🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

FOREX-Euro falls to record low vs franc on Greece worries

Published 05/26/2011, 11:07 AM
Updated 05/26/2011, 11:12 AM
EUR/CHF
-

* Euro retreats after rising above $1.42

* Eurogroup Juncker comments put markets on edge

* Swiss franc rises to record high versus euro (Updates with euro retreat; adds comment, details)

NEW YORK, May 26 (Reuters) - The euro fell to a record low against the Swiss franc on Thursday after comments from Eurogroup president Jean-Claude Juncker raised doubts about whether the IMF would release the next aid tranche for Greece.

The euro also trimmed most gains versus the U.S. dollar, after earlier climbing above $1.42 on a news report China is interested in buying bailout bonds for Portugal.

"The market was caught a bit long up near $1.42 and then Juncker's saying the IMF may not release the next tranche for Greece really got the market worried. Everyone was hitting bids and asking questions later," said Steven Butler, head of trading at Scotia Capital in Toronto.

The euro fell as low as 1.2235 Swiss francs, according to electronic trading platform EBS , before recovering slightly to 1.2243 francs, down 0.5 percent on the day.

Against the dollar, the euro was last at $1.4094, up 0.1 percent .

Support lies around the psychologically important level of $1.4000, which also marks the 200-week moving average. The 100-day moving average is just below there at around $1.3996.

If the euro does make a sustained break below $1.4000 then $1.3770, a 38.2 percent Fibonacci retracement of the euro's rise from June 2010 to May 2011, could be a key support, traders said.

The International Monetary Fund cannot continue to lend to Greece until it has financing assurances from EU partner countries for the bailout program, an IMF spokeswoman said on Thursday. See [ID:nN26191961]

Should the International Monetary Fund not pay its next tranche of aid to Greece, then there would be pressure on reluctant European countries to do so, Juncker said.

"If the Europeans have to acknowledge that the disbursement from the IMF on 29 June cannot be operationally implemented then the expectation of the IMF is that the Europeans would step in for the IMF and take upon themselves the IMF's portion of the financing," he said at a conference.

"That won't work because in certain parliaments -- Germany, Finland and the Netherlands and others too -- there is no preparedness to do so," he said. See [ID:nBRLQGE7EI] (Reporting by Wanfeng Zhou; Additional reporting by Nick Olivari and Steven C. Johnson; Editing by Andrew Hay)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.