Forex and Gold Daily Report for November 05, 2012

All major currencies and precious metals fell against the dollar on Friday as investors sought safety in the greenback to see who will win Tuesday’s presidential elections in the U.S. While Gold prices rose on Monday as bottom fishers snapped up nicely priced positions in the yellow metal on sentiments a recent sell off sent the commodity falling too far.

  • AUD/USD was almost unchanged this week closing at 1.0335. Australian data was mixed this past week. Building Approvals was very strong, but this was offset by a drop in New Home Sales. Commodity Prices continues to nosedive, reflecting weak global demand for Australian exports.
  • EUR/USD made a significant move downwards and is now at critical support, as a deal between Greece and the troika seems hard to achieve, and as the US enjoyed a positive jobs report. Not only are the troika and Greece divided on labor reforms, but also from within: the IMF wants euro-zone governments to take a loss, and in Greece, the government is in a fragile situation.
  • GBP/USD lost about 70 points on the week, as the pair closed at 1.6019. UK data was a mixed bag last week. Manufacturing PMI was slightly below the estimate, but this was offset by Construction PMI, which pushed above the critical 50 point level for the first time since August.
  • USD/JPY continued higher for another week, temporarily touching a 6 month high. The move came on more Japanese QE and also on a surge of the dollar across the board. Last week The BOJ enlarged the quantitative easing program by 11 trillion yen in its rate decision meeting while official expectations stood on 10 trillion.
  • Gold futures ended the week at the lowest level in two months (last seen on August 31), as the U.S. dollar rallied following the release of better-than-forecast U.S. non-farm payrolls data. On the week, gold futures declined 2%, the fourth consecutive weekly drop.

 

To download complete report; CLICK: Forex and Gold Daily Report 05 November 2012

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