Forex traders eye Euro Zone debt auctions due this week
The Euro remained weak but was capped to the downside at 1.2873 against the USD. Friday’s lower than-expected US Payrolls kept Forex traders hesitant of pushing the USD higher. GBP was supported against the weaker single currency but lower against the USD – analysts foresee a rate hike in the coming months. The Swissie finds renewed support on the back of prevailing Euro concerns.
EUR/USD trading range bound
EUR/USD trading was relatively range bound keeping to the range of 1.2873-1.2939 up to the time of writing. The Euro is at four month lows against the US Dollar as concerns over Portugal’s ability to meet its finance requirements later on this week remain. This week even Spain and Italy are due to tap the debt markets. The Euro remains weak trading below its 200-day moving average at around 1.3073. Asian reserve diversification and China’s remarks in support of European debt likely kept the single currency buoyed.
Even the USD seemed hesitant of new highs as Friday’s payrolls came largely short of expectations, despite they still registered growth.
The British Pound gains against a weakened Euro, despite a fall in house prices
The GBP gained ground against the weakened Euro after attempting highs of 0.8339 today. It may not only be due to the weaker Euro, some analysts are expecting BoE to give in to inflation pressures and raise interest rates in the coming months.
Data released earlier this morning showed a fall in UK house prices. The Halifax House prices index registered a loss of 1.3 percent against an expected 0.4 percent decrease and a previous 0.1 percent decrease.
The GBP was lower against the USD. (Read TraderTip GBP/USD analysis for more information)
The Swiss Franc finds renewed support
The Swissie was higher against most of the major counterparts, as investors concerned about the European debt problems, preferred to seek safe-haven currencies.
This article has been prepared by Rudolf Muscat, Senior Trader at RTFX Ltd.