The euro in its trading session seemed to have risen earlier today to a level of 1.3341 that reached that highest price ever since last of Tuesday’s session but however it did not manage to keep its head above the 1.3300 mark. The pair is now slowing moving to its daily lows which is triggered at 1.3222.

At present the trading pair now has a trading level of around 1.3265/69 which is about 0.19% over and above the opening price.

With the downgrade of Spain’s credit rating there seems to be no stop to the drop in credit rating in the euro zone. This took place among the fears of the contagion that are abound adding to the already risk reluctant environment. As a result of all this downgrade the dollar as well as yen seems to be drawing itself up across the boards.

On the downside however the next support level seems to have gotten itself onto a level of 1.5134 and also a level of 1.5096.

On the upside however there could be the next resistance levels that could be listed at a level of 1.502 and again at 1.5240

The greenback seen a slump against the euro and the trading pair of the EUR/USD had climbed to a percent of 0.23 and reached a level of 1.3206 and this took place after the opposition party of Germany’s parliament had mentioned that the IMF Managing Director Dominique Strauss-Kahn said that the rescue package that would be given to Greece would amount to about EUR 100 – 120 billion Euro and this would be released over a period of 3 years. This information was released by Reuters.

The French Prime minister Francois Fillion on Wednesday mentioned that the only way to prevent yourself from speculating against the financial turmoil in Greece would be if you decide on a package at the earliest.

In the meantime the dollar also fell against the Swiss franc and the USD/CHF trading pair had fallen to about 0.22% to get to a level of 1.0855. The greenback did not seem to do well against the AUD and its New Zealand counterparts. The AUD/USD had surged to about 0.78% to get to 0.9226 while the USD/CAD had fallen to 0.47% to get to a level of 1.0129 while the NZD/USD had moved up to 0.71% to get a level of 07164.

The euro fell to about $1.3143 which was the lowest since April 2009, this was according to Reuters. The dollar on the other hand seemed to be having a field day and was at a 11 month high against a few currencies against Greece’s debt problems could result in some kind of risk aversion and this would only get the Euro stocks even lower.

The euro however did not do well and was surprised by the Greek government’s bond yields and this could even get their spreads over the existing German benchmarks to a new record, and this would come about the day when the ratings agency Standard & Poor’s cut Greek debts to a new low level and even downgraded Portugal in return.

According to a few analysts the downgrade in Portugal would result in wider credit risks in the euro zone, and this could create some more cracks in the euro system and then even continue battle against the single currency.

According to the currency strategist at Societe Generale, Phyllis Papadavid who said, “The euro is going to remain under pressure given a lack of clarity on the euro zone outlook – whether there will be more contagion to other euro zone economies, and what concrete structural reforms are going to take place in Greece.”

The dollar had risen against the Euro and the trading pair of the EUR/USD had moved down by 0.59% and managed to reach a level of 1.3303 which was after Germany’s junior coalition party mentioned that Berlin was not sure enough to leave behind the Greece bailout, which would inturn bring about fears that the state that was debt ridden would not be about to secure some kind of financial aid that would be in time to avoid any kind of default.

The greenback had also moved ahead against the sterling and the trading pair of the GBP/USD had faled to about 0.77% to reach a level of 1.5338 after it had the opinion polls that showed that the UK election scene could also produce a coalition government that would be short of a political strength that would cut down on the budged deficit of Britain.

On the other hand the dollar had risen as compared to the Swiss franc and with the trading pair of the USD/CHF had gained a 0.51% to get to a level of 1.0783.

The trading pair of the AUD/USD had reached a level of 0.9232 during the early trading session in the European trade, this was the lowest it had reached since Friday, the pair then managed to consolidate itself around 0.9239 where it had shred 0.32%. The trading pair was to find some kind of short term support at 0.9157 which was the low on last Monday and a resistance level of 0.9382 which was highest since April 12.

The AUD also saw a drop against the greenback although it upbeat on the Australian producer price inflation had been released. During the earlier parts of the trading day the official data had shown that the price of the service and goods that were sold by Australian producers had increased at a quicker level than what it was at the first quarter of the trade.

The AUD also fallen as compared to the yen though during Tuesdays trading and the trading pair of the AUD/JPY went down to about 0.57% to come to about 86.6.

The trading pair of the EUR/USD had risen from the regular lows of about 1.3277 and could be contributed because of the data that was released by the Conference Board, which is the research group, so that it would get to a level of 1.3325 during the European trade while it shed itself at 0.43%.

The trading pair was to find its support at a level of 1.3201, which was the low it had reached on Friday and the lowest in one year, with a resistance level of 1.3692 which was the highest since April 12.

During the early European trade on Tuesday the euro had fallen as against the greenback and this was after Germany’s junior coalition party had made a mention that they were not very certain about backing Greece, and this bought about a few more fears about Greece who is currently under debts that will not secure the aid in time so as to avoid any kind of default.

Against the yen the euro was down as well the EUR/JPY shed about 1.01% to get to a level of 124.44

According to the report that was released by the National Association of Realtors who also mentioned that the number of sales had increased b y6.8% and this was a seasonally adjusted annual rate of 5.35 million for the month, this was an increase from Feb’s 5.01 million and it was a figure that was revised from a low of 5.02 million.

A few of the economists had expected that the figure for March would be at around 5.3 million. The association had even added that the number of sales for the month of March was about 16.1% above the 4.61 million unit level of what was in March 2009.

Lawrence Yun who is the chief economist of the group had in his statement said that it was truly was very encouraging to see that the broad home sales recovery which was from all parts of the country, and this showed two underlying trends. He said, “Sales have been above year ago levels for nine straight months, and inventory has trended down from year- ago levels for 20 months running.”

He continued to say, “The home buyer tax credit has been a resounding success as these underlying trends point to a broad stabilization in home prices. This is preserving perhaps USD 1 trillion in largely middle class housing wealth that may have been wiped out without the housing stimulus measure.”

If the euro zone wants to look at a stable economy then they will have to help Greece get out of its economic crisis. However they need to bring about stricter rules as well so that no similar future crisis would come about, this was said by the French Economy Minister Christine Lagarde for a newspaper.

On Friday, Greece had to accept the huge market pressure that was coming down on them and they appealed to their European partners and the IMF for emergency loans, this was to be the first financial rescue of the euro zone member.

The French paper Journal du Dimanche had put up a question asking it was indulgent to support Greece instead of taking them off the euro zone.

However she was quoted in the Sunday papers saying, “It’s a cocktail of indulgence and great strictness. We want to stabilize. But that doesn’t prevent us from being firm, and we will need to watch the result very carefully.”

It was upto the French government to think of a rescue plan and Lagarde only wished that the lawmakers would make the right decision.

She said, “With its incorrect data and unsuitable economic policies, Greece hasn’t honored its commitments. We will need stricter control mechanism to make sure we don’t fall into a bottomless pit. All that will be the mission of the European Commission and the IMF.”

The trading pair of the USD/CAD had reached a level of 0.993 during Wednesdays trade and this was the lowest it had reached ever since June 2ns 2008. The pair then went back up really slowing to a level of 0.9988 where it close the trading week on Friday. The pair is said to reach to a support level of 0.9823 which was the lowest of May 29 2008 and its resistance level was at 1.0213 which was the highest last Monday.

Canada will publish reports about the gross domestic product next week which will also show the product price inflations. Mark Carney the governor of Bank of Canada will also be talking about the number of public engagements.

In the mean time the U.S. Federal Reserve will be making a few interesting decisions that will be followed by the very minutely watched statement. Ben Bernanke the chairman of the Fed also said, that they were all set to testify in Washington. Also up next week is the all important economic data which is all due to be published in the United States and this would be on the Unemployment claims, GDP as well as consumer confidence.