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Forex-Metal Daily Report - 22/07/10
Written by article default Thursday, 22 July 2010 13:45
The euro drops as some negative stress-test results become known to the public.Asian and European trading sessions.
Euro: Market participants are waiting for the results of the ECB stress-test with increased emphasis. Some speculations over the released information that the German bank Hypo Real Estate did not pass the test, immediately influenced on the euro dynamics, and the rate dropped. Therefore, the EUR/USD rate showed minimums in the range of $1,2791.
US Dollar: Positive quarterly corporate reports were released on Wednesday morning. Strong reports of Morgan Stanley, Wells Fargo, Coca-cola and Apple turned out to be above the expectations of the experts. The greenback rallied against the major currencies.
British Pound: The GBP/USD pair set its trading morning minimums around the $1,5200 level.
Japanese Yen: During the morning trading the yen showed some strengthening as concerns over the condition of the European banks increased. The USD/JPY rate dropped to the Y87,00 mark. The investors’ risk appetite reduced and the safe haven currencies strengthened.
Australian Dollar: The increased concerns that the slow-down of the world economy rehabilitation rate would influence the next RBA decision regarding the interest rate resulted in a drop of the Australian dollar rate against the US dollar.
Oil: The oil prices were set at the level of $77.56 per barrel.
American trading session:
US Dollar: The Fed Chairman Ben Bernanke delivered his semi-annual monetary policy report to the Senate Banking Committee today. He stated that economic forecasts stayed “unusually uncertain”. As a result, the US stock markets dropped.
British Pound: The sterling decreased against the US dollar as the Bank of England intended to widen the measures of economic stimulation aimed to rehabilitate the UK economy.
Oil: The increased oil inventories level resulted in the drop of the oil rate to the $77.25 mark per barrel.