G-8 leaders push for European crisis resolution

as we saw a whopping US$4 trillion wiped off in the equity markets.
The sterling pound reversed earlier losses against the dollar to touch US$1,5836 having gained by 0,1 percent.

At the moment the market is concerned about the state of Europe as traders and investors look for relative growth differentials rather than anything else and once the dust settles clearly sterling will be on the back foot.
European markets continue to suffer nervous sessions as investors are still unsettled by a downgrade on Spanish banks and political crisis in Greece.
Positions got extended because of all this and we saw emerging markets supporting euro shorts.

Despite a dip in the GBP-Euro currency pair which according to the market the euro is relatively overpriced given the fundamentals as uncertainty in the region lurks.

A bank run is happening in Europe as deposits are being moved from euro to sterling pound that could be a positive for the sterling against the euro.
With all this debacle on Greece the UK has made a contingency plan as the euro-area poses that downside risk. The euro was little changed against the sterling pound though firm trading at 80,92 pence per euro and rose against the dollar by 0,3 percent to touch US$1,2814.

The single-currency advanced against the yen as the Bank of Japan signalled it could expand their balance sheet putting pressure on the yen against its peers.
Euro trimmed down its losses to trade at 101,64 against the yen rose by 1 percent. The dollar rose slightly against the yen to touch 79,32 on Bank of Japan and Chinese comments.

The yen is a currency that does well on geo-political issues and turmoil but that was stopped by Bank of Japan stimulus deal leaving the Swiss franc as the to go haven currency on such issues.
The Swiss franc appreciated against the dollar to trade at 93,73 US cents and was little changed against the euro as it continues to trade in range like bound trade at 1,2011.

For a while traders have been short the Swiss franc and long the yen, and now maybe the time to try and square that position, which is putting selling pressure on the yen and buying pressure on the Swiss franc.
The uncertainty in Europe remains very high, and expectations are all over the place. As a trader take a look at the CHF/yen currency pair.

The Canadian dollar was the second best performer amongst all growth related currencies riding on Chinese data and rally on commodity prices as it rose by 0,9 percent to touch 1,0173.

The Swiss franc appreciated against the dollar to trade at 93,73 US cents and was little changed against the euro as it continues to trade in range like bound trade at 1,2011.

The yen has been the to go currency in the Asian region but was under pressure after that Bank of Japan statement pushing investors into Aussie being driven by Chinese comments. The Aussie dollar advanced to 99,12 US cents as it began its charge towards parity.
South African market

The rand advanced to its strongest level in a week as commodity prices rallied amid Chinese comments. Equity markets are up and growth-sensitive commodity prices have increased, this positive sentiment towards risky assets should provide some support to the rand.
The rand strengthened by 2 percent making the best performer amongst its peers in a week. The rand gained to trade at 8,1700 from its lowest levels of 8,3428.

The rand was little changed against the euro at 10,5377.
Commodity markets
Gold got bids on global debt jitters and rose on fear and uncertainty for two trading sessions in a row. It continues to eclipse the dollar haven demand as Greece has become the wild card to trade at US$1 593,90 an ounce.

Despite the recent rally, the bullion is still in bearish territory having fallen by 16 percent from its September highs of US$1 921 an ounce.
As the market entails it will be wise to buy gold on dips as in the case of last week gold closing Friday’s session at US$1 538,40 an ounce.
Yes, gold will swing between gains and losses and the truth is it outperforms the Zimbabwe Stock Exchange. At the moment investors are looking at positions in the Eur/yen versus a rising gold price. Crude oil was little changed trading at US$92,66 per barrel as bearish economic data in Europe and China is hurting demand for the commodity.

Greece has become the biggest driver for global markets as ECB has reiterated that it won’t give loans to Greek banks as speculation heightens on whether they will stay in the euro.

My chart of the day selling euro on any rallies ahead of the EU summit would be ideal because a head fake is likely and a downside risk in the euro.
Good day.