Forex

The Euro got hammered today by the speech of ECB President, Mr. Draghi

Asian and European trading sessions:

Euro: The reason why the euro fell against almost all traded currencies was today’s speech of European Central Bank President Mr. Mario Draghi, who said that the Eurozone faces risks associated with financial instability. He also mentioned the need for financial reforms and noted that the proposal for establishing a bank union should give to investors a confidence in investing in European assets. The International Monetary Fund has published today a forecast for growth of the economy in the region. Accordingly to provided information, the growth of economy will be much less compare with result of the previous forecast. In addition, the IMF has revised a forecast of global economy and stated that the growth will fall to 3.6% in 2013 (from 3.9%), noting the risk of further serious decline. The EUR / USD dropped to $ 1.2911 at the European session.

British Pound: The result of the report for the manufacturing production of the United Kingdom recorded decline in August more than expected, and showed 1.25 with forecasted -0.7%. Also, contributed to the fall of the asset the industrial production report, which registered a decline of -1.1% against +3.1 % in July, was due to the fact that at the periods of the summer plants are usually closed for maintenance. In addition, the rate of the UK visible trade balance in August sharply rose to 9.844 billion from 7.337 billion the July and the total trade balance showed a deficit of 4.169 billion from 1.705 billion in July. All published results today ??exceeded the forecasts of analysts in negative way. The GBP / USD pair decreased to the $ 1.600 area.

Swiss Franc: The Swiss currency weakened against most major currencies after the State Street Corp (STT) and Bank of New York Mellon Corp (BK) announced that they would charge investors who hold their assets in Danish kroners and Swiss francs at Swiss Banks.

American trading session:

US Dollar: The dollar index rose today by 0.8% to 80.285 values.

Japanese Yen: The USD / JPY pair dropped to Y78.15 on the background of published today information by International Monetary Fund about the weakness of the Eurozone’s and world global economy.

Australian dollar: On speculation that China, which is the largest trading partner of the Australia would continue further to stimulate its economy, the Australian dollar rose today slightly recovering from recent downfall.

Gold: The October futures price of gold fell $1764.8 per ounce on the COMEX today even not taking into account a grown investors’ demand for gold on the background of deteriorating of the economic conditions.

Silver: The Silver price dropped on the COMEX to 33.53 dollars per ounce today.

Oil: The Oil prices grew today as tensions in the Middle East had increased. The November futures price of U.S. light crude oil, WTI rose to $92.89 per barrel on the NYMEX.