Forex-Metal Daily Analysis - 26/08/2011


Master Trader
Jul 12, 2010
Demand for the high-risk assets drops.

Asian and European trading sessions:
Euro: The Euro became stronger despite decrease in an index of Consumer Confidence Survey in Germany. EUR/USD reached $1.4472, moving up from its morning lows at $1.4384. During both sessions the Euro remained trading in the previous day range.
US Dollar: On the background of technical correction from yesterday's growth and revive speculation about a possible announcement of the third round of quantitative easing program at the Conference of the FRS with the heads of the Central banks, scheduled for August 26, the dollar suffered losses against the European currencies.

British Pound: The GBP/USD pair traded in the range from $1.6350 to $1.6401 during both sessions.
Japanese Yen: The USD/JPY pair traded around Y77.00. Growth of the stock indices put pressure on the yen, but during the European session the pair became stronger and traded above the Y77.05 level.
Gold: On the backdrop of the increased risk appetites, which caused fund indices growth in Asia, the price of gold dropped today to its lows at $1725 per ounce.

American trading session:
During the American session the euro fell against the greenback and reduced its growth against the yen on the fears that officials would be forced to impose a ban on short positions in the European stock markets in order to prevent the spreading and intensification of the debt crisis in the region.
By the end of the day the EUR/USD decreased to $1.4330 and the GBP/USD dropped to $1.6250.