Forex-Metal Daily Analysis - 15/12/2011

[Forex-Metal]

Falling of World’s stock indices stimulated demand for safe assets.


Asian and European trading sessions:
Euro: European countries were preparing to sell bonds on the background of the deteriorating situation of the debt crisis in the EU region. The EUR/USD pair consolidated at $1.3030 level during the Asian trading session. At the auction, despite the high demand for Italian bonds, the average yield was 6.47% vs. 6.29 for a similar previous release. The EUR / USD couple dropped under $ 1.3000 at end of the European session against the persistence of concerns about worsening debt crisis in EU.

US Dollar: The dollar accelerated its bullish trend against major currencies which it had started even before yesterday’s FOMC meeting. Federal Reserve, despite the optimistic assessment of the American economy, also noted the " significant hidden risks."

British Pound: The GBP/USD couple traded flat during Asian session. The published data on the labor market in the UK, which showed that in November unemployment rate remained at 5.0% when expectations of its growth were 5,1% supported the currency and the GBP / USD pair established its today’s high $1.5530 level.

Japanese Yen: The USD / JPY rose above $ Y78.00 and traded at its daily highs of Y78.10 during the European trading session.

Australian Dollar: The Australian dollar fell in trading on Wednesday and matched parity with U.S. dollar. Again, the reason was the increased nervousness of market participants due to the European debt crisis.


American trading session:
British Pound: Investors were considered the British pound as a relatively safe asset: therefore, the currency rose against its competitors.

Oil: World oil prices fell sharply on Wednesday. For the first time since 2008 the Organization of the Petroleum Exporting Countries (OPEC) at the meeting on 14 December decided to raise quotas for hydrocarbons production. In details, OPEC decided to increase the quota for the production from 24.845 million bpd to 30 million barrels / day. The WTI oil futures fell by more than five dollars and closed below $ 95 a barrel.

Gold: Gold prices suffered today also negative day and closed at $1576 level mark.

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