The dollar softened against the yen on Tuesday as investors bought the Japanese currency amid bottom fishing, ending a sell-off stemming from talk the Bank of Japan will roll out fresh monetary easing measures soon. while The US dollar traded largely flat against most major currencies as investors sold on hopes Spain will seek a bailout, which fueled demand for risk, while others bought the greenback to digest weak third-quarter U.S. earnings.
- The Australian dollar was lower against the U.S. dollar on Monday, after Australia’s government said it will cut spending to help produce a budget surplus this fiscal year, fuelling speculation over a rate cut by the country’s central bank next month.
- The euro found support after Spanish regional election results indicated support for the austerity policies of Prime Minister Mariano Rajoy.
- The pound eased back from the session high against the U.S. dollar on Monday, but remained supported by hopes for a Spanish bailout, while investors looked ahead to U.K. data on third quarter growth later in the week.
- The U.S. dollar rose to a three-month high against the broadly weaker yen on Monday, after weaker-than-forecast Japanese trade data fuelled expectations for more monetary easing by the Bank of Japan later this month.
- Gold futures edged up from the lowest level in six weeks during U.S. morning hours on Monday, as hopes that Spain is moving closer to requesting a bailout supported the euro.
to download Complete report; CLICK: Forex and Gold Daily Report for October 23, 2012