Markets continued to focus on negotiations between Democrats and Republicans to avoid a set of spending cuts and tax increases due to come into effect on January 1 if U.S. lawmakers cannot reach an agreement on reducing the budget deficit.
While Gold futures ended week down nearly 2%, as market players continued to monitor negotiations among U.S. lawmakers to avoid the looming “fiscal cliff” crisis.
- AUD/USD traded in a narrow last week, closing at 1.0424.There were some positive figures out of Australia last week, as Private Capital Expenditure beat the estimate and New Home Sales looked sharp. However, this was not enough to enable the Aussie to break out of a narrow range last week.
- EUR/USD tested higher ground but eventually remained almost unchanged as an unconvincing deal was agreed for Greece. however one of the pillars of the agreement, the buyback program, also seems to be unraveling.
- GBP/USD was unchanged over the week, closing just above the 1.60 line, at 1.6011. UK data was generally positive last week, with Preliminary Business Investment and CB Realized Sales easily exceeding the estimates.
- USD/JPY consolidated the big gains made in the previous two weeks. Comments regarding the fiscal cliff have a bigger impact on the pair, as do comments from Japanese politicians towards the December 16th elections.
- Gold futures ended last week down nearly 2%, as market players continued to monitor negotiations among U.S. lawmakers to avoid the looming “fiscal cliff” crisis.
To download complete report; CLICK: Forex and Gold Daily Report 03 December 2012