Euro: The euro rose against its competitors as the yield of Spanish and Italian bonds dropped to the very low values ??for the first time in last eight months. The news provided some optimism that the debt crisis in the region is weakening. Also, the euro established its new high against the dollar on increased demand for risky assets on optimism about that that the U.S. lawmakers will reach an agreement to avoid the so-called "financial cliff". The EUR / USD couple approached very closely to the level of $1.30 during the European session showing significant growth.
U.S. Dollar: The dollar traded lower against its rivals ??in anticipation of today meeting between U.S. Treasury Secretary Timothy Geithner and top representatives of the Congress on the “fiscal cliff " issue. Also the pressure on dynamics of the currency was provided by the speculations on results of a report on U.S. GDP, which, as it was expected was going to show that the gross domestic product growth will be increased in the third quarter of this year. The dollar index fell today to 80.086.
British Pound: The pound weakened after a report showed that the UK Nationwide House Prices on the monthly base remained unchanged this month, while showing on yearly base a decline by 1.2%. All these results added evidence that the recovery in the country is losing momentum. The GBP / USD pair fell to $ 1.6000 at the beginning of the European session.
Japanese Yen: The yen fell against most major currencies on positive that was happening at the Asian stock markets due to expectations of positive data on the result of the U.S. GDP which in the third quarter was likely to grow at an annual rate of 2.8 % from preliminary figures of an increase of 2 % .The USD / JPY moved to Y82.21area.
American trading session:
Euro: The euro rose against most of the 16 most traded currencies amid falling yields on 10- year Italian government bonds to the lowest level in nearly two years. Also, the business climate index in the euro zone rose in November recorded less than it was forecasted the decline -1.19 points from minus 1.61 points in October. The EUR/USD pair got hammered at the level of $1.3012 which provided a strong technical resistance.
U.S. Dollar: Accordingly the second estimates presented today, the U.S. GDP rose by 2.7 % per annum in the 3rd quarter which was not coincide with the forecasts of 2.8%, yet was the best GDP quarterly growth since 2009. According to the first estimate of GDP the growth was 2.0% per annum. However, the strong growth in inventories and exports forced the Ministry of Commerce to reconsider the estimation of economic growth towards increase.
Gold: After the yesterday’s strongest decrease against the background of approaching the “fiscal cliff” issue the price of gold managed to snap back to around to 1728.20 dollars per troy ounce today on COMEX.
Oil: Oil rose for the first time in four days after the publication of the GDP report and on optimism that U.S. President Barack Obama would come to an agreement with Congress on a new budget. The January futures price of WTI rose to 88.66 dollars a barrel on the NYMEX today.
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