Euro rallies, but under pressure from fighting in Georgia

AFP - 1 hour 14 minutes ago
LONDON (AFP) - - The euro clawed back ground on Monday after hitting a five-month low point against the dollar on concern about fighting between Georgia and Russia, and signs of slowing eurozone growth.

In morning deals, the European single currency stood at 1.5065 dollars after touching 1.4907 in Asian trade. That was the lowest point since February 26 and compared with 1.5013 late in New York on Friday.

Against the Japanese currency on Monday, the dollar slid to 109.73 yen from 110.11, after earlier striking 110.39 -- the highest level since January

In Asian trading earlier on Monday, the dollar had hit a seven-month high point against the yen amid signs the US economic slowdown was spreading to other major economies.
High-yielding currencies such as the Australian dollar and the British pound also fell heavily in earlier Asian trade on Monday.

Sterling sank to 1.9110 dollars -- which was the lowest level since November 2006 -- before bouncing back to 1.9247 in European trade.
Dealers added that the euro was dampened by fading prospects of an interest rate rise by the European Central Bank (ECB) amid growing concerns about the health of the eurozone economies.

The US currency has fallen heavily over the past year as the Federal Reserve slashed interest rates to shore up the US financial markets and economy in the face of a housing slump and credit crunch.

But with concerns now growing that the eurozone and Japan could be heading for recessions, there is speculation that the greenback may have reached a turning point.

In London trade on Monday, the euro changed hands at 1.5065 dollars against 1.5013 late on Friday, at 165.46 yen (165.35), 0.7836 pounds (0.7812) and 1.6209 Swiss francs (1.6239).
The dollar stood at 109.73 yen (110.11) and 1.0747 Swiss francs (1.0816).
The pound was at 1.9247 dollars (1.9209).

On the London Bullion Market, the price of gold rose to 882.05 dollars per ounce from 852.50 dollars late on Friday.

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my opinion:

this piece of news will stregthened euros against the yen. Why ? War causes unstable in economy. With that, the impact will tighten the export of a country manufacturing industry which is closely link to Forex. Thats how i feel.

My bet: buy EUR/JPY....keep buying...