Currency Updates:
The Euro (EUR) saw any hope of revival dismissed as former Greek Prime Minister Papademos admitted to the fact that “risk of Greece leaving Euro is real”, “Preparations for Greece Euro exit are being considered” indicating that it could cost anywhere between 500 Billion to 1 Trillion, ensured the Euro plummeted from day highs above 1.2800 to trade just above 1.2650
The Japanese Yen (JPY) suffered on the back of Fitch move to downgrade its economy to A+ with a negative outlook. Such a move, added to recent trends, ensured the currency pair once again failed to break below 79.00.Further, markets flight to USD safety, in light of Greece conjecture, ensured the USDJPY pair managed to break back above the 80.00 mark. Markets will now look to the outcome of the 2 day BoJ meeting, although bias is doubtful that there will be any added measures to ease further.
The Sterling Pound (GBP) slid despite CPI numbers coming in on expectations. Although the EURGBP cross managed to trade above the 0.8100 figure, the Sterling Pound was largely reflective of a weaker Euro, and a rampant greenback, pushing the GBPUSD lower from levels near 1.5850 to lows of 1.5740
The Australian Dollar (AUD) managed to hold on to much of its previous day gains throughout the Asian session, as regional stock markets showed positive life. Yet sharp reversals on Papademos comments saw the AUD trade back to monthly lows of 0.9800 before breaking further in Asian trade Wednesday setting a new 5 month low of 0.9753
Gold (XAU) was subjective to selling interest in early Europe, as market looked to its previous night failure to break 1600 as a technically negative, taking out a key Fibonacci number of 1582 on the downside, setting a new weekly low of 1562. XAU continued its decline into Asian Wednesday trading toward 1556.00
