Forex-Metal Daily Analysis - 03/08/2011

Forex-Metal

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Jul 12, 2010
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Euro reaches its 11-months low against the greenback.

Asian and European trading session:
Euro: Euro fell against major currencies amid rising yields on government bonds in Italy, which increased fears of further spread of the debt crisis in the EU against the background of slowing global economic growth.

The EUR/USD pair continued to fall from the $1.4280 area and showed the session lows at $1.4150.

The released today Euro-zone Producer price index dropped from 6.2% to the expected level of 5.9%, which reinforced market confidence that the ECB would leave the interest rate unchanged at the meeting on Thursday.

US Dollar: Today’s demand for the dollar was limited on concerns that the agreement between the US President Obama and Congress leaders to increase the national debt ceiling and to reduce expenses would result in the slowing down of the economic rehabilitation rate. House of Representatives approved a project to raise debt limit by at least $ 2.1 trillion and to cut expenses from the budget for $2.4 trillion.
British Pound: The GBP/USD dropped from $1.6330 to $1.6260.
Japanese Yen: The yen retreated on Tuesday, due to speculations that Japanese authorities intervene in currency markets. The USD/JPY tested the Y77.15 level, then recovered to Y77.36 during the European session.

Australian Dollar: Australian dollar decreased after today's RBA meeting results, when the interest rate was left unchanged at the previous level of 4.75%.

American trading session:
Euro: The euro reached its 11-months low against the US dollar level on concerns that slowing U.S. economy will negatively affect the economies of other countries.
Swiss Franc: The Swiss franc again rewrote the historical maximum against the greenback. The released strong statistical data supported the national currency.
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