Euro fell 188 points to 1.3680 from NY to early Europe - 20th October, Market Update

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by: fxsolutions
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Date: Thu, 27 Oct 2011 Time: 4:58 AM
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Chris Advincula, Market Analyst at FX Solutions (http://www.fxsolutions.com/), provides forex traders with an overview of forex activity around the euro on 20th October:

"The euro fell from the NY intraday high and resistance of 1.3870 to 1.3682 (-188 points or -1.35%) as the euro came under selling pressure with the general reversal of risk appetite and doubts over a positive outcome of the EU summit meeting on Oct 23. Sterling is 80 pips lower to 1.5700, Australian Dollar is 110 pips lower to 1.0155 while New Zealand dollar is 60 pips lower toward the European opening hours.

The yen is firm along with the dollar as investors flee to their relative safety. Euro-yen came off 90-pips from 105.90 to 105.00. Dollar Swiss edged 60-pips higher to 0.9080.

The EU meeting in Frankfurt yesterday failed to deliver an agreement between Germany and France. The ECB rejected using its balance sheet to increase the proposed 440 billion euro EFSF funds. The banks lobbied against a forced recapitalization and deeper writedowns on Greek debts.

Equity markets opened lower in Asia and commodities fell, led by a 5% fall of copper. NYMEX Nov Crude Oil dropped $2.23 to $86.11 per barrel.

Nikkei lost 0.9% to 8,692 at 11:00am in Tokyo. The broader Topix fell 0.8% to 745.51.

Thailand experienced the worst flood in 50 years. Many Japanese factories stationed in the country were forced to shut down operations or relocate.

Nikkei is -94.39 points to 8,678.15 (-1.08%)

Hang Seng is -354 points to 17,954.60 (-1.94%)

S&P ASX is -59.80 points to 4,153.90 (-1.42%)

The 30-day simple moving average fell from 1.3840 to 1.3710."

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