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The finance ministers of the euro area postponed decision on providing the financial aid to Greece until November 26

November 22, 2012, Thursday, 07:15 GMT | 03:15 EST | 12:45 IST | 15:15 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: After more than 11 hours of negotiations, the finance ministers of the euro area did take a decision on the allocation of the next tranche of financial aid to Greece postponing discussions on the issue until November 26. The investors and traders reacted quite negative sending the EUR / USD pair to the deep lows of $ 1.2736 during the Asian session. Later, at the European session, the euro was able to grew against of its competitors and fully restore its positions against the dollar, amid statements of the representatives of Eurogroup : the head of the EU Mr. Juncker, head of the IMF Mr. Lagarde and German Chancellor Ms. Merkel on that that the  European finance ministers still close on allocating of a financial aid package for Greece. The EUR / USD pair rose during the European session to $ 1.2812.

British Pound: The pound rose after publication of the minutes of the Bank of England and the data on financial situation in Britain. The protocol showed that 9 of 9voted to leave rates at 0.5% and 8of 9for leaving the QE program unchanged. As the result, the GBP / USD pair set a high at $ 1.5935 during the European session.

Japanese Yen: The USD / JPY pair rose by updating their monthly highs during the Asian session after Japan's export index fell to a fifth month low. In the period of October, the Merchandise Trade Exports fell to -6.5 versus forecasted -4.9 and compared with the values of the previous month of -10.3. Japan's currency fell also today on speculations that the winner of the elections next month will put pressure on the central bank on increasing the stimulus provided towards economy’s growth. The USD / JPY pair rose to a maximum of Y82.38 during the European session.

New Zealand dollar: After the fall in prices for milk and milk powder, which will ultimately lead to lower government revenues from the export of these products, was announced, the New Zealand dollar came under pressure and update this week lows against its competitors.

American trading session:

Euro: Despite the fact that the Eurogroup could not reach an agreement on the Greek debt, it determined the options available for resolving the situation. So, they are: the purchase of bonds, the significant decrease in interest rates on loans (from 1.5 % to 0.25 %), the postponed interest payments on loans EFSF for 10 years, the return of the ECB profits on Greek loans in Greece, as well as the correction in interest rates and terms of payments of IMF loans. The EUR / USD pair continued rising during the session setting even higher ten yesterday’s level of $ 1.2830.

British Pound: Sterling confirmed fourth session of growth against the dollar on the result of the Bank of England minutes of leaving a program of quantitative easing this month at the same level.

Gold: The agreement on the end of fire in the Middle East has not been reached, and this problem supported the gold prices today as remained safe-haven asset. The December futures price of gold on the COMEX grew to $1731.60 per troy ounce today.

Oil: Prices of Oil rose by 1.3 % after information on the bomb explosion, which occurred near a military headquarters in the commercial center of Israel, where at least 10 people were injured. Note also that the efforts to reach a peace agreement between Israel and Hamas have not been reached last night. The cost of oil was also supported after publication of report on amount of oil in oil stocks which fell by1.47 million barrels to 374.5 million levels for the week ending November 16. January futures price of WTI rose to 87.64 dollars a barrel on the New York Mercantile Exchange.