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
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23 comments:

  1. Kan GebeurenFebruary 22, 2011 at 5:17 AM

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

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  2. Every DayFebruary 22, 2011 at 5:43 AM

    wtf bombed? that is going overboard.

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  3. l33 v4n cl33fFebruary 22, 2011 at 6:01 AM

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

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  4. Electric AddictFebruary 22, 2011 at 6:19 AM

    cool thanks for the tips :)

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  5. PvtCarlinFebruary 22, 2011 at 6:30 AM

    Thanks for the infos, as usual.

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  6. edFebruary 22, 2011 at 6:35 AM

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

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  7. obiFebruary 22, 2011 at 6:41 AM

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

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  8. metaphysicalfarmsFebruary 22, 2011 at 6:42 AM

    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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  9. baka1236February 22, 2011 at 7:31 AM

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

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  10. HaliChapFebruary 22, 2011 at 9:40 AM

    volatilty time :/

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  11. Some_Chi_GuyFebruary 22, 2011 at 10:25 AM

    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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  12. Melodic MayhemFebruary 22, 2011 at 10:31 AM

    dang dollar, whatup with BitCoin?

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  13. RaZerFebruary 22, 2011 at 10:44 AM

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

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  14. MarijnFebruary 22, 2011 at 11:05 AM

    I hope it won't drop more

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  15. nooneFebruary 22, 2011 at 11:32 AM

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

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  16. D22 ZoneFebruary 22, 2011 at 11:34 AM

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

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  17. Mike YangFebruary 22, 2011 at 11:36 AM

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

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  18. BrendanFebruary 22, 2011 at 1:11 PM

    whats risk aversion?

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  19. Marcus SilvaFebruary 22, 2011 at 1:44 PM

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

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  20. Eric PFebruary 22, 2011 at 1:48 PM

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

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  21. SpikeFebruary 22, 2011 at 2:13 PM

    very interesting, thanks

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  22. FourraFebruary 23, 2011 at 5:48 AM

    quite complicated but very informative thx

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  23. Anonymous.February 23, 2011 at 7:12 AM

    Interesting indeed.

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