Forex

The dollar rose against most major currencies in anticipation of the decision regarding the debt limit of U.S

Asian and European trading sessions:

Euro: The euro was under pressure today. It fell against the dollar and other major currencies after the publication of number of economic data of the Euro union countries. So, the results of German GDP were quite pessimistic: index rose by 0.7 % in 2012 versus 0.8 % forecasted and 3.0 % for the previous period. Italian CPI rose only by 2.3% in December against 2.5 % the previous month and the forecasted 2.4%. In addition, the data on the November trade surplus in the Eurozone showed an increase from € 10.2 billion to € 13.7 million versus € 10.0 billion. As the result, the EUR / USD pair fell to a new intraday low of $ 1.3308 during the European session.

U.S. Dollar: Dollar rebounded from the lows against its rivals and broke a three-day decline against the euro amid the weakness of the Asian stock indices, which indicates a decreased demand for risk. The speech of Federal Reserve Chairman Ben Bernanke in Michigan, where the Fed chief made ??it clear that he is in favor of maintaining loose monetary policy to support economic growth did not help to risky assets to grow and did not provide any pressure on the American currency.

British Pound: The GBP / USD pair after trading in a range of $ 1.6065/92 during the Asian session dropped after publication of the data on inflation, according to which the annual inflation rate in December demonstrated unchanged 2.7% marl for the third month in a row. The result of CPI once again confirmed the fears of the Bank of England on the fact that the price pressure still exist despite the weak economy. The monthly consumer price index rose by 0.3% to 0.5 % in December which corresponded to the forecast of economists. The GBP / USD pair approached to the resistance of $ 1.6032 during the European session.

Japanese Yen: The yen strengthened today as investors used current technical overbought situation as a good opportunity to lock some profits after last two months of the application of the new government provoked monster move of the yen by more than 10 % against the U.S. dollar. The currency rose against all major currencies after the comments of the Japanese economy minister Akira Amari, who considered further decline of the yen as “dangerous” for to the Japanese economy. The USD / JPY pair fell to a new intraday low of Y88.25 during the European session.

American trading session:

U.S. Dollar: The market participants were buying the greenback today as a safe asset on the background of still pending decision on the issue of limits of government debt, the resolving of which in negative way can seriously harm the economy. The U.S. Treasury Secretary Timothy Geithner said yesterday that the debt limit was reached on December 31,2012, and the amount of “emergency funds ", which are now used by countries to pay the bills, will last only until the beginning of March.

Swiss franc: The Swiss franc reached the level of €1.24 for the first time since December 7, 2011as there were more and more signs that the debt crisis in Europe is waning. The Swiss franc is used as the safe haven currency.

Gold: Meanwhile, more and more experts say that from a technical point of view, the situation has changed for the better for the Gold and now is the time to fully consider buying the metal. The February futures price of gold rose today to 1684.80 dollars per ounce on COMEX supported also by first comments of Fed Chairman Ben Bernanke.

Oil: The February futures price of WTI oil fell to 93.21 dollars a barrel on the NYMEX today on fears that negotiations on the debt limit could damage the U.S. economy.