The dollar rebounded against most major currencies on Thursday, gaining strength amid a waning risk-on trading session stemming from hopes Spain may be growing closer to seeking a bailout.
While Gold prices gave back earlier gains amid profit-taking during Asian trading on Thursday, as investors looked beyond a Moody’s decision to stick with Spain’s debt ratings.
- The Australian dollar rose to a two-week high against its U.S. counterpart on Wednesday, after positive Australian data and as risk sentiment was boosted by Moody’s decision not to downgrade Spain’s credit rating.
- The euro firmed against the dollar in Asian session on Thursday after groundbreaking on U.S. homes jumped to a four-year high, while growing hopes that Spain will seek a bailout also enticed investors out of the safety of the greenback. Profit taking kept the single currency jumping in and out of positive territory against the U.S. currency.
- The pound held gains against the U.S. dollar on Wednesday, trading close to a two-week high, as sterling remained supported after upbeat U.K. employment data and as positive U.S. housing reports eased concerns over the country’s outlook for economic growth.
- The broadly weaker U.S. dollar eased back from a one-month high against the yen on Wednesday, but losses were limited after ratings agency Moody’s decided not to cut Spain’s credit rating, supporting risk appetite.
- Gold prices gave back earlier gains amid profit-taking during Asian trading on Thursday, as investors looked beyond a Moody’s decision to stick with Spain’s debt ratings.
to download complete report; CLICK: Forex and Gold Daily Report for October 18, 2012