Wednesday, July 1, 2015

The euro fell as fears subside over Greece – lalibre.be

The euro remained lower against the dollar on Wednesday, following a reverse curve to that of the European stock markets, up sharply, apparently as a result of the same cautious optimism about the possibility of an agreement between Greece and its creditors.

By 2100 GMT (2300 in Paris), the European single currency was worth 1.1053 dollars, against 1.1139 dollars on Tuesday at around 2100 GMT.

The European currency fell against the Japanese currency to 136.12 yen against 136.38 yen late Tuesday.

The dollar gained ground against the Japanese currency to 123.15 yen against 122.44 yen late Tuesday.

“The euro fell against the dollar despite reports that Greek Prime Minister told European officials that he would accept (subject) the terms of the demands of creditors their help, “noted Omer Esiner among Commonwealth Exchange.

He said it was the result of the behavior of investors, who tend to buy European equities and sell euros when European prospects are good and vice versa.

“A key factor in the amazing strength of the euro, recently, could be linked to foreign investors hedging that buy and sell shares in the euro area. The explosion of hedged foreign currency equity funds could, at least in the short term, be an essential factor of the reverse correlation between the euro and the actions “of the eurozone, argued Mr. Esiner.

BNP Paribas, Vasily Serebryakov kept a very close speech noting that “what is good for Greece’s bad enough for the euro”, as the euro now has the function of a “store of value” .

In any case, it was mostly the caution that once again dominated as markets struggled to discern the scenario of a crisis for Greece, which has Tuesday night could not repay the 1.5 billion euros it owed the International Monetary Fund.

Greek Prime Minister Alexis Tsipras appeared more open to the demands of creditors, but its proposals were very freshly hosted by Germany.

In addition, he confirmed the holding of a referendum on Sunday on the demands of creditors, which it called to vote no, and finance ministers of the euro area ruled out any discussion of a new aid plan before knowing the result.

Simon Smith, an analyst at FxPro, “the relative stability of markets does not help the Greek government, which currently table the fact that the international repercussions of a Grexit + + (a contraction of “Greece” and “output” in English, a term used to refer to a country’s exit from the eurozone, Ed) “would like his creditors will not let a that happen.

In addition, the dollar benefited from good indicators, particularly in job creation in the private sector announced much stronger than expected by the ADP services company.

It is considered auspicious Thursday before the publication of the official monthly unemployment figures, and “this reinforces the likelihood that the Federal Reserve will raise the cost of credit in the coming months,” said Omer Esiner.

However, analysts at Societe Generale, “the Fed’s policy inspires skepticism enough for the rising dollar put of time to manifest.”

A rise in rates would make the dollar more profitable and therefore more attractive to investors.

By 2100 GMT, the British pound was little higher against the euro at 70.78 pence per euro and fell against the dollar at 1.5618 dollar for a book.

The Swiss franc fell against the euro at 1.0480 francs per euro, as against the dollar at 0.9482 francs to the dollar .

The Chinese currency finished at 6.2016 yuan to one dollar, against 6.2010 yuan yesterday.

The ounce of gold finished at 1,168 dollars at auction evening, against 1,171 dollars on Tuesday.

 Wednesday Course Tuesday Course ---------------- ------------- ----- 2100 GMT 2100 GMT 
 EUR / USD 1.1053 1.1139 EUR / JPY 136.12 136.38 EUR / CHF 1.0480 1.0414 EUR / GBP 0.7078 0 , 7089 USD / JPY 123.15 122.44 USD / CHF 0.9482 0.9349 GBP / USD 1.5618 1.5714 

bur-chr / jdy / Lys

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