Fundamental headlines
-Facilitated EU leaders rules of the Spain debt crisis - Bloomberg
-Euro rises after the EU abandons leaders Spain loan seniority - Bloomberg
-Why Roberts saved right from the Obama - Reuters Health
-The euro area saw only bank supervisor - WSJ
-Summit report outlines the Divisions on the sharing of power - WSJ
Summary of Asian and European Session
Oh, what a night. The past several currencies beta high days and correlated to the risk of the assets were under pressure as expectations for any kind of measures of the eurozone Summit flatly was zero. The logic was, and remains, European leaders did not have the means necessary to implement the structural reforms needed to not only stop the financial pain in the short term, but also to solve problems in the long term that first created the sovereign debt crisis.
Certainly, one of these was accomplished at the Summit this week, leading to the largest gathering of the Euro altogether by 2012. The US Dollar has had its worst day of the year; overall, we study the simple high beta currency plu displacement and correlated with the risk since 30 November 2011, when the federal reserve announced that its two years of currencies with European Central banks. Oh, what a night.
A step back in the charts for a second, we must take into account the parameters of the measures communicated to the Summit to decide or not to now almost-2 percent move in the Australian Dollar and the Euro will be long-term, or if we see some additional volatility due to the end of the month and the quarter.
In my view, there are four glaring holes in the top ads. First of all, it is clear that, in view of the language contained in the declaration, no bank recapitalisation plan by the European stability mechanism (ESM, which replaces the EFSF, the European financial stability facility) is not a guarantee; It is a possibility if strict conditions are met. Second, and stay on environmentally sound management, these changes must now be ratified by all 17 members of the Euro area; and the Germany still to ratify the agreement of the first. The ESM is therefore not be enabled. Third, the idea of the direct bank recapitalisation does serve well with taxpayers in the European core. And finally, fourth, mechanisms of rescue, in my opinion, are doomed to failure once the Italy and the Spain tap them. Once these countries tap the funds, the burden falls on the country in better health, and we have already seen that the Germany will be difficult to convince them to contribute more funds.
If there is a positive result at the Summit, it would be that the seniority has been removed from the ESM. This means that private holders who have been forced to take a cut of hair on Greek loans, have the same pain. This should allow Spanish yields recover. They have to date, with performance in Spanish note 2 years fell to 4.267 percent and performance of the note of 10 years at 6.393%.
EURUSD 5-minute: 29 June 2012
Graphing with Marketscope - prepared by Christopher Vecchio
The Australian Dollar is the now surging 1.99% against the U.S. Dollar this day Friday. The EURUSD is significantly stronger, appreciating of 1.94%. The New Zealand Dollar has followed more so, with the NZDUSD judging of 1.90%. The Japanese Yen is the worst, with the USDJPY rallying for only 0.16 per cent.
PriceAction 24-hour
Main levels: 14: 20 GMT
So far, on Friday, the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is significantly less, trade at 10056.19 at the time when this report was written, after opening at 10173.06. The index traded mostly lower, with the high in the 10179.54 and bass at 10049.57.
-Facilitated EU leaders rules of the Spain debt crisis - Bloomberg
-Euro rises after the EU abandons leaders Spain loan seniority - Bloomberg
-Why Roberts saved right from the Obama - Reuters Health
-The euro area saw only bank supervisor - WSJ
-Summit report outlines the Divisions on the sharing of power - WSJ
Summary of Asian and European Session
Oh, what a night. The past several currencies beta high days and correlated to the risk of the assets were under pressure as expectations for any kind of measures of the eurozone Summit flatly was zero. The logic was, and remains, European leaders did not have the means necessary to implement the structural reforms needed to not only stop the financial pain in the short term, but also to solve problems in the long term that first created the sovereign debt crisis.
Certainly, one of these was accomplished at the Summit this week, leading to the largest gathering of the Euro altogether by 2012. The US Dollar has had its worst day of the year; overall, we study the simple high beta currency plu displacement and correlated with the risk since 30 November 2011, when the federal reserve announced that its two years of currencies with European Central banks. Oh, what a night.
A step back in the charts for a second, we must take into account the parameters of the measures communicated to the Summit to decide or not to now almost-2 percent move in the Australian Dollar and the Euro will be long-term, or if we see some additional volatility due to the end of the month and the quarter.
In my view, there are four glaring holes in the top ads. First of all, it is clear that, in view of the language contained in the declaration, no bank recapitalisation plan by the European stability mechanism (ESM, which replaces the EFSF, the European financial stability facility) is not a guarantee; It is a possibility if strict conditions are met. Second, and stay on environmentally sound management, these changes must now be ratified by all 17 members of the Euro area; and the Germany still to ratify the agreement of the first. The ESM is therefore not be enabled. Third, the idea of the direct bank recapitalisation does serve well with taxpayers in the European core. And finally, fourth, mechanisms of rescue, in my opinion, are doomed to failure once the Italy and the Spain tap them. Once these countries tap the funds, the burden falls on the country in better health, and we have already seen that the Germany will be difficult to convince them to contribute more funds.
If there is a positive result at the Summit, it would be that the seniority has been removed from the ESM. This means that private holders who have been forced to take a cut of hair on Greek loans, have the same pain. This should allow Spanish yields recover. They have to date, with performance in Spanish note 2 years fell to 4.267 percent and performance of the note of 10 years at 6.393%.
EURUSD 5-minute: 29 June 2012
Graphing with Marketscope - prepared by Christopher VecchioThe Australian Dollar is the now surging 1.99% against the U.S. Dollar this day Friday. The EURUSD is significantly stronger, appreciating of 1.94%. The New Zealand Dollar has followed more so, with the NZDUSD judging of 1.90%. The Japanese Yen is the worst, with the USDJPY rallying for only 0.16 per cent.
PriceAction 24-hour
Main levels: 14: 20 GMT
So far, on Friday, the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is significantly less, trade at 10056.19 at the time when this report was written, after opening at 10173.06. The index traded mostly lower, with the high in the 10179.54 and bass at 10049.57.
The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) remains 0.03 percent higher from the open after moving 105 percent of its average true range, and we may see the greenback consolidate throughout the North American trade as hopes surrounding the G8 Summit props up market sentiment. However, as the EU struggles to meet on common ground, there’s certainly limited scope of seeing something done on a global scale, and we should see the flight to safety gather pace in the days ahead as the heightening risk for contagion saps risk-taking behavior. In turn, the upward trending channel should continue to take shape in the week ahead, and we will be watching for fresh 2012 highs in the index as the economic docket is expected to highlight an improved outlook for the U.S. economy. 
Although the USDOLLAR remains overbought, the drop in risk-taking behavior continues to increase the appeal of the reserve currency, and we will need to see the oscillator fall back below 70 to pave the way for a short-term correction. As the fundamental developments on tap for the following week are expected to show a rise in home sales paired with a rebound in U.S. durable goods, a slew of positive developments should heighten the bullish sentiment underlining the greenback, and we may see the fundamentals play an increased role in dictating price action as it dampens speculation for additional monetary support. However, as the index struggles to hold above the 78.6 percent Fibonacci retracement around 10,118, the dollar may be carving out a higher high in May, and we will be looking for a higher low as the greenback looks poised for a correction. In turn, we may see the 61.8 percent Fib around 9,949 come in as new support, and we will maintain our bullish call for the USD as the Fed slowly moves away from its easing cycle. 
Two of the four components weakened the greenback, led by a 0.62 percent decline in the Australian dollar, and the high-yielding currency may face additional headwinds in the week ahead as the growth outlook for the $1T economy deteriorates. Beyond the headlines coming out of Europe, developments coming out of China – Australia’s largest trading partner – may continue to stoke fears of a ‘hard landing,’ and we may see market participants increase bets for lower borrowing costs as the Reserve Bank of Australia looks to carry its easing cycle into the second-half of the year. According to Credit Suisse overnight index swaps, market participants are pricing a 73 percent chance for another 50bp rate cut at the next rate decision on June 5th, and the AUDUSD may continue to give back the rebound from back in November as it searches for support. --- Written by David Song, Currency Analyst To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong To be added to David's e-mail distribution list, send an e-mail with subject line "Distribution List" to dsong@dailyfx.com. Join us to discuss the outlook for the major currencies on the DailyFX Forums 
