Safe haven demand for the dollar and the yen was underpinned by concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.
while, on the week, gold futures rallied 3%, the biggest weekly advance since the last week of August, as the reelection of incumbent Barack Obama as U.S. President reinforced expectations that the Federal Reserve’s policy of quantitative easing will remain in place.
- The RBA continues to surprise the markets, as it did not lower interest rates, which remained at 3.25%. This gave the Australian dollar a short boost, but the currency surrendered most of these gains by the end of the week. Employment data was strong, as Employment Change was well above the estimate, and the Unemployment Rate dipped to 5.4%.
- EUR/USD had a bad week, losing ground after losing the range. The re-election of Obama combined with no little progress on Greece sent the pair lower. The Greek parliament approved the austerity measures required for another round of bailout funds, but these aren’t guaranteed yet. The European Central Bank kept rates at 0.75% and warned about the economic situation.
- The UK Trade Deficit beat the forecast, but the pound still took a tumble at the end of the week, as US data was positive. In the US, Unemployment Claims continue to fall, and the UoM Consumer Sentiment was higher than forecast.
- Dollar/yen fell as safe haven flows poured into the Japanese yen. The re-election of Obama was eventually greeted with a drop in stock markets and gains for the US dollar and the Japanese yen, with the latter winning against the former
- On the week, gold futures rallied 3%, the biggest weekly advance since the last week of August, as the reelection of incumbent Barack Obama as U.S. President reinforced expectations that the Federal Reserve’s policy of quantitative easing will remain in place.
To Download Complete Report; CLICK: Forex and Gold Daily Report 12 November 2012