The euro is trading near three week lows versus the dollar after suffering its worst two days of selling since last May as markets react to the surprising news that Greece is to hold a referendum on its latest bail out package. Global stocks also fell sharply on the announcement, which has seen risk aversion spike higher once again on fears over what lies ahead for the euro zone region. Although some in his own party disagree with what he is doing, PM Papandreou has won the backing of his …

With market sentiment on a positive wave after the details of Europe’s debt deal, the euro hit seven month highs of $1.4247 versus the dollar in late afternoon trading yesterday. It came off these levels overnight as investors took a breather after a huge relief rally but further short term gains could be seen. While the deal, which includes an agreement that private investors would accept 50% losses on their Greek debt holdings, leveraging of the EU bailout fund and re-capitalisation of its banks, is unlikely to solve all Europe’s …

The euro hit 7-week highs in overnight trade, breaking through the $1.40 level versus the dollar as markets reacted positively to the news of a debt deal in Europe. Significant gains, however, could be difficult given that markets had already pushed the euro higher on hopes of a resolution. Little is known as yet about the finer details but what we do know is that there will be a 50% write down for private bondholders on their Greek debt, European banks are to be recapitalised to the tune of €110billion …

The euro traded at six week highs of $1.3956 versus the dollar yesterday, with risk sentiment continuing to be underpinned by hopes of a comprehensive debt deal from Europe by Wednesday’s Summit. It eased off its highs overnight but remains reasonably well supported as markets await further details from EU leaders. The news of a weaker than expected eurozone flash PMI report for October did not seem to have a major impact on the single currency, though the data have intensified fears that the region is heading back into recession, …

UK Consumer Price Index data was released today, showing higher-than-expected inflation numbers across the board for the month of September. CPI rose 0.6% on the month versus the expected 0.4%, the same rise as in August. We also saw a elevation on the annual front, with inflation rising 5.2% since this time last year, compared to the predicted 4.9% and the previous 4.5%. Moreover, the price of retail goods climbed 0.8% last month versus the forecasted 0.5%, and the yearly data showed a rise of 5.6% instead of the …

After reaching highs of $1.3833 versus the dollar yesterday, the euro dipped in early morning trade but remains well supported by the current wave of positive sentiment towards riskier assets. Despite its early morning consolidation, further gains could be seen near term, with the overnight news of a better than expected Australian jobs report for September also boosting sentiment. European bank stocks rallied yesterday as investors hope that Europe was moving close to a new round of recapitalizations. EU Commission President Jose Manuel Barroso told the EU parliament that the …