* Euro retreats after Spanish rating downgrade
* Weak Italian, German economic data adds to gloom
* Lack of policy action from Fed hits riskier currencies
* Spain expected to request aid package at weekend: sources (Adds details, quotes, updates prices, previous LONDON)
NEW YORK, June 8 (Reuters) - The euro slid on Friday after a three-notch downgrade to Spain's credit rating and signs of economic weakness in Italy and Germany, leaving it vulnerable as concerns increase that the euro zone debt crisis is getting worse.
European Union and German sources told Reuters Spain was expected to make a request over the weekend for an aid package to prop up its troubled banks, highlighting the vulnerability of the country's financial sector.
Rating agency Fitch slashed Spain's credit rating on Thursday, leaving it just two notches short of junk status. It signaled further downgrades could come as the country tries to restructure its troubled banking system.
"There has been little to soothe uncertainty and central bank action this week failed to remove tail risk," said Camilla Sutton, senior currency strategist at Scotia Capital in Toronto. "News flow remains relatively negative."
The euro fell 0.8 percent to a low of $1.2462, retreating from a two-week high of $1.2625 hit on Thursday after a surprise interest rate cut by the Chinese central bank.
More losses would leave the euro vulnerable to a test of the 23-month low of $1.2286 hit on June 1, using Reuters data, after failing to break above chart resistance at $1.2623, the January low.
The euro also took a knock after Italian industrial production fell far more than expected in April and German imports tumbled at their fastest rate in two years, adding to euro zone recession concerns.
The euro briefly came off its lows after China said it would cut fuel prices by nearly 6 percent from Saturday, which some traders saw as another positive step that may help stimulate China's economy.
But some analysts were concerned that by cutting rates on Thursday China might have been looking to pre-empt grim news from Chinese data due out over the weekend.
"The news with the easing measures in China would normally be positive for risk assets but the market is cautious," said Ian Stannard, currency strategist at Morgan Stanley in London.
"Below $1.2290 would leave $1.20/$1.19 in view, but the euro could get some positive surprises on the way that could lead it back up to the $1.26/$1.27 area."
EURO WORRIES
Many analysts said the euro could come under further pressure next week as attention refocuses on political turmoil in Greece before an election on June 17. A victory for anti-bailout parties would raise the possibility of Greece leaving the currency union.
The euro fell 1.1 percent against the yen to 98.93 yen. The safe-haven Japanese currency gained broadly as market sentiment declined, with the dollar losing 0.3 percent to 79.37 yen.
Currencies with more perceived risk were also under pressure after U.S. Federal Reserve Chairman Ben Bernanke offered no hints of imminent monetary stimulus in his testimony to Congress on Thursday, wrongfooting some market players who had positioned for a dovish statement.
"The recovery (in the euro) we saw in the last few days was not a sustainable one," said Lutz Karpowitz, currency strategist at Commerzbank, who forecast the euro would be around $1.20 by the end of June.
The higher-yielding Australian dollar slipped 0.5 percent against the U.S. currency to US$0.9850.
Thomson Reuters released its monthly foreign exchange trading volumes for May 2012 on Friday. May average daily volume was $154 billion up from $130 billion in April but down from the $161 billion reported in May, 2011. (Reporting By Nick Olivari, editing by Dave Zimmerman)
Forex: USD/CHF up on Germany trade surplus - FXStreet.com
Forex focus: even the major expat currencies are suffering - Daily Telegraph
The yuan has softened as a result, with last month's fall being the worst performance it has seen for five years.
Australia has been helped by surprisingly good growth figures posted this month.
"The Aussie dollar is more tied to China than anybody else's currency," says Jeremy Cook of World First, "and will remain so as long as China maintains its position as the manufacturing powerhouse it has become.
"However all these currencies are influenced by China. As China's factories slow, so does their appetite for raw material imports and this hurts the Australian economy and all the rest. Without growth these currencies will remain unloved."
These Antipodean currencies, along with Canada, are seen as commodity currencies as most of their output comes from mining of various resources including gold, minerals and oil along with soft commodities such as wheat and wool.
They've been booming since the turn of the century but this year has been rough on them, offering some desperately needed respite to expats relying on an income in sterling. It's not just China which is cooling down, India too has seen the brakes put on its booming expansion. And, of course, Europe is still one of their main trading partners.
Unlike the UK and much of Europe, they have plenty of options to ease the situation. One possible solution, if the politicians are anxious to boost their exchange rate and attract investors, is to increase the interest rate.
Josh Ferry Woodard of TorFX believes that both Canada and South Africa could hike their rates this year which will strengthen their currency. Meanwhile, Canada's poor domestic output for the first three months of the year dealt a severe blow to optimism surrounding the Loonie.
He says: "With 18-month highs in sight, the pound has been performing better against the Canadian dollar, in relative terms, than any of the other major currencies.
"There is a possibility that the damage done to the South African economy as a result of the euro crisis could in fact lead to an interest rate increase later on in the year to combat domestic inflation which could actually prove to be the catalyst towards a stronger rand."
One of the biggest winners in the currency wars at the moment is the US dollar. Unless they're earning in dollars, expats living in the States will be suffering as the pound has fallen back to within touching distance of 2010's two-year low.
Forex focus is sponsored by
Money Centers of America Inc., acquires Landmark Group Holdings assets - YAHOO!
Money Centers of America, Inc. (http://www.moneycenters.com) announced Friday that it had acquired the assets of Landmark Group Holdings. The deal includes Landmark’s proprietary software and contracts with properties in Washington, Idaho, California, Colorado, South Dakota, and Nevada. The company will continue to operate under the Landmark name as a subsidiary of Money Centers.
King of Prussia, PA (PRWEB) June 08, 2012
Money Centers of America, Inc. (http://www.moneycenters.com) announced Friday that it had acquired the assets of Landmark Group Holdings. The deal includes Landmark’s proprietary software and contracts with properties in Washington, Idaho, California, Colorado, South Dakota, and Nevada. The company will continue to operate under the Landmark name as a subsidiary of Money Centers.Washington based Landmark provides check guarantee, check verification, Title 31 / Currency Transaction Reporting, and on-line software applications to establish credit limits and monitor guests’ marker activities.
Landmark’s C4 software captures and stores check cashing, credit and debit card transactions and related credit information in a real-time, on-line environment. This product is designed to increase cash flow and minimize declined check requests on responsible guests. The Landmark system gives the client immediate and specific information including credit history and available credit.
Landmark and Money Centers describe this as an opportunity to grow a national database and consolidate software products for the cage.
“It is a data driven world today. Cashing checks, extending credit and processing cash advance transactions from the cage is the lifeblood of the casino. Having real-time transaction information not only puts money on the floor but also allows the casino to get better information on their customer’s available credit for marketing and player tracking purposes.” Landmark and Money Centers President Mark Wolfington said.
Money Centers Chairman and CEO Chris Wolfington says acquiring Landmark is a sign of Money Centers growth. “Since 1998, Money Centers has been providing cash access services and software that enables gaming operators to use the power of technology to increase profits and improve the customer experience. Adding Landmark’s technology and products is an extension of that mission.”
“We have worked with Landmark in the past year integrating our ONtime POS system with Landmark’s check guaranty engine. Landmark has a deep database and long history of cashing checks. By combining their West Coast presence with our locations we have created a national database. We are excited about the opportunity to own our own risk management software and have a fully integrated credit database.”
Lauren Anderson
Money Centers
610-354-8888
Email Information
Forex: USD/CHF attempts to overcome 0.9650 - FXStreet.com
No comments:
Post a Comment