The dollar softened against the world’s major global currencies on Friday amid a risk-on trading session after German business confidence figures beat expectations, which enticed investors out of the safety of the greenback.
Gold prices rose in U.S. trading on Friday after German confidence data beat expectations and sparked demand for risk, which came at the greenback’s expense.
- AUD/USD posted some gains at the end of the trading week, closing at 1.0460. The Australian dollar received a lift late in the week from encouraging Chinese data. Chinese Flash Manufacturing PMI expanded for the first time in 13 months, and increased Chinese production means more demand for Australian raw materials.
- EUR/USD made impressive gains on high hopes for a resolution in the Greek crisis. After breaking back into the previous high channel. Disagreements between the IMF and the Eurogroup over Greece’s long term targets sent the sides back to the drawing board, but they seem to be cooking something.
- GBP/USD broke out of narrow range trading as the pair gained over once cent on the week. The pair pushed above the 1.60 line, closing at 1.6032. GBP/USD pushed higher, bolstered by some solid numbers out of the UK last week. The Public Sector deficit was down sharply, and GDP and Mortgage Approvals.
- Dollar/yen continued its rally, reaching a new 7 month high. The strong words from LDP candidate Shinzo Abe about fiscal and monetary expansion certainly weakens the yen. Last week The Bank of Japan concluded its policy meeting with a unanimous vote to keep interest rates and asset purchases unchanged, following two months of expansion of the asset buying program.
- Gold’s gains came as the U.S. dollar dropped to a three-week low against the U.S. dollar after Greece said the International Monetary Fund had relaxed its debt-cutting target for the country, suggesting lenders were closer to a deal for a vital aid tranche to be paid. On the week, gold futures rallied 2.3%.
To download complete report; CLICK: Forex and Gold Daily Report 26 November 2012