The euro zone crisis has been going on now for two years and the worst is not over yet. This has sent traders looking for vehicles to profit from the crisis as well as hedging their portfolio. One vehicle that traders turned to has been ETFs. ETFs are a great way to gain exposure to markets with a stock market account without having a futures/commodities or forex account.
The EUR/USD backed off the session’s high of 1.30828 as the U.S. session began to ramp up. The euro strengthened on the back of Spanish elections over the weekend won by incumbent Prime Minister Mariano Rajoy.
The GBP/USD lost steam in the U.S. session as U.S. unemployment claims disappointed markets earlier today.
The EUR/USD has been in rally mode for two straight sessions on what is perceived to be positive news from the euro zone.
WTI crude oil prices continue to trade flat as investors wait to see if Spain will formally request a bailout and initiate a European Central Bank bond-buying program.
The U.S. dollar climbed against the Japanese yen in the final session of the week, and third quarter. The dollar gained strength from the announcement of Spain’s proposed 2013 budget with its austerity measures of cutting spending without increasing taxes.
The euro zone debt crisis and uncertainty surrounding a Spanish bailout is causing a sell-off of risk assets, with the British pound getting caught up in the sell-off as money flows into the U.S. dollar.
Traders have been seeking the safety of the U.S. dollar after the Chinese and French Purchasing Managers (PMI) surveys disappointed markets, with China’s survey now contracting for the eleventh straight month.
The U.S. dollar has moved broadly higher for the second session in a row against most of its counterparts.