FOREX-Euro edges adult on short-covering though vulnerable

Fri Nov 18, 2011 7:03am GMT

* Euro in downtrend though dump approaching to be light -trader

* Mounting risk hatred supports dollar

* Aussie dips behind next relation vs USD

* Worries grow as European bank appropriation condition tightens

By Masayuki Kitano

SINGAPORE, Nov 18 (Reuters) – The euro edged aloft on
Friday as traders lonesome brief positions after a new drop
to a five-week low, though a singular banking was approaching to
remain in a downtrend amid fears a euro section debt predicament is
spiralling out of control.

Selling vigour on a euro has strong this week
on signs that contamination was swelling to core euro zone
countries such as France, and a banking is on lane for its
biggest one-week dump given early September.

The spotlight fell on Spain on Thursday, that had to pay
the top rate to sell a 10-year debt given 1997, only shy
of a 7 percent symbol seen as unsustainable.

The euro, however, showed some resilience in a wake
of a Spanish bond auction, removing a boost from short-covering
and holding above a five-week tray of $1.3421 strike on Thursday
on trade height EBS.

“The marketplace is really fervent to sell a euro and also
eager to take some profits,” pronounced Jesper Bargmann, Asia conduct of
G11 mark FX for RBS in Singapore. “So we are saying seductiveness on
the dips to buy.”

Such short-covering seductiveness is approaching to insist and
limit a speed of a euro’s declines, Bargmann said.

“There’s copiousness of two-way seductiveness in a euro now,” he
added. “There’s a lot of brief positions out there and people
are fervent to book some profit. So it’s not an easy trade.”

The euro rose 0.2 percent to $1.3479, though is
still down roughly 2.4 percent for a week, on lane for its
biggest weekly commission decrease given early September.

The euro is approaching to exam a early Oct low of $1.3145
eventually, though a skirmish will substantially be gradual, said
Bargmann during RBS.

“I consider we’ll mangle $1.30 though we consider it’s going to be in a
fairly nurse fashion,” he said, adding that there were likely
to be some spikes and bouts of short-covering in between.

Support for a euro lies during around $1.3405, a 76.4
percent retracement of a Oct rally. The bottom of the
weekly Ichimoku cloud also offers support nearby that level,
coming in during $1.3408.

“The (euro’s) instruction is substantially toward the
downside though looking during how a marketplace has been relocating and
positioning, we have to be heedful of short-covering,” pronounced a
trader for a Japanese brokerage residence in Tokyo.

DOLLAR FUNDINS STRAINS

The deepening of a euro zone’s debt predicament has caused
heightened highlight in dollar appropriation markets this week.

The reward for swapping euros into dollars rose on
Thursday, with a three-month cross-currency basement barter around
6 basement points wider during -136 basement points, a many given the
2008 financial crisis.

“The delayed suit sight pile-up continues, with USD appropriation now
clearly a bigger emanate as contamination spreads some-more deeply into
Spain,” pronounced Sebastien Galy, strategist during Societe Generale.

The Australian dollar, that tends to come underneath vigour in
times of marketplace stress, dipped to a five-week low of
$0.9966 and was final down 0.3 percent during $0.9977.

“While risks to a downside seem some-more apparent, it’s
worth observant that a banking is now oversold on several
momentum-based indicators,” pronounced David Scutt, a merchant during Arab
Bank Australia in Sydney.

“Keeping this in mind, should any good news surrounding
Europe strike a screens, it’s approaching to see a Aussie spring
higher on a behind of brief covering.”

The dollar dipped 0.2 percent opposite a yen to 76.86
yen. Wariness about a probability that Japan may
intervene serve in a arise of a large yen-selling
intervention on Oct. 31, has lent support to a dollar
recently.

Increased signs of dollar-funding strains are another
factor ancillary a dollar, pronounced a merchant for a Japanese bank,
adding that dollar offers from Japanese exporters are approaching to
put downward vigour on a dollar towards a month-end.

View the original article here

FOREX-Euro seen vulnerable, rises on short-covering

Fri Nov 18, 2011 12:16am EST

* Euro in downtrend though dump approaching to be light -trader

* Mounting risk hatred supports dollar

* Aussie trims detriment after dipping next relation vs USD

* Worries grow as European bank appropriation condition tightens

By Masayuki Kitano

SINGAPORE, Nov 18 (Reuters) – The euro edged aloft on
Friday as traders lonesome brief positions and requisitioned profits
after a new dump to a five-week low, and a single
currency was approaching to sojourn on a downtrend given of the
spiralling euro section debt crisis.

The spotlight fell on Spain on Thursday, that had to pay
the top rate to sell a 10-year debt given 1997, only shy
of a 7 percent symbol seen as unsustainable.

The euro, however, showed some resilience in a arise of the
Spanish bond auction, handling to reason above a five-week trough
of $1.3421 strike in Thursday’s Asian trade.

The euro is being upheld by brief covering, pronounced Jesper
Bargmann, Asia conduct of G11 mark FX for RBS in Singapore, adding
that such profit-taking seductiveness is approaching to insist and limit
the speed of a euro’s declines.

“Market is really fervent to sell a euro and also fervent to
take some profits,” Bargmann said. “So we are saying seductiveness on
the dips to buy.”

“There’s copiousness of two-way seductiveness in a euro now,” he
added. “There’s a lot of brief positions out there and people
are fervent to book some profit. So it’s not an easy trade.”

The euro rose 0.2 percent to $1.3484, though is still
down roughly 2.4 percent for a week, on lane for a biggest
weekly commission decrease given early September.

Selling vigour opposite a singular banking has intensified
this week as misunderstanding in euro section bond markets widespread to
AAA-rated France.

The euro is approaching to exam a early Oct low of $1.3145
eventually, though a skirmish will substantially be gradual, said
Bargmann.

“I consider we’ll mangle $1.30 though we consider it’s going to be in a
fairly nurse fashion,” he said, adding that there were likely
to be some spikes and bouts of short-covering in between.

Support for a euro lies during around $1.3405, a 76.4
percent retracement of a Oct rally. The bottom of the
weekly Ichimoku cloud also offers support nearby that level,
coming in during $1.3408.

A merchant for a Japanese brokerage in Tokyo pronounced there was
talk that a euro choice position with a strike during $1.35 was set
to end today, and that players holding such a position may
buy a euro on dips and sell into rallies.

“The instruction is substantially toward a downside though looking at
how a marketplace has been relocating and positioning, we have to be
wary of short-covering,” a merchant said.

DOLLAR FUNDINS STRAINS

The deepening of a euro zone’s debt predicament has caused
heightened highlight in dollar appropriation markets this week.

The reward for swapping euros into dollars rose on
Thursday, with a three-month cross-currency basement barter around
6 basement points wider during -136 basement points, a many given the
2008 financial crisis.

“The delayed suit sight pile-up continues, with USD appropriation now
clearly a bigger emanate as contamination spreads some-more deeply into
Spain,” pronounced Sebastien Galy, strategist during Societe Generale.

The Australian dollar, that tends to come underneath vigour in
times of marketplace stress, dipped to as low as $0.9973 earlier,
matching a five-week low overwhelmed on Thursday.

The Aussie after pared some waste to change hands at
$1.0002, down 0.1 percent from late U.S. trade on
Thursday.

“While risks to a downside seem some-more apparent, it’s
worth observant that a banking is now oversold on several
momentum-based indicators,” pronounced David Scutt, a merchant during Arab
Bank Australia in Sydney.

“Keeping this in mind, should any good news surrounding
Europe strike a screens, it’s approaching to see a Aussie spring
higher on a behind of brief covering.”

Against a yen, a dollar dipped 0.1 percent to 76.87 yen
, with investors heedful of serve Japanese movement in the
wake of a large involvement on Oct. 31.

View the original article here

FOREX-Euro seen vulnerable, rises on short-covering

* Euro in downtrend but drop likely to be gradual -trader

* Mounting risk aversion supports dollar

* Aussie trims loss after dipping below parity vs USD

* Worries grow as European bank funding condition tightens (Updates levels, adds comments)

SINGAPORE, Nov 18 (Reuters) - The euro edged higher on Friday as traders covered short positions and booked profits after its recent drop to a five-week low, and the single currency was expected to remain on a downtrend because of the spiralling euro zone debt crisis.

The spotlight fell on Spain on Thursday, which had to pay the highest rate to sell its 10-year debt since 1997, just shy of the 7 percent mark seen as unsustainable.

The euro, however, showed some resilience in the wake of the Spanish bond auction, managing to hold above a five-week trough of $1.3421 hit in Thursday's Asian trade.

The euro is being supported by short covering, said Jesper Bargmann, Asia head of G11 spot FX for RBS (LSE: RBS.L - news) in Singapore, adding that such profit-taking interest is likely to persist and limit the speed of the euro's declines.

"Market is very eager to sell the euro and also eager to take some profits," Bargmann said. "So we are seeing interest on the dips to buy."

"There's plenty of two-way interest in the euro now," he added. "There's a lot of short positions out there and people are eager to book some profit. So it's not an easy trade."

The euro rose 0.2 percent to $1.3484, but is still down roughly 2.4 percent for the week, on track for its biggest weekly percentage decline since early September.

Selling pressure against the single currency has intensified this week as turmoil in euro zone bond markets spread to AAA-rated France.

The euro is likely to test its early October low of $1.3145 eventually, but its descent will probably be gradual, said Bargmann.

"I think we'll break $1.30 but I think it's going to be in a fairly orderly fashion," he said, adding that there were likely to be some spikes and bouts of short-covering in between.

Support for the euro lies at around $1.3405, the 76.4 percent retracement of the October rally. The bottom of the weekly Ichimoku cloud also offers support near that level, coming in at $1.3408.

A trader for a Japanese brokerage in Tokyo said there was talk that a euro option position with a strike at $1.35 was set to expire today, and that players holding such a position may buy the euro on dips and sell into rallies.

"The direction is probably toward the downside but looking at how the market has been moving and positioning, you have to be wary of short-covering," the trader said.

DOLLAR FUNDINS STRAINS

The deepening of the euro zone's debt crisis has caused heightened stress in dollar funding markets this week.

The premium for swapping euros into dollars rose on Thursday, with the three-month cross-currency basis swap around 6 basis points wider at -136 basis points, the most since the 2008 financial crisis.

"The slow motion train crash continues, with USD funding now clearly a bigger issue as contagion spreads more deeply into Spain," said Sebastien Galy, strategist at Societe Generale (Paris: FR0000130809 - news) .

The Australian dollar, which tends to come under pressure in times of market stress, dipped to as low as $0.9973 earlier, matching a five-week low touched on Thursday.

The Aussie later pared some losses to change hands at $1.0002, down 0.1 percent from late U.S. trade on Thursday.

"While risks to the downside appear more apparent, it's worth noting that the currency is now oversold on several momentum-based indicators," said David Scutt, a trader at Arab Bank Australia in Sydney.

"Keeping this in mind, should any good news surrounding Europe (Chicago Options: ^REURUSD - news) hit the screens, it's likely to see the Aussie spring higher on the back of short covering."

Against the yen, the dollar dipped 0.1 percent to 76.87 yen , with investors wary of further Japanese action in the wake of its massive intervention on Oct (KOSDAQ: 039200.KQ - news) . 31. (Additional reporting by Ian Chua in Sydney, Hideyuki Sano in Tokyo; Editing by Kavita Chandran)

View the original article here

FOREX-Euro edges up on short-covering but vulnerable

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* Euro in downtrend but drop likely to be gradual -trader

* Mounting risk aversion supports dollar

* Aussie dips back below parity vs USD

* Worries grow as European bank funding condition tightens (Updates levels, adds comments)

SINGAPORE, Nov 18 (Reuters) - The euro edged higher on Friday as traders covered short positions after its recent drop to a five-week low, but the single currency was expected to remain in a downtrend amid fears the euro zone debt crisis is spiralling out of control.

Selling pressure on the euro has intensified this week on signs that contagion was spreading to core euro zone countries such as France, and the currency is on track for its biggest one-week drop since early September.

The spotlight fell on Spain on Thursday, which had to pay the highest rate to sell its 10-year debt since 1997, just shy of the 7 percent mark seen as unsustainable.

The euro, however, showed some resilience in the wake of the Spanish bond auction, getting a boost from short-covering and holding above a five-week trough of $1.3421 hit on Thursday on trading platform EBS.

"The market is very eager to sell the euro and also eager to take some profits," said Jesper Bargmann, Asia head of G11 spot FX for RBS (LSE: RBS.L - news) in Singapore. "So we are seeing interest on the dips to buy."

Such short-covering interest is likely to persist and limit the speed of the euro's declines, Bargmann said.

"There's plenty of two-way interest in the euro now," he added. "There's a lot of short positions out there and people are eager to book some profit. So it's not an easy trade."

The euro rose 0.2 percent to $1.3479, but is still down roughly 2.4 percent for the week, on track for its biggest weekly percentage decline since early September.

The euro is likely to test its early October low of $1.3145 eventually, but its descent will probably be gradual, said Bargmann at RBS.

"I think we'll break $1.30 but I think it's going to be in a fairly orderly fashion," he said, adding that there were likely to be some spikes and bouts of short-covering in between.

Support for the euro lies at around $1.3405, the 76.4 percent retracement of the October rally. The bottom of the weekly Ichimoku cloud also offers support near that level, coming in at $1.3408.

"The (euro's) direction is probably toward the downside but looking at how the market has been moving and positioning, you have to be wary of short-covering," said a trader for a Japanese brokerage house in Tokyo.

DOLLAR FUNDINS STRAINS

The deepening of the euro zone's debt crisis has caused heightened stress in dollar funding markets this week.

The premium for swapping euros into dollars rose on Thursday, with the three-month cross-currency basis swap around 6 basis points wider at -136 basis points, the most since the 2008 financial crisis.

"The slow motion train crash continues, with USD funding now clearly a bigger issue as contagion spreads more deeply into Spain," said Sebastien Galy, strategist at Societe Generale (Paris: FR0000130809 - news) .

The Australian dollar, which tends to come under pressure in times of market stress, dipped to a five-week low of $0.9966 and was last down 0.3 percent at $0.9977.

"While risks to the downside appear more apparent, it's worth noting that the currency is now oversold on several momentum-based indicators," said David Scutt, a trader at Arab Bank Australia in Sydney.

"Keeping this in mind, should any good news surrounding Europe (Chicago Options: ^REURUSD - news) hit the screens, it's likely to see the Aussie spring higher on the back of short covering."

The dollar dipped 0.2 percent against the yen to 76.86 yen. Wariness about the possibility that Japan (EUREX: FMJP.EX - news) may intervene further in the wake of its massive yen-selling intervention on Oct (KOSDAQ: 039200.KQ - news) . 31, has lent support to the dollar recently.

Increased signs of dollar-funding strains are another factor supporting the dollar, said a trader for a Japanese bank, adding that dollar offers from Japanese exporters are likely to put downward pressure on the dollar towards the month-end. (Additional reporting by Ian Chua in Sydney, Hideyuki Sano in Tokyo)

View the original article here