| Technical Ranges
CAD, USD, EUR, GBP & JPY
|
|
USD/CAD
Support: 0.9803
Resistance: 0.9896
CAD/JPY
Support: 81.60
Resistance: 82.45
EUR/CAD
Support: 1.4034 Resistance: 1.4160
EUR/USD
Support: 1.4263 Resistance: 1.4343
GBP/USD
Support: 1.5939 Resistance: 1.6042
Want us to monitor the market 24 hours for your target rate? Learn more about
Overnight Orders
Currency Commentary
EUR, USD, CAD, GBP , JPY
EUR:
The Euro rebound from 1.4255 support area at European session opening has been capped right at 1.4330 -Monday's high-, and the pair has retraced daily gains, as stock markets turned lower, to reach fresh day lows at 1.4245.
USD: The USD is much weaker today...the USD/CAD dipped from 0.9883 to 0.9840 lvls...currently @ 0.9843. Markets are on a positive swing due to investors believing that later this week Greece will resolve their debt issues.
The USD/CAD didn't break into mid 0.9900 territory..but if the news out of Greece is not positive or we have any weak U.S. data this week..we may see 0.9900 once again. This is all dependant on where the market closes..either in the mid or higher 0.9800 lvls.
Later this morning key U.S. data, Consumer confidence...if positive..expect further weakeness for the USD...the reverse if negative.
Due tomorrow.....Pending home sales data.
CAD: Today a "rosier" picture for the equity and commodity markets..oil on a rise...all very positive for the Loonie. Can this bearish trend continue for the rest of the day..or will we see a pullback...either back into higher 0.9800 lvls??
The pair needs to break support @ 0.9801 to head further south..the head further north...needs to break resistance @ 0.9896.
Due tomorrow...key Canadian data due CPI.
Our clients are placing orders similar to yesterday to buy @ mid 0.9800 and sellers @ higher 0.9800.
Today's expected range ...possibly lower 0.9800 to higher 0.9800 lvls.
GBP: The Pound recovery attempt from yesterday's low at 1.5915 has been halted right above 1.6000 psychological level, and the Pound, weighed by weak UK GDP and current account figures, has given away gains, to retest 1.5915 support which, so far, remains intact.
JPY : The Dollar rebound from 80.15 low on Friday extended yesterday to test the top of the last 3 weeks trading rang at 81.00 area, where the pair failed, once again,before easing on Asian session and find support at 80.70 ahead of the European session opening.
Want to lock in an exchange rate for the future? Learn more about
Forward Contracts
Follow our "tweets" and get up-to-date currency movements daily on Twitter @ http://twitter.com/taheriexchange
|
" World stocks give up gains "....
" The question that is in the markets mind is ' Will an EU debt rollover plan be enough to salvage Greece? ' ".....
|
|
World stocks gave up early gains on Tuesday to hover around flat while the euro also fell ahead of crucial votes in the Greek parliament over austerity measures needed to stave off a debt default.
Wall Street looked set for a weak open, with stock futures pointing downwards and investors reluctant to take major bets before the parliamentary votes on Wednesday and Thursday.
The austerity measures are required in order for Athens to receive more European Union and International Monetary Fund aid but popular opposition to austerity is strong, exemplified by a two-day general strike launched on Tuesday.
While the market had earlier received some support from France’s agreement with its banks to roll over some Greek debt and talk of a contingency plan if the austerity measures are not approved, the positive momentum soon dissipated.
Market players pointed to further problems down the line for the euro zone periphery.
“The question that is in the markets’ mind is ’Will an EU debt rollover plan be enough to salvage Greece?’ The focus will turn to data and if there are no signs of growth, the political will to do more on Greece will be very thin,” said Neal Mellor, currency strategist at Bank of New York Mellon. World shares as measured by MSCI were flat as was the FTSEurofirst 300 index of top European shares. The latter was also hit by a 15% slump in telecom giant Cable & Wireless CWP.L after a profit warning.
Greek shares however rose 1.5% though they stayed just off 14-year lows hit recently.
Japan’s Nikkeihad earlier closed up three-quarters of a%, lifted by the French plan which would see banks reinvesting 70% of proceeds when Greek bonds fall due in 2011-14 and cash out the rest.
But European Central Bank Executive Member Juergen Stark was cited in media reports as saying that Greece will receive further financial help only if it sticks to implementing austerity measures and that there were no alternate plans if the reforms were not approved.
In the United States, S&P500 futures SPc1 were down 0.2% while Nasdaq and the Dow Jones slipped 0.1% each. Wall Street had risen on Monday after three loss-making sessions.
EURO FIRMER
The euro also gave up its early modest gains and traded down 0.1% at $1.4272, off the day’s high of $1.4330 struck in early Asian trading.
The cost of insuring Greek debt against default rose. A parliamentary nod to the austerity proposals could give the euro a short-term boost, but if the measures are rejected, the euro could fall past its key psychological support level of $1.40, said Tom Levinson, currency strategist at ING.
“The alternative is the unthinkable. Greece’s government would fall, with the wider implication that the euro zone debt crisis takes a major lurch worse, i.e. towards a Greek default,” Levinson added.
Meanwhile, sterling fell to a 13-month low against a currency basket GBP, dragged lower by weakness in the pound versus the euro and dismal UK data which backed expectations that interest rates will remain low this year. On debt markets, German and U.S. bonds rose with Treasury futures rebounding from a sell-off in the previous session.
The Bund future was up 3 ticks at 126.93 after dipping in and out of negative territory in early trade and after the previous session’s 55 ticks sell-off.
“Tomorrow is going to be a decisive day. If they approve the austerity measures, then we have a chance that the market could stabilise,” said Klaus Wiener, chief economist at Generali Investments, which manages 330 billion euros ($468 billion).
“If not, we will have turmoil. The core yields will fall even more, peripheral spreads will widen even more and equities will lose ground.”
Article provided via the Financial Post
http://business.financialpost.com/2011/06/28/world-stocks-rise-on-greek-hopes/
" Greece woes may eclipse Lehman: Ackermann "..
" we see the first signs of a stiffening in the money market "
Deutsche Bank’s CEO described the situation in Greece as critical and warned contagion to other eurozone members could lead to a crisis bigger than the one sparked by the collapse of Lehman Brothers. Governments across the single currency bloc are pushing the banks, pension funds and insurance firms that hold Greek sovereign debt to play a role in a second rescue package for the heavily indebted eurozone nation.
Josef Ackermann cautioned against any steps that could spread the crisis to other vulnerable countries in the 12-year-old currency bloc.
“If it is Greece alone, that’s already big. But if other countries are drawn in through contagion, it could be bigger than Lehman,” the Deutsche Bank chief said at a Reuters banking event on Monday.
The Swiss banker, who is also chairman of the Institute of International Finance, an international bank lobbying group set up to deal with international debt crisis, cautioned politicians against rushing a deal with the private sector.
European leaders have said they want precise figures on private creditor involvement by a July 3 meeting of eurozone finance ministers.
“Political leaders expect a solution by the end of the week, but we should not rush it,” Ackermann said. “It is important to have a good solution. The issues are complex and need to be discussed.”
At issue is how to share the burden of a new 110 billion euro (US$155.8 billion) bailout for Greece being readied by euro zone politicians.
Athens also desperately needs to secure a 12 billion euro EU/IMF lifeline from its first rescue by next month to avoid an immediate default.
While many economists believe some form of debt restructuring is inevitable, European banks are eager to avoid a disorderly process that could trigger a Lehman-style meltdown of inter-bank lending markets and undermine other euro zone debt.
“We see the first signs of a stiffening of the money market,” Ackermann said.
Ackermann said the lack of transparency on who holds credit default swaps (CDS) on Greek sovereign debt — instruments that protect investors against a default — prevented more radical action, such as a haircut on Greek debt.
The prices of CDS move depending on perceptions about a borrower’s creditworthiness, and the prospect of a forced or voluntary restructuring.
“We don’t know whether these are in the hands of only a few players, which could then end up in trouble,” Ackermann said.
Chancellor Angela Merkel, who faces anger at home over a series of taxpayer funded bailouts for Greece, Ireland and Portugal, has promised skeptical parliamentarians that she will get the private sector involved in the latest rescue for Athens.
Banks have said they are willing to make a contribution, but have insisted it must happen on a voluntary basis, and signalled further incentives are needed.
Ackermann said investors were not prepared to “throw good money after bad,” but made clear the private sector was prepared to play its part.
“It is better for us to have some bleeding than for us to have a complete meltdown,” Ackermann told Reuters Insider Television in an interview after the conference.
Before investors give up hope on Greece, the country must given a chance to boost tax collection and sell privatized assets, Ackermann said.
“Imbalances that have been built up over 20 years cannot be fixed in a matter of months,” he told Reuters.
Article provided via the Financial Post
http://business.financialpost.com/2011/06/28/greek-woes-may-eclipse-lehman-ackermann/
Want to manage currency risk and increase revenue? Learn more about Risk Management
|
|
This email contains confidential information, is intended only for the named recipient and is privileged. Distributing or copying this email without express consent of Taheri Exchange (TE) is prohibited. If you are not the named recipient, notify us immediately and permanently destroy this email and all copies. Email is not private, secure, or reliable. TE is not liable for any errors or omissions in the content or transmission of this email. The information, opinions, estimates, projections and other materials contained herein are provided as of the date hereof and are subject to change without notice. Some of the information, opinions, estimates, projections and other materials contained herein have been obtained from numerous sources, and, notwithstanding TE. TE makes efforts to ensure that the contents thereof have been compiled from sources believed to be reliable and to contain information and opinions which are accurate. TE has not independently verified and makes no representation or warranty, express or implied, in respect thereof and takes no responsibility for any errors and omissions which may be contained therein. TE shall not be liable for any loss arising from any use of or reliance on the information, opinions, estimates, projections and other materials contained herein whether relied upon by the recipient or user or any other third party (including, without limitation, any customer of the recipient or user). The information, opinions, estimates, projections and other materials contained herein shall not be considered as investment advice or as a recommendation to enter into any transaction. TE, its affiliates, and/or their respective shareholders, directors, officers and/or employees may from time to time have long or short positions in any products.
unscribe/subscribe to: rick@taheriexchange.com
5775 Yonge Street
Toronto, ON Canada
M2M 4J1
T: 416-488-8822
F: 416-488-4022
T: 1-888-712-999
| | |
| Main USD/CAD data today: |
|
1. USD - Consumer confidence data.
2. CAD - No relevant data.
|
|
| Customized Service. |
| Taheri understands your business, and can tailor foreign exchange services that satisfy your unique needs |
| |
