Euro-boost foiled after Greek confidence vote

Aussie dollar – The Aussie remains lower but has risen from its earlier lows in response to the realization that the Greek confidence vote was merely the first hurdle in the race to prevent a Greek financial crisis turning into a global problem. Last week the IMF warned European leaders that failure to take decisive action on the debt crisis risks triggering a “larger global spillover.” Weakness in regional stocks has the Aussie back in to the ‘riskier’ camp midweek although it has edged up to $1.0591 from a session low at $1.0568 U.S. cents.

Japanese yen – The yen remained range bound repeating its Tuesday performance. At one point overnight the dollar appeared more favored and sent the yen lower but a recent risk-off attitude has kept the dollar under pressure and just above ¥80.00. An index showed April all-industry activity rebounding by 1.5% after an unsurprising 6.4% decline around the time of the March earthquake. The yen advanced against an ailing British pound to ¥129.07 following the minutes from the Bank of England.

Canadian dollar – Lower stock index futures and weakness in crude oil prices put some pressure on the Canadian dollar ahead of the opening bell. The unit buys less dollars today at $1.0249 from $1.0278 at its best level on Tuesday.

Andrew Wilkinson is a Senior Market Analyst at Interactive Brokers LLC

Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither Interactive Brokers LLC nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither IB nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.

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About the Author
Andrew Wilkinson

Andrew is a seasoned trader and commentator of global financial markets. He worked for several London-based banks trading cash and derivatives before moving to the U.S. to attend graduate school. Andrew re-joins Interactive Brokers following a two-year stretch at a major Wall Street broker-dealer as their Chief Economic Strategist. His coverage of stocks, options, futures, forex and bonds regularly surfaces in global media, and over the last several years Andrew has made many TV appearances on Bloomberg, BBC, CNBC and BNN and Yahoo Finance.

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