Wednesday July 13th, Major Currencies Performance

EURUSD

On Tuesday the 12th of July the Euro was in focus by investors.  Early at US session when US trade data were announced the greenback continued gaining ground against the euro.  Moreover the euro yesterday fell to its lowest level in four months versus the US dollar and the Swiss franc on fears that euro zone leaders are failing to manage risks in peripheral countries. Sovereign debt crisis contagion worries are increasing as borrowing costs for Spain and Italy is at record highs for the last 14 years , and their ability to meet their obligations is becoming more difficult. The euro was also falling across the board after Moody’s downgraded Ireland credit rating into junk territory.  The euro against the greenback fell aggressively down to the 1.3837 and found support there. The single currency fell below the 200-day moving average and bounced up after upbeat Chinese data that increased the risk appetite finding resistance at the 1.4052. Against the Swiss franc the euro plunged to the 1.1546 support level and bounced up to the 1.1719 resistance. The Japanese yen benefited from euro woes hitting a peak against the US dollar pushing at the same time the EURJPY to drop down to the 109.55 support while it found resistance at the 111.93. 

US Dollar

The Japanese yen was benefited from sovereign debt worries in euro zone as the USDJPY pair fell down to the 78.42 level the lowest in the last four months, then stepped back from lows as the overall risk appetite was improved. Versus the Swiss franc the US dollar fell down to 0.8280 support with the Swiss franc gaining ground in an uncertain economic environment. The Aussie was also down trending since the previous week, however yesterday found support at the 1.0523 and bounced up to 1.0641 resistance.  For the time being the financial markets are focused to the European Union leaders emergency summit expected on Friday until then the euro is most probably going to remain vulnerable.