Euro lower on Spanish, Greek woes

and United States dollar-yen pair all because of the risk-off atmosphere.
The market will surely buy dollars in the short to medium term given the fundamentals surrounding Europe and China.
When the market plunged on Friday, daily bearish divergences were triggered.
That meant there was no end to the bears hurting global equities and the euro as Spanish and Greek woes pushed the single currency lower.
The euro declined to trade at 1,2126 against the dollar, inched lower against the sterling pound to trade at 78,07 pence per euro and extended losses against the yen to touch 95,09 yen.
The market will remain jittery as long as Spain and Greece woes remain unsolved.
What is driving the markets is the continued saga in the euro-area and in particular the travails of Spain and Greece and also the fact that this will stretch out as far as France and Italy.
The markets are facing a lot of negative news particularly from Europe and too much uncertainty.
A deepening crisis and a second quarter GDP numbers from China will definitely hurt demand for raw materials mainly commodities.
The yen rose by 0,7 percent against the euro mostly supported by regional news amid Greek concerns that they may exit the block and also fail to receive any bailouts.
The yen was trading at 95,09 yen to the euro as a flight to safety bids increased pushing currencies like the yen and the dollar much higher.
The yen weakened against the dollar by 0,2 percent to touch 78,073.
In London, the sterling pound pared losses against the euro and dollar amid concern European crisis is deepening.
The sterling pound fell by 0,5 percent against the dollar to trade at US$1,5520 and fell by 0,4 percent to the euro trading at 78,073.
Generally, the United Kingdom economy is on a drag with consumer confidence at its lowest pushing the government to stimulate the economy.
In Switzerland the Swiss franc gained against the euro on financial turmoil amid deepening crisis in the euro-area.
The Swiss franc touched 1,2009 to the euro but weakened against the US dollar as the dollar heads for parity against the Swiss franc.
The Swiss franc was 0,6 percent weaker trading at 99,05 US cents. In Australia, the Aussie dollar remains under pressure as eurozone concerns take centre stage together with a slowdown in China.
Rising risk aversion combined with a negative global growth is fairly bad for commodity currencies like the Australia dollar.
All this has brought a shift across currency markets to favour the US dollar as Aussie dollar weakened slightly by 0,3 percent to touch US$1,0308.
Risk sentiment is very fragile and very volatile and we are likely to see the Aussie dollar, Rand, New Zealand dollar, Canadian dollar and Norwegian kroner follow trends on the equities markets.
This week sees Australian inflation data being released by the Reserve Bank of Australia and any bad news will push the market to short the Aussie dollar and its biggest level could be $1,02 this week alone.
South African Markets
The rand weakened against the dollar and could be heading for its weakest level in three weeks as concern increased on renewed crisis in the euro area.
The market sentiment is turning towards a weaker rand as those fears in the eurozone continue to push investors out of emerging markets like South Africa exiting all because of risk aversion as risk appetite under performs.
Another driver could be that month-end dollar demand traders are reducing net longs in rand assets.
The rand, which follows the euro, fell by 1,05 percent against the dollar to trade at 8,4204 per dollar.
Commodity markets
Gold declined on weaker GDP numbers from China, which continues to hurt demand.
The bullion also lost its shine a strong dollar thesis as risk aversion as investors build positions in the dollar.
The bullion was trading at US$1574,90 an ounce. Crude oil tumbled by US$3 per barrel as global demand weakens with China’s growth rate slowing down to 7,4 percent.