The dollar softened against the world’s major currencies on Tuesday on better-than-expected trade data. Investors continued to avoid the greenback ahead of the Federal Reserve’s last monetary policy meeting of the year, as expectations continued to build the Fed will keep policy loose.
While, Profit takers sent gold prices falling in U.S. trading on Tuesday. The yellow metal gained in recent sessions on expectations that the Federal Reserve will stick with its ultra-loose monetary policies that weaken the dollar to spur recovery.
- The Australian dollar slipped lower against on Tuesday morning, after the release of downbeat economic data from Australia, while the pair was trading near to a 12 week high against the U.S. dollar, boosted by news of a financial aid deal for Greece and positive economic data from the euro zone, while investors eyed the outcome of the Federal Reserve’s policy meeting this week.
- The euro shot up against the dollar on Tuesday after the U.S. reported that its trade deficit swelled less than expected in October, which fueled demand for higher-yielding currencies and equities.
- The pound was trading close to a three-day high against the U.S. dollar on Tuesday, boosted by news of a financial aid deal for Greece and positive economic data from the euro zone, while investors eyed the outcome of the Federal Reserve’s policy meeting this week.
- The U.S. dollar was little changed against the yen on Tuesday, as investors adopted a wait-and-see approach ahead of the conclusion of the Federal Reserve’s policy meeting, while expectations for more easing by the Bank of Japan remained intact.
- Gold futures were lower on Tuesday, but losses were limited by expectations for more easing measures by the Federal Reserve, which would support demand for the precious metal as a hedge against inflation.
TO download Complete Report; CLICK: Forex and Gold Daily Report 12 December 2012