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has continued to fall against the dollar on sentiments that all is not well in the eurozone, boosting demand for haven currencies.
The dollar index continues to surge on weak data in the eurozone.
The big factor is that the eurozone leaders need to jump-start the region but as it stands the future looks bleak and this has spurred some euro selling.

Currently, the market is buying dollars, considering a well managed debt like Australian debt pushing the euro to being sold off.
The euro declined to US$1 3106 from US$1 3387. The yen was little changed at 76,89 per dollar.
The dollar index which tracks the greenback against the currencies of six major US trading partners, climbed to 77,152 after rising to 77,319. Positioning has turned against the euro and news flow isn’t helping as we are seeing investors reducing their net long positions in the euro fleeing to other haven currencies like the dollar and yen which are currently pleasure currencies.

The market believes the ECB response is critical in this week’s meeting to at least bring relief on all eurobond holders.
The Australian dollar slumped on sentiments that the Reserve Bank of Australian signalled that there could be rate cuts to at least cool down inflationary pressures.
That announcement sees a downward pressure on the Aussie dollar.

With the weaker than anticipated global growth the outlook is negative and could weigh on exports and commodities which in turn could weigh on the Aussie dollar as well.
The Aussie dollar fell as low as 94,56 US cents from 95,27 US cents against the dollar.
It also dropped to a 72,95 yen from 73,01 yen. The New Zealand dollar rose 0,7 percent to 75,77 US cents after earlier falling to as low as 74,96 US cents.

It gained 58,07 yen from 57,69 yen. The US growth concerns and the eurozone debt concerns continue to overshadow markets as this continues to put these economies in bearish mode.
The bullion has since advanced to record highs due events happening in and around the eurozone.

Gold continues to be supported by investors seeking to diversify from the volatile flows in equities and currencies. The global economy is entering a new danger zone amid Europe’s debt difficulties.
Looking at such issues in the eurozone, European investor confidence has fallen to its lowest level in more than two years. With what is happening on the markets it’s like pouring cold water on the markets with

exchange rates swinging side ways, it really is frustrating for investors.
Traders are now looking to sell and seek re-entry points especially in the currency markets and also areas of opportunity.

Risk dynamics and commodity performance have proved to favour the US dollar overall performance at the expense of currencies like the Australian dollar, rand, New Zealand dollar and even the Canadian dollar especially in the past week.

Low interest levels in the US make the dollar ideal as a funding currency to buy high-yielding assets elsewhere.
Gold advanced as it touched US$1 674 an ounce on concern global economic growth is slowing down.

Europe’s problems have the capacity to drive the bullion upwards as investors seek to protect their wealth from financial losses. My question is, are we going back to the 2008 financial turmoil where volatile flows in equities and mainstream currencies were money-losing position?

• For more information contact Prodigy Chinanga at [email protected]