Reuters: US Dollar Report: FOREX-Euro steadies but remains under pressure

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FOREX-Euro steadies but remains under pressure Jul 19th 2012, 00:14 TOKYO, July 19 | Wed Jul 18, 2012 8:14pm EDT TOKYO, July 19 (Reuters) - The euro steadied in Asian trade on Thursday but remained under pressure after reported comments by German Chancellor Angela Merkel rekindled fears about the euro zone debt crisis. "We have not yet shaped the European project in a way that we can be sure that everything will turn out well, we still have work to do," Merkel said in an interview posted on her Christian Democratic Union party's website, according to a media report. Although she added that she was "optimistic that we will succeed," her remarks helped push the euro to a session low against the greenback, a record low against the Australian dollar and a 3-1/2-year low against sterling . "Despite gains in risk assets in recent days, we expect risk sentiment to trade sideways until global uncertainty begins to dissipate," strategists at Barclays Capital wrote in a note to clients on Thursday. Until then, portfolios with a long-term perspective will favor high-carry currencies in places where valuations look broadly fair, such as Brazil, they said. Such positions will be funded with euros, adding to pressure on the European unit. The euro was last at $1.2276, down slightly but within a few ticks of its late North American levels, and above an overnight low of $1.2216. It remained above a two-year low of $1.2162 hit last week. Against the yen, the euro bought 96.72 yen, above its overnight low of 96.46 yen and moving back toward a six-week low of 96.17 yen touched on Monday. It also remained near a record low against the Aussie of A$1.1827, trading at A$1.1847. The euro was at 78.45 pence versus sterling, not far from 78.27 pence touched overnight and on Tuesday, which was its lowest since November 2008. The dollar bought 78.77 yen, moving back toward a one-month low of 78.68 yen hit on Monday, with resistance at the July 5 high of 80.09 yen. The Aussie was near a 10-week high against its U.S. counterpart, buying $1.0356, with support seen at the former resistance at the July 5 high of $1.0330. On the upside, stops are said to be placed around $1.0380. Link this Share this Digg this Email Reprints

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