2010-06-29

Market Report - Afternoon– 29 June 2010

» EUR/USD slid under $1.2300 as interbank euro lending rates hit their highest in almost seven months. The single currency's failure to rise above $1.2400 and heavy selling in EUR/GBP & EUR/JPY added to the downward momentum.

» Banks must repay 442 billion euros to the European Central Bank on Thursday, leaving a potential liquidity shortfall in the financial system of over 100 billion euros.

» EUR/CHF hit a record lows and USD/CHF hit an eight-week low as Swiss National Bank board member Jean-Pierre Danthine was quoted as saying deflationary risks have disappeared and Swiss exports have proven to be robust despite a stronger currency.

» Asian stocks fell around 1.5%, dragging the MSCI Asia Pacific Index to a two-week low, on concern over the pace of China’s economic recovery. This would be driving the increase in risk aversion.

ForexCT Market Insights Report