Tuesday, February 22, 2011

European markets drop, Dollar stronger on rising tensions in Libya

European markets are going through considerable declines on early Tuesday's session, with risk aversion dominating, on concerns about growing tensions in Egypt and Moody's downgrade of Japan's debt. In currency markets the Dollar appreciated against Euro Pound and Yen.

Eurostoxx 50 Index drops 1.3%, while the German DAX Index sheds 0.7%, and the French CAC 1.7% below the opening level. In the UK, the FTSE Index dips 1.25% less than two hours after the opening bell.

European markets are trading under strong risk aversio,n following escalating tensions in Libya, where army jets and helicopters bombed demonstrators causing more than 200 deaths, and raising serious concerns about shortages on oil production.

Asian stocks have moved lower on Tuesday weighed by a strong earthquake in New Zealand's Cristchurch, which has killed at least 65 people, and Moody's decision to cut Japan's Aa2 debt rate to "negative", from stable.

Dollar rises on risk aversion

EUR/USD retreat from Friday's high at 1.3715 extended on Asian session below 1.3600 to hit day low at 1.3525, before picking up to 1.3575 area on early European session.

GBP/USD retreat from Friday's high at 1.6260 extended in Asia below 1.6200 to find support at 1.6130 at London session opening, and pick up to 1.6180.

USD/JPY attempted to bounce up from 82.85 low on early¡y Asian session, to be capped at 83.45 and the paitr plunged on European session opening returning below 83.00 to hit a fresh 8-day low at 82.80.

source: http://www.fxstreet.com

24 comments:

  1. Crazy stuff happens there in Libya. Too bad we also have to suffer.

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  2. wtf bombed? that is going overboard.

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  3. good to know its interesting to see how the recent conflicts in egypt affect the world economics

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  4. that's horrible that demonstrating in a 3rd world can cost you your life

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  5. i wish i knew how to turn all this information into knowledge ;)

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  6. I was surprised to the the PM show up in Cairo this weekend.... always good to keep connections in trouble areas I suppose

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  7. bad news for the europeans. Sucks about what's going on in libya though

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  8. Finally, it seems the USD is rising a bit. Sorry, but I'll stick to my small stock in gold and silver.

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  9. All this stuff going on is really tossing the currencies around.

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  10. thats bad... i love shopping in us dollars, it is weak right now.

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  11. Not much of a suprise really I guess.... Our currency sucks!

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  12. Take that Eurozone :)
    Been sore about that one ever since they passed the dollar...

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  13. Ooh interesting, I'll have to come here to get my info.

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  14. Probably due to the fact that Libya supplies a large amount of petroleum to Europe...

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  15. quite complicated but very informative thx

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