The Dollar weakened once again versus most majors, slightly strengthening only against the Yen, as positive economic data across the globe spurred risk appetite boosting demand for higher-yielding currencies. EUR/USD came near the 1.50 mark once more but failed to break above that psychological level and settled around 1.4950. The Pound also gained against the greenback and managed to sustain trading above 1.66. Currencies tied to commodities strongly advanced as Gold hit a new record high. The Canadian Dollar rallied against its US counterpart as Retail Sales climbed more than forecasted. USD/CAD dropped below 1.06 to linger around 1.0550. With riskier assets on the spotlight the Yen weakened against all of it peers, losing the most versus commodity-linked currencies. USD/JPY edged slightly higher settling below 89 after a choppy trading session.
Commodities
Gold hit a new record once again trading above $1173 as the Dollar weakened but failed to retain the gains retreating back to the $1160 level as a wave of profit-taking kicked in. Same fortune for Silver which after an intraday high of almost $19 dropped back to $18.50 area to end the day in red territory. Crude Oil approached the $80 mark but failed to break above declining sharply to $77.50The Day Ahead
The day will start with important data coming from Germany. The GDP for the largest national economy in Europe is expected to rise 0.7% in the third quarter showing that growth is accelerating. In addition, the IFO Business Climate Index is forecasted to climb to its highest levels in 14 month. Switzerland’s Employment Level and EU Industrial New Orders are also due for release during the European session. The main dish for the day is the stream of US data that will start with its GDP figures due at 13:30 GMT. Consumer Confidence, the House Purchase Price Index and the FOMC Minutes will complete a very busy session. The US GDP revised figures for the third quarter are expected to show that the world’s largest economy expanded at a 2.9% annualized rate, revised downward from the 3.5% estimated last month. The FOMC minutes will also be gathering a great deal of attention as President Bullard of the Federal Reserve Bank of St. Louis suggested last week that the Fed may not raise interest rates until 2012.
Commodities
Gold hit a new record once again trading above $1173 as the Dollar weakened but failed to retain the gains retreating back to the $1160 level as a wave of profit-taking kicked in. Same fortune for Silver which after an intraday high of almost $19 dropped back to $18.50 area to end the day in red territory. Crude Oil approached the $80 mark but failed to break above declining sharply to $77.50The Day Ahead
The day will start with important data coming from Germany. The GDP for the largest national economy in Europe is expected to rise 0.7% in the third quarter showing that growth is accelerating. In addition, the IFO Business Climate Index is forecasted to climb to its highest levels in 14 month. Switzerland’s Employment Level and EU Industrial New Orders are also due for release during the European session. The main dish for the day is the stream of US data that will start with its GDP figures due at 13:30 GMT. Consumer Confidence, the House Purchase Price Index and the FOMC Minutes will complete a very busy session. The US GDP revised figures for the third quarter are expected to show that the world’s largest economy expanded at a 2.9% annualized rate, revised downward from the 3.5% estimated last month. The FOMC minutes will also be gathering a great deal of attention as President Bullard of the Federal Reserve Bank of St. Louis suggested last week that the Fed may not raise interest rates until 2012.
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