U.S. Dollar: The dollar pulled back sharply and covered all its early losses against the major currencies as risk appetite started to wane and the U.S. market indices moved to negative territory. The currency was also supported by the published data today that showed that the orders for durable goods rose by 9.9 % in September versus forecasts of increase by 7.5 % and after falling 13.1% in August. The rating agency Fitch confirmed that the negative outlook on the U.S. credit rating at AAA will be unlikely changed until the end of 2013.
Gold: Due to a significant increase in demand for gold in India, which is the largest importer of gold in the world and the fact that other investors started to enter to long positions being attracted by low prices, the Gold futures retreated from a seven-week low and were able to grow by $ 11.12 to $1717.80 per troy ounce on COMEX today.
Silver: November futures price of silver rose to $ 32. 26 on COMEX today.
Oil: The Oil futures moved into positive territory after five consecutive sessions of falls. They were driven by stronger than expected economic data from Britain GDP as well as on increase of volumes of Durable goods in U.S. The cost of December futures for U.S. light crude oil, WTI closed at $86.13 per barrel on the NYMEX
Asian and European trading sessions:
Euro: The euro was able to continue pulling upwards from the deep lows of the previous day andthe EUR / USD pair strengthened above the previous day's highs reaching the $1.3020 level at the European session. However, it could not stay there for long and pulled back to lows of $ 1.2975 against the background of weak economic statistics. Indeed, the volume of consumer credit in the Eurozone continued to fall in September, reflecting a decline of 0.8% in year to year term versus -0.6% in August. The growth rate of the M3 monetary aggregate in the region slowed decline to 3.0% from 3.1 % in the previous period and 3.1% of expected forecasts.
U.S. Dollar: The dollar index fell to 79.75. The demand for the dollar was limited due to yesterday’s announce of the plans of the Federal Reserve on continuing to buy securities in the third round of quantitative easing which aims to depress the high rate of the U.S. currency. The Fed noted also the modest growth of the U.S. economy and the continuing high level of unemployment in the country.
British Pound: The British pound rose to a week high against the U.S. dollar, the GBP / USD pair even jumped with small gap after the release of the UK GDP was announced. The result was higher than expected and reinforced hopes that the economy is recovering. The preliminary data showed that UK GDP in the 3rd quarter increased by 1% compare with forecasts of 0.6 %. The GBP / USD pair rocketed to $ 1.6141at the European session.
Japanese Yen: The USD / JPY pair rose to a new high of Y80.20 during the European session. The yen weakened against all major currencies in anticipation of the next meeting of the Bank of Japan, which will take place next week. The weak economic data from the country put pressure on the Bank of Japan, which at the upcoming meeting will likely to reduce the economic outlook and may announce further easing of its monetary politics. The government of Japan plans to add about 200 billion yen ($ 2.5 billion) in economy, without going into the details of the source of these funds.
New Zealand dollar: After the Reserve Bank of New Zealand decided to keep the base interest rate unchanged at 2.5%, the New Zealand dollar grew against its competitors. The new president of the Reserve Bank, Mr. Grime Wheeler noted in his statement that “the global economy is still weak and although the market outlook earlier this year has already begun to improve, the future of the world economy is still not optimistic”.
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