The dollar rose against the world’s major global currencies on Friday after U.S. industrial production figures fell short of expectations and diminished demand for higher-yielding assets such as stocks.
While, Gold futures ended Friday’s session little changed, as ongoing fears over the looming fiscal crisis in the U.S. and growing tension in the Middle East kept investors on edge.
- Australian releases were close to the estimates for the most part. Some weak US data put pressure on the pair, which was down slightly on the week.
- EUR/USD dipped to new lows but eventually closed the week at similar levels to the previous week. While Greece avoided an immediate default, but the release of the aid tranche is still awaiting. The euro-zone economies contracted again in the third quarter of 2012, officially entering a recession.
- GBP/USD traded in a narrow range last week, as the pair closed the week virtually unchanged, The UK posted some weak data last week, as unemployment and retail sales numbers were weak. However, US data also looked sluggish, and the GBP/USD was unchanged over the week.
- USD/JPY made a big leap and reached high levels, as Japan is going to elections on December 16th. Note that the Mid East violence is slowing the move of USD/JPY due to safe haven flows into the yen.
- On the week, gold futures retreated 1%, the fifth weekly decline in the past six weeks. Investors also remained concerned over the looming “fiscal cliff” in the U.S., approximately US $ 600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
To download complete report; CLICK: Forex and Gold Daily Report 19 November 2012