Concerns about the pace of recovery in the global economy, as well as sovereign associated risks in the US and the euro zone, are overshadowing forex markets with safe haven currencies like the Swiss franc and the yen benefiting as a result. The passing of the US debt deal has done little to ease concerns given that it fails to address longer term problems. Fitch Ratings agency yesterday called the deal “a step in the right direction,” but cautioned that the government still has more work to do to maintain …

A weak round of data from the US and Europe yesterday has hit market sentiment, with July’s disappointing manufacturing ISM and PMI surveys underlining concerns about recovery in the global economy. The news of a debt deal in the US offered some support to the dollar versus the euro as did the spike in risk aversion. However, upside is seen as limited given that there are still many fiscal challenges that the US has to face, including the prospect of a debt downgrade. Meanwhile, speculation that Japan could carry out …

The euro has further reversed recent gains versus the dollar and sterling, while also falling back against the yen and Swiss franc as eurozone sovereign debt issues once again undermine sentiment. Markets reacted negatively to the overnight announcement from Moody’s that it was placing Spain’s AA2 sovereign rating on review for a possible downgrade on the back of increased vulnerability of its government finances and the risk of a sustained rise in funding costs. A lacklustre Italian bond auction yesterday is also weighing on the euro.
The single currency’s downside, …

The euro has fallen back versus the dollar and other majors, giving up some of its recent gains, as euro zone sovereign associated risks have come to the fore once again. Weighing on euro sentiment were contrasting statements by euro zone leaders, highlighting that last week’s deal to rescue Greece has far from solved all the problems. The Greek Prime Minister referred to the country’s new deal as “in essence tantamount to introducing a European bond”, which could well cause concern amongst critics of euro zone bailouts in Germany and …

Building on gains seen going into the weekend, the euro pushed to three week highs versus the dollar in early morning trade. As well as positive reaction to last week’s EU deal, the single currency is also benefiting from a round of general dollar selling on the back of the impasse in the US debt talks. Taking out a number of key resistance levels along the way to highs of $1.4510, the euro is expected to continue to find support near term.
Concerns about the US debt problem are also weighing …

While risk aversion remains very much to the fore, forex markets are somewhat steadier. Indeed, the euro, is off its weekend record low against the Swiss franc which, along with the yen, is the safe haven currency of choice. The euro also gained slightly against the dollar in yesterday’s trade. Even so, the single currency continues to struggle for support, with markets remaining very jittery about the eurozone debt situation as they await Thursday’s eurozone leaders’ summit. These concerns were reflected yesterday in a sharp rise in Italian and Spanish …