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Forex-Metal Daily Report - 23/02/10
Written by article default Tuesday, 23 February 2010 19:13
Speculations, regarding the bail out plan for Greece, were major factors that influenced the euro dynamics.
Euro: In the beginning of the trading week the speculations regarding the bail out plan for Greece by the EC had the dominant influence on the euro dynamics. The EC does not confirm any agreement to provide Greece with credits and guarantees by the European countries. And the euro, which managed to consolidate at the beginning of the trading day due to the stock markets growth, started to loose its reached positions.
Therefore, the pair EUR/USD dropped from the reached maximums of $1.3650 to $1.3600.
US Dollar: The speculations regarding the fact that the principal rates would not be increased by the FRS in the nearest future due to the negative situation with the US labor market, pressure the American dollar.
At the same time, the positive US fundamentals, which were published on Monday, could not render support to the US dollar. The Chicago Fed Nat Activity Index for January turned out to be above the forecast and above the previous level as well: its factual level of 0.02 against the expected level of – 0.19.
British Pound: The GBP/USD pair traded in the range of $1.5350 - $1.5530.
Japanese Yen: As a shelter-currency, the Japanese yen consolidated against the euro due to the concerns regarding the uncertain situation with Greece. The yen showed a temporary strengthening against the US dollar, thanks to the speculations regarding the principal rates FRS decisions.
The USD/JPY pair traded in the range of Y92.10 - Y91.50.
Oil: The oil traded in the range of $79.45 - $80.50 per barrel. The prices dropped a little due to the profit fixation by the investors.
Gold: The gold rate grew to $1,124.20 per ounce due to the US dollar instability.