As European stocks increased in value, safe-haven investment assets like the yen lost value to the dollar as the Japanese monetary unit approached its lowest value in one month to the world's reserve currency. Despite the progress with the sovereign debt crisis, a currency strategist told the news service of the likelihood of pessimism from leaders in the euro zone.
"I'd expect there to be a fair bit of dissent amongst European leaders and some of that is likely to leak out," currency strategist Mike Burrowes with Bank of New Zealand in Wellington told Bloomberg. "My bias for euro, kiwi, Aussie and the like is to buy dips, as we are getting closer to a package and that will see a stabilization in sentiment."
Against the greenback and the single currency on Monday morning, the Japanese yen fell 0.3 percent and 0.4 percent, respectively. But the euro drove toward its highest value against the U.S. dollar since September 16 with a 0.1 percent lift.
But, despite G-20 leaders' support, Reuters reports private bankers' eyebrows raised regarding increased bank resources being used for sovereign debt issues.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.