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Unsurprising though it may be, risk aversion kicked in a notch overnight as news of a potential downgrade within a month by Standard & Poors for Greece. Such a move would leave its long-term debt rating on the border of junk status increasing pressure on the government already finding the…

GBP/JPY drops further as expected and reaches as low as 135.82 so far, just inch above mentioned target of 61.8% retracement of 118.81 to 163.05 at 135.70 next. At this point, intraday bias remains on the downside and break of 135.70 fibonacci level will target 100% projection of 150.68 to…

Yen continues to rise on the current wave of risk aversion and extends recent rally in early US session. While Greece’s sovereign rating remains the center of focus, worse than expected jobless claim report from US triggers another wave of selling in yen crosses in early US session. Mixed durable…

The USD and JPY trade higher supported by a spike in risk aversion as stocks decline and the European press reports that there is less chance of aid for Greece as the Greek PM comments on Germany’s Nazi past, EUR pressured by speculation of Greek debt downgrade, GBP pressured by…

To add to the previous post; Spain’s problems are also putting pressure on the euro. Currently, Spain has a 19% unemployment rate and a GDP that contracted 3.6% in 2009. It seems as though the same problems that Greece is facing are now popping up in Spain, the euro zone’s fourth largest economy. However, due to its membership in the euro, Spain now lacks the ability to heal its own economy and it is receiving no help from a budget deficit that is now 11.4% of last year’s GDP.

Moody’s investor services and S&P made comments that they may possibly downgrade Greece’s credit rating once again, which caused the euro to fall to a one year low against the JPY. It reached a rate of 120.74, the lowest level since February 24, 2009.  Additionally, the Nikkei dropped 0.9% and Australia’s S&P/ASK 225 fell 0.9%.  The comments released warned that Greece’s fiscal problems could possibly spread to other nations and continue losses in the euro. It will be interesting to see what happens to the euro when European traders come in later this session….

The Cable has spiked below the Support at 1.5283 to record a low of 1.5271 so far and doesn not seem to be in a great mood to go for consolidation. The bears have pounced once again and this time the next prominent closest target is near 1.50. The pair…

It seems that in the last few days the situation in Greece has taken a palpable turn for the worse. Not that any new economic revelations have revealed themselves, but rather there has begun a noticeable shift from the contained economic realm to the social realm. First, credit rating agencies…

M3 annual growth improved from -0.3% in December to 0.1% in January while M1 growth declined from 12.3% to 11.5%. This is due mainly to base effects though. Looking at outstanding amounts the picture is different. M3 declined from EUR9,322bn at the end of December to EUR9,313bn at the end…

Bernanke may have delivered no major surprises yesterday but his reassurances that rates will be left on hold for an extended period allowed a little support for equity markets. In contrast the fx market is not in the mood to extend risk. Bernanke’s speech yesterday coincided with the release of…