Forex: Major Currencies are heading to Low of 2008

EU/ECB's announced to cut the budgeting costs benefits the EURO in last week along with the approval of Greece rescue fund, but the gain in USD impacts the EURO and this makes the EURO fall against the major currencies of Forex market along with the USD. The currency pair of EUR/USD falls to 1.2352 just an inch above the low of 2008 that is of 1.2329. After the approval of Greece aid-package, there are some easiness is seen in the euro zone on temporary basis but it is not permanent because of number of other major concerns related to the development in euro zone. In the end of last week there is some benefits are seen in the market, that is the Gold makes a record of 1,2497 of high and on the other hand USD also managed the benefits by touching the high level. In risky assets, the crude oil drops and other major stocks hits a high.

EuRO zone is surrounded by number of major concern issues. They are: Firstly it is been heard that unless Angela Merkel, the German Chancellor do not agree upon the EU bailout plan the French President Sarkozy will not do any favor for the EURO currency and it will continue to be shattered down. The second major issue is that the euro zone countries Spain and Portuguese had announced last week that they will implement the austerity plan and workout on that, but the euro zone is unable to make improvements in their fiscal health.

The third important issue is if the euro zone countries or other will implement the austerity plans then it will mainly affect the EURO currency and also drags down the economic recovery. The last concern is about the bank that if it will not implement the quantitative easing then the market still not get benefited and it also makes the euro drop-down. It is predicted that all the major outcomes from the euro currency is negative as it is the common currency among the major currency pairs in the Forex online market.

As per the last week's Forex session the major outcomes in stocks is seen as FTSE 100 up 139 points, DOW up 240 points and Nikkie up 98 points in the overall week. It seems that after the Friday's sell off the market is in the intra-week high position. After the fall started in April there is a decline noticed in terms of Global equities. There is some weakness shown in the crude oil favors the Gold and Dollar in the past week by making it reaching to high position. These all things makes the EURO currency fall down along with commodity currencies.

Easy-going BoE makes the Sterling currency drops down last week, this is also due to the impact of some UK political uncertainty snugged at some clear situation. Economy remains uncertain is due to some major factors that is impact of debt crisis in euro zone and risk aversion in economic recovery- said by the King (UK).

Because of getting support from the June hike the Canadian Dollar was one of the strongest commodity currency, Aussie also rebounds because of getting support by the employment report where as Kiwi remains static although the market gets disappointed by the retail sales department. But, on Friday it is seen that after the sell-off in the Forex market the Canadian dollar becomes the biggest loser. These all things certainly affects rate hike of Boc and will lead the global equity in down position.

Now a quick overview of the overall Forex market of last week is the Dollar gets strengthened and reaches a high of 86.28 finally. The crude oil lowers down to 70.32 point. This makes the EURO currency weaker and it drop down to just one level above the past year low of 1.2329. Last week the currency pair of EUR/AUD touches the low of 1.3927 and makes a new record of low points. We are assuming that in this week some important levels could be achieved. As the report says in this week the major focus will on the news from US that it will suggest another dip in real estates market and from UK we are waiting for the news on BoE minutes and BOJ will remain static in this week.