Currency Updates:
The Euro (EUR) spiraled to new multi-month lows as Reuters reports circulated that the “Euro group were asked to prepare a Greek exit contingency plan”. Stock markets were sent in to a free fall, dragging the Eurodollar along for the ride to trade at its lowest level since July 2011. The single currency managed to fall from levels near 1.2690 to trade at 1.2545
The Japanese Yen (JPY) rallied across all majors, as risk-off markets pushed the USDJPY down to levels near 79.20 having traded above 80 earlier in the Asian session. The hardest hit was the EURJPY, falling from 100.85 to 99.55 shortly after the Reuters reports circulated of contingency plans being devised for a Greek exit.
The Sterling Pound (GBP) was further compounded as a weak UK Retail Sales number (-2.3%) added to risk selling pushing the GBPUSD cross down. The Sterling Pound traded at fresh 3 month lows of 1.5667.
The Australian Dollar (AUD) naturally eased in light of risk appetite being off. The AUD fell to fresh 5 month lows, briefly trading below 0.9700. Focus now shifts to HSBC flash PMI release for further indication on AUD momentum.
Gold (XAU) whipped about trading just shy of last week’s 1527 base to a level of 1533, before talk of possible QE3 out of the US managed to push the precious metal back near 1558.
