP selling, and jumped to 1.6120 from 1.6060. ECB fixing demand was a likely driver.

USD/CAD was resilient at the top of the range, touching 1.0054 but corporate offers capped the move. AUD/USD will close the day around 0.9967 -- well-below parity.

The better action was outside of FX as oil and periphery bonds were trounced. It's only a matter of time before the volatility returns to currencies.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets

 

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