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primary driver of the price action.
In Africa, the rand continued to decline as risk sentiments and external shocks still remain a threat for the rand as Europe’s debt continued sapping demand for high-yielding assets.
The rand depreciated 1,4 percent against the dollar as it touched 7,4095 in Johannesburg and trading at 7,4107 in earlier trade.
Everyone is uncertain about what’s going to become of European economies and their ability to govern and control their debt.
Investors are looking for something tangible to diversify away from the euro. The market believes that austerity measures are good for ratings, but in the market they are seen as also undermining the growth outlook.
The euro hit a six-month low on Greece default as pressure mounts on all eurozone leaders to at least map a strategy on how to calm markets and stop this volatility.
Europe’s recovery is fragile and sovereign debt levels will keep rising. The euro reversed earlier losses to trade at US$1,3681 to the dollar from US$1,3567.
Renewed hope came in the wake of a Chinese fund negotiating to buy Italian bonds bringing a rally on the markets. As Napoléon Bonaparte once said: “Let China sleep cause when she wakes up she will definitely shake the world.”
China is going to be a major player in this European debt crisis. The euro depreciated to 86,20 against the pound.
The euro dropped to its lowest levels since 2001 against the yen as speculation is that German Chancellor Angela Merkel is preparing for a Greek default curbed demand for the single currency.
The euro dropped to 105,67 against the yen. As we can see the euro is in a free fall as investors press their panic buttons.
The dollar index which tracks its six trading partners rose to 77,352 up 0,2 percent showing that the dollar has all of a sudden become a safe haven currency amid European concern.
The pound weakened against the dollar as it touched US$1,5862 as the UK economy showed signs of slow growth and renewed fears that Greece might default.
The market has already considered the US dollar assets as buys.
The yen reversed gains against the dollar trading at 77,18 from 77,00.
In Australia the Aussie dollar declined on concern the Greece issue is weighing on the markets as default heightened.
Given that global risk appetite is still low and the Aussie remains under pressure, the bias is in favour of dollar strength, we are also seeing a lot of buying on the dollar, investors taking their money out of high-yielding assets.
The Aussie dollar was facing resistance at US$1,0342 against the dollar, a parabola shape was formed as Aussie rallied to 1,0542 before retesting those resistance levels turned support levels at US$1,0342.
Commodities fell to the lowest in more than two weeks extending losses, as a potential Greek default raised concern that global economic growth is slowing down.
Gold dropped as European concern sent dollar higher against all major currencies.
The bullion was trading at US$1 818 an ounce as safe haven flows fizzled out of the metal into the dollar.
Crude oil fell as investors bet Europe’s debt crisis will limit economic growth. Crude oil was trading at US$86,87 per barrel.

l For more information contact Prodigy Chinanga on 0772753594 or email to [email protected]