Forex and Gold Daily Report for October 17, 2012

The dollar dropped against most major currencies on Wednesday amid talk Spain may be growing closer to seeking a bailout, which fueled demand for risk. Optimism for a Spanish bailout sparked demand for the euro and other higher yielding assets, which came at the dollar’s expense.

  • The Australian dollar was higher against its U.S. counterpart on Tuesday, after the release of the minutes of the Reserve Bank of Australia’s latest policy meeting, while uncertainty over Spain’s plans to ask for a sovereign bailout remained.
  • The euro rose against the dollar on Wednesday after Moody’s Investors Service confirmed Spain’s Baa3 government bond rating as well as the country’s short-term rating at (P) Prime-3. Moody’s assigned a negative outlook to the rating, though investors went long on the euro.
  • The pound remained moderately higher against the U.S. dollar on Tuesday, as market sentiment found broad support amid specultion over a ‘soft’ bailout for Spain, but gains were limited as the perspective of more easing by the Bank of England weighed.
  • The U.S. dollar hit a one-month high against the yen on Tuesday, as market sentiment improved on the back of better-than-expected U.S. retail sales data and hopes that an upcoming European Union summit will advance plans to tackle the debt crisis in the region.
  • Gold futures traded higher during U.S. afternoon hours Tuesday, bouncing off the lowest level in a month as the U.S. dollar came under pressure on reports Spain was close to obtaining a bail out.Prices advanced by as much as 0.65% earlier in the session to hit a daily high of USD1,748.45 a troy ounce.

To download complete report, CLICK: Forex and Gold Daily Report for October 17, 2012

Newsletter Powered By :