Euro Plummets versus its Main Peers this Wednesday!

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US dollar swings between gains and losses against peers

The US dollar gained in value versus the euro in the Asian trading session on Monday.  1.2387 US dollars bought a euro at 7:18 AM London time. The British pound, too, fell against the greenback by 0.2% and traded at $1.5587.

The USD/JPY rate was at 78.37, with the yen gaining by 0.3%. The Australian dollar, too, continued its rally against the US dollar. The main reason for the Australian dollar’s rise has been the positive sentiment in the economy there. At 4:10 PM Sydney time, the Australian dollar traded at $1.0545. The see-saw in exchange rates is disconcerting for US dollar investors, who feel that global recessionary trends are making it extremely difficult to speculate currency movements. The US economy has also been performing in a sluggish manner. The much awaited round of monetary easing from the Federal Reserve is yet to happen.


Euro slides lower in value against greenback and yen

The euro slid lower in value against the US dollar and Japanese yen in the Asian trading session on Wednesday.  The EUR/USD trading rate at 7:18 AM London time was 1.2387, with the euro gaining by 0.1% against the US dollar. The EUR/JPY rate was at 97.07 yen, which was a fall of 0.4% for the euro.

Greece’s sovereign rating was further lowered from stable to negative by a prominent agency, and this had a negative impact on the euro. The same agency also expressed concerns over Spain’s banks. There was even speculation that industrial production in Germany has dropped, which raised concerns that Europe’s debt crisis is having a negative impact on Germany.


Yen gains versus US dollar and euro

The yen gained versus the euro and US dollar in the Asian trading session on Wednesday. At 7:18 AM London time, 97.07 yen fetched 1 euro, which meant that the euro had fallen by 0.4% against the yen. After a decline of 0.5% against the US dollar late on Tuesday, the yen recovered and gained by 0.3% to trade at 78.37 yen to a US dollar.

Almost all economists feel that the Bank of Japan will leave its asset purchase fund unchanged. They also feel that the benchmark rate target will be kept between 0% and 0.1%. It remains to be seen as to what the Bank of Japan actually comes up with after its meeting.

Crude oil

Crude oil prices slide as investors sell contracts

Oil prices slid early on Wednesday as investors were in a mood to sell their oil contracts, amid signs of lesser demand from the US. Crude oil consumption in the US was 15.9 million barrels last week, a drop of 4%. Even gasoline usage in the US was at its lowest level since February 2012. Oil futures consequently fell by about 0.6%. Crude oil prices could rise if there are supply gaps or spurts in demand from emerging economies such as China and India.

Crude oil for September delivery on the New York Mercantile Exchange was trading lower at $93.16 per barrel at 2:50 PM Sydney time. In London, Brent crude oil for September settlement was trading at $111.35 per barrel, down 65 cents. 

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