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If parliament approved the austerity plan, the EU and the IMF will approve aid package for Greece. New Democracy Party and its coalition partner ecpectation narrowly won over the budget plan so as to secure the position of Greece in the euro zone at least for a while. Observed so far pairing EURUSD fell -0.44% at 1.2778, after reaching its lowest point at 1.2768 and intraday high levels daily at 1.2841.

Anxiety Greece is still a major factor dragging down EURUSD today, even likely fall into the range of 1:24 to 1:27 until the end of the year. Opportunities rise EURUSD likely triggered by profit-taking if Obama won re-election of U.S. President Tuesday.

Greece Euro Anxious to Get Help

The euro fell to its lowest level in nearly 8 weeks against the dollar on speculation Greece will be difficult to get a bailout fund, the risk for the future of Greece in the euro bloc. The euro weakened against all major currencies after Greek Prime Minister Antonis Samaras yesterday promised that the salary and pension cuts it proposes will be the last as he tried to gain political support for policies that would ensure the sustainability of Greek sovereign. “All the negative factors lining up for the euro,” said Neil Mellor, a strategic foreign currency strategist at Bank of New York Mellon Corp.. in London. “It remains unclear how the voting will take place and we are still not sure if the voting was going well will have a positive impact for Greece and the euro zone.”

Forex Still Focused On U.S. Elections

The foreign exchange market this week’s U.S. presidential election fell on a Tuesday, which helped determine the outcome of the election is the fate of the fiscal gap, government regulations and policies of the Fed going forward. Issues fiscal gap consists of government spending programs and tax cuts are scheduled to expire at the end of this year, has the potential to send the U.S. economy back on track recession if U.S. policy makers failed to reach agreement draw up new laws.

Presidential and legislative election results this time certainly can determine the U.S. fiscal gap debate, but whoever the winner of the U.S. Presidential candidates deadlock in the legislature a more important role with fluctuations in major currencies. In addition, the results of the U.S. elections could also impact on the direction of the U.S. central bank’s monetary policy, which has so far made a purchase of bonds and weaken the U.S. dollar due to higher supply-related dollar stimulus, it is likely to reverse direction if Mitt Romney was elected, as he give signal that would be The Fed’s new governor is a more aggressive in tightening monetary policy rather than monetary easing at this time. Furthermore bergesr also focus on ECB monetary policy meeting on Thursday, although there has been no change in monetary policy expectations, but investors are still waiting for confirmation bailout Spain.

Some Uncertainties haunt Euro

The euro sank to its lowest in nearly two-month high versus the U.S. dollar on Monday as uncertainty about the outbreak of the next disbursement of bailout for Greece stage. Investors also look extra cautious ahead of the U.S. presidential election on Tuesday. EURUSD is currently offered in the range of 1.2785 or about 0.2% below the closing price on Friday, after touching the lowest level at 1.2777 daily. Concerns over Greece weigh on the currency the 17-nation bloc earlier this week, ahead of the parliamentary vote on the plan of tax increases and cuts in new budget required by Troika. Failure to meet these requirements will threaten bailout next stage, which is indispensable Athens to avoid bankruptcy.

“Some traders seem to also start looking further indication of the weakening euro, after trading in the range of 1:28 to 1:32 that has curb euro since mid-September,” said Michael Derks, chief strategist at FxPro. “Dollar bullish movement also needs to be addressed with care, Obama’s victory is likely to trigger some profit taking on Wednesday.” U.S. Presidential election process will begin on Tuesday, the latest poll shows support for the thin sound differences between President Barack Obama and Mitt Romney.

Malaysian palm oil palm oil contract fell by more than 3% to its lowest level in more than three weeks Monday, as traders continued to fret over high inventories in Malaysia. The main producer of crude oil, Saudi Arabia has raised oil prices for buyers from Asia in November as much as 20 cents, said the government-owned company, Aramco.

German Chancellor Angela Merkel said the European sovereign debt crisis will last at least 5 years or more.
Sharp Corp., the worst performing stock, move down in Tokyo after estimating a loss of $ 5.6 billion and said there were a number of questionable debt with efforts to survive. The credit status of the company is included in a “junk” by Fitch Ratings.

Asia Market Despite Negative Pretty Optimistic

Until the afternoon session at the beginning of the week (Monday, 05/11) in general Asian market still appeared to move in the negative territory mainly because of the attitude carried over selling investors who do this weekend including the selling happens on Wall Street. And investors seem to reduce activity at risk as market participants are now looking forward to the certainty of the U.S. presidential election this week. Even data manpower – Non-farm payrolls and U.S. factory orders that appear improved above expectations, unable to stem the negative market sentiment for profit-taking.

In Asia, the Nikkei – Japan appears corrected to 9000 broken down psychologically as investors dumped riskier assets ahead of the emergence of a number of the results of the American election. But the Nikkei was able constrained due to weakening the yen weakened and Toyota Motor Corp. stock rebounds. that shot up to 2.2% after the auto giant NHK said it plans to increase its operational profit forecast.

While the exchanges in Hong Kong’s Hang Seng also degraded because dragged other Asian indexes fell and Wall St. now. which sank at the weekend. However, a number of buying stocks that look cheap as possible will have the stock color that will help limit the further weakening of the index. Investor sentiment today was quite positive after the data of non-manufacturing activity soared to the level of China’s PMI 55.5 in October, from 54.3 previously, further confirmed that China’s economy growing gradually recover.

Stimulants Need Strong Euro

The EUR / USD this morning activities are still in the range of 1.2824. The euro does not seem to have enough power to stay away from low levels. Exchange rate recorded has fallen 1.6% from current levels the market opened early last week. The weakening euro came two days before the U.S. presidential election.

Valeria Bednarik, chief analyst at Fxstreet.com said “Momentum is bearish if the currency of view the one hour chart still looks strong despite the currency has moved in oversold level. While 4 hour chart also confirms currency movements still tend to be weak, “explains the analyst. “Aussie if the key support level has reached the level 1.2800 at 1.2745 (38.2% retracement) and 1.2610. While the strong resistance level at 1.2880 Aussie. ” Support levels at 1.2790 and 1.2745 while resistance levels at 1.2840, 1.2880, and 1.2910.