CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

EUR USD trades at fresh 12 year low

Article By: ,  Financial Analyst
March 10, 2015 10:05 AM

The Euro traded to a fresh 12 year low against the greenback in the Asian session that saw a broad-based dollar rally, which initially weakened the JPY beyond 122 as the AUD and NZD slumped to 0.7600 and 0.7260 respectively. The fresh catalyst seems to be more concerns in the EU and in particular Greece as the ECB started its €60 billion monthly asset purchase programme. European government bonds are being pushed lower as the German 10 Year Bund made a fresh 10 year low this morning. Greece has seen a deterioration in fortunes since Troika last visited 6 months ago, as banks have seen billions of deposits vanish as tax receipts have also sharply declined. Concerns remain that Greece could run out of funds within weeks as Eurogroup president Dijsselbloem encouraged Athens to stop wasting time and implement serious reforms.

The NZD came under isolated pressure in the midst of a dollar rally following headlines that NZX had halted trading on three dairy companies, along with dairy futures, on the back of threat to poison infant formula. New Zealand police held a press conference to announce that Federated Farmers and Fonterra had received anonymous letters in November that protested use of the 1080 poison in pest control, and claimed to poison infant formula by end of this month. However, details emerged that no contaminated products have been found, but the threat still exists. The New Zealand police clarified that they are treating the incident as blackmail and not as a terrorism threat.

The Chinese CPI data was largely ignored by the market despite coming in above the consensus forecast of 1% at 1.4% although PPI still pointed at deflation threats falling to its lowest level since 2009.

There are no major data releases today so I feel the market will be dominated by any comments from the Economic finance ministers meeting and the knock on effect these have on European Government bonds.

 

 

EUR/USD
Supports 1.0730-1.0590-1.0500 | Resistance 1.0990-1.1155-1.1245

 

 

USD/JPY
Supports  119.50-118.65-118.20 | Resistance 122.45-123.70-124.15

 

 

GBP/USD
Supports 1.5000-1.4950-1.4815 | Resistance 1.5250-1.5345-1.5460

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024