Market news
23.12.2010, 10:50

EU focus: China support steadies euro, outlook shaky into 2011

The euro steadied against the dollar and the Swiss franc on Thursday, helped by supportive comments from China, but analysts said the outlook for the single currency was shaky, with fresh losses expected into 2011.

Liquidity was at a premium in currency markets ahead of year-end, with traders saying flows were having a bigger impact on price than fundamentals.
A Chinese Foreign Ministry spokeswoman said China was willing to help countries in the euro zone return to economic health and would support the International Monetary Fund bailout package for the bloc.
A Portuguese newspaper report on Wednesday suggested China was ready to buy significant amounts of Portuguese debt to try to instil confidence in the country's ailing economy.
But the single currency's outlook remained shaky at best and more losses into 2011 are seen likely as the euro zone debt crisis looks set to drag on.
"We expect further weakness for the euro by the end of the first quarter of 2011, and in the near term a break of the 200-day moving average will be important," said Elsa Lignos, currency strategist at RBC Capital Markets. "As long as there are periphery concerns in the euro zone, a lower euro/Swiss is very hard to fight," Lignos said.
Investors have been flocking to the safe-haven status of the Swiss franc and shifting out of euros on worries that the euro zone debt crisis will rumble on.
"Our next target for EURCHF is 1.2400," BNP Paribas strategists said. "The CHF is currently driven by capital rather than trade flows and thus remains well supported against the EUR as deposit inflows continue."
The Australian dollar was back at parity against the greenback thanks to optimism about the global economy, which has supported commodity prices.

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location