Reuters: US Dollar Report: FOREX-Euro surrenders gains in technical trading

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

FOREX-Euro surrenders gains in technical trading Mar 21st 2012, 16:47 Wed Mar 21, 2012 12:47pm EDT * Euro falls to session lows in technical trade * Early gains came on Greek lawmakers' rubber-stamp of bailout * Dollar surrenders gains against the yen NEW YORK, March 21 (Reuters) - The euro slid sharply against both the dollar and yen on Wednesday, falling from a near five-month high against the yen, in technical trading after it failed to push through to new highs and breached stop-loss orders as it fell. Earlier, the euro had been higher as the Greek bailout appeared to progress with Greek parliamentary approval. Many analysts said the approval had been seen as a formality but signs the Greek bailout was on track boosted the euro zone's common currency in early global trading. But after the euro failed to hold gains in the New York session, investors began to sell and that sparked further selling as stop-loss orders were triggered. The U.S. dollar surrendered gains against the yen after data showed U.S. home resales unexpectedly fell in February and the supply of properties on the market rose, underscoring the many hurdles for a housing market recovery. "The lack of follow-through on the upside in the euro precipitated a technical run to $1.3200, which then led to the execution of stop-loss orders below $1.3200 the figure," said Joseph Trevisani, chief market strategist at Worldwide Markets in Woodcliff Lake, New Jersey. The euro was last down 0.1 percent at $1.3205 after falling as low as $1.3177. It had climbed to an almost two-week high of $1.3284 in earlier trade, according to Reuters data, after Greece's lawmakers approved the country's second bailout deal, as expected. Technical analysts were earlier forecasting the euro rally was likely to run out of steam around $1.33, just above the 61.8 percent retracement of its late February to mid-March fall. In New York trading, the rally ended sooner than that. The euro also fell to session lows against both the Swiss franc and sterling as investors abandoned the common currency. The euro fell from a near five-month peak of 111.43 yen, according to Reuters data, after nearing resistance around the peak hit on Oct. 31, when Japanese authorities last intervened in the market. It was last at 110.51, down 0.2 percent with the session low at 110.25 yen. Investors will now look to manufacturing data in Europe to be released on Thursday even as they remain wary of the risk of another flare-up in the euro-zone debt crisis, with the Italian government looking set to clash with unions over employment law reforms.. "Tomorrow's PMIs will be important, as recent data has pointed to some stability in several European economies, and the PMI will help confirm this, which would be positive for the euro," said Camilla Sutton, chief currency strategist at Scotia Capital in Toronto. Rising U.S. yields and monetary easing from the Bank of Japan last month had pushed the dollar higher, particularly against the yen. The greenback rose as high 84.09 yen, just shy of an 11-month high touched in recent days. But euro selling against the yen and the poor U.S. housing data later pushed the dollar down 0.1 percent to 83.64 yen, though the dollar is still up 8.7 percent in 2012 to date. During the Asian session, Japanese exporters were seen selling the dollar ahead of the end of their financial year on March 31. But market players said there had been demand to buy the greenback on dips. The Australian dollar fell 0.3 percent to $1.0441 after earlier falling to a two-month low of $1.0417, just above the 200-day simple moving average of $1.0400. The 200-day exponential moving average lies at $1.0375. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions