U.S. Dollar / Japanese Yen 80.36-40 80.46-80.13 +0.12%EUR / USD 1.4326-29 -0.22% 1.4376-1.4323
Australian dollar / US dollar 1.0803-1.0743 1.0770-73 -0.30%
British pound / dollar 1.6420-1.6381 1.6398-01 -0.01%
Dollar / Swiss Franc 0.8738-43 0.8743-0.8705 +0.30%
/ Quotations are given at 04.50 am GMT /
May 10. Euro is trading at a decreasing against the major currencies against the backdrop of the fact that the debt problems of European countries to strengthen investors' concerns.
"Concerns about the euro due to the pressure experienced by peripheral countries / euro / and the market begins to show greater concern than ever before," - said Stephen Inglender, head of currency strategy more than a dozen Citigroup in New York.
Investors who bet on the euro, can lose a lot. The data on speculative positions in the foreign exchange market as of May 3, showed that investors have that put on the euro, owned net position on the euro versus the dollar volume of 18.4 billion dollars. Just as the currency traders have recently cut their dollar positions against the background of questions concerning the U.S. debt and the intention to cut costs, so now the same questions become more urgent with regard to the eurozone.
"We have a lot more long positions on the euro, than in the early years and losses will be greater if the investors that put on the euro, will be wrong about the economic situation in the euro area, adds Inglender.
The British pound rose against the Swiss franc in early Asian session on Tuesday against the backdrop of positive data on retail sales and UK housing market. Technical charts indicate that the growth of the pound may gain traction and a couple of pound / franc strengthened to 1.4511 and possibly up to 1.4598 in the coming days.
The British Retail Consortium / British Retail Consortium, BRC / reported Tuesday that retail sales in the UK in April rose at the fastest pace in five years. It reported a comparable retail sales rose 5.2% in April against the backdrop of the fact that Easter, the royal wedding and warm weather gave retailers a much-needed momentum after a failed March.
Meanwhile, according to the Royal Institution of Chartered Surveyors / RICS /, activity in the UK housing market rose slightly in April. The index of housing prices in the UK, which is determined by subtracting the percentage of respondents reported an increase in housing prices in the last three months, the proportion of those who reported falls in April rose to -21 vs. -23 in March.
