AUDUSD: The Australian dollar climbed toward its strongest levels since mid-September Thursday as markets welcomed news from a European leaders summit aimed at resolving the Greek debt crisis and bolstering euro zone banks.
After marathon talks, French President Nicolas Sarkozy said that a deal had been struck with private banks on a “voluntary” 50% reduction of Greece’s debt. The firepower of the European Financial Stability Facility, the euro zone’s bailout vehicle, will also be ramped up.
We expect a range for today in AUDUSD rate of 1.0610 to 1.07500 (We expect another sell off from the pair at level 1.0750)
EURUSD: In an effort to prevent Greece’s crisis from engulfing other countries in the bloc, euro zone leaders said they were pursuing two avenues to beef up the European Financial Stability Facility, their bailout fund. But they didn’t spell out how much money the fund would have at its disposal and mentioned the prospect of luring private and public investors from outside the euro zone, without firm commitments
Growing increasingly frustrated in recent months at what it believed to be too sluggish and tame a response. U.S. officials had warned that Europe’s debt crisis poses “very serious downside risks” to the U.S. economy, both through trade and the financial system. International Monetary Fund economists had warned failure of Europe to solve their crisis could spark a global recession and another financial meltdown around the world.
We expect a range for today in EURUSD rate of 1.4090 to 1.4220 (We avoid trading the pair today)
USDJPY: The yen hit a record high against the dollar for a third consecutive day Thursday even as Japanese officials warned that they may soon intervene to weaken their currency.
The yen was caught in the crossfire of a broad dollar sell-off that came after European officials struck a deal aimed at stabilizing the continent’s debt problems.
With the euro zone seemingly on a path toward containing damage from a potential Greek debt default following a meeting of European leaders Wednesday, investors sold so-called safe haven currencies — with the dollar at the top of their list.
We expect a range for today in USDJPY rate of 75.70 to 76.40 (We continued to hold our trade, since we last bought at 76.20)
We bought the pair at 76.20
Stop loss at 75.30
Target at 76.60, 76.90, 77.20
