Forex

The Japanese Yen weakened again on possibilities of further stimulation of the Japanese economy

Asian and European trading sessions:

Euro: The EUR / USD pair rose during the Asian session, retreating from Friday's low. The European currency was supported by the statements made this weekend by the Minister of Finance of Greece, that his country has fulfilled 90% of what had to be done in order to get the tranche in the amount of E31.5 billion, and if it recognizes by the Troika, Greece will receive needed money soon. However, the demand for the euro was limited by anticipation of the publication of data in the euro area, scheduled for October 23.

The result of the end of the two-day summit Friday in Brussels showed that the EU heads agreed on the creation of a single European banking supervisory authority, which will allow for the eurozone rescue fund to send its capital directly into troubled banks in the region. The two important issues that EU leaders failed to conduct were to define precisely the period when Spain will make a formal request for help and provide with the date of the next tranche of financial assistance for Greece. The euro got support and the EUR / USD pair grew to a new high of $ 1.3077 after announce of the results of the elections in the province of Galicia. The Spanish Prime Minister Mr.Mariano Rajoy was elected there. The news released investors’ concerns about obstacles in applying for international financial assistance for Spain.

Japanese Yen: The USD / JPY pair grew up at the Asian session after during the weekend Economy Minister of Japan Mr. Maehara in an interview on the local TV channel Fuji urged monetary authorities for further stimulation of the Japanese economy, warning of possible downgrade the credit rating of the country. After the publication of current data of exports volumes of Japan, which significantly reduced to the maximum values of the year due to the earthquake in the country, the yen fell again against its competitors. The fact has reinforced the expectations that the central bank will decide soon to expand the asset purchase program. The exports from Japan in September fell by 10.3% in year to year time frame from the August values of decrease by 5.4%. Also, the report on trade balance for September, where the deficit widened to 980.3 billion yen and did meet the expectations of analysts, was as a further evidence of deterioration of the country economic perspectives. The USD / JPY pair was able to climb to Y79.87 area at the European session.

Australian dollar: The Australian dollar came under pressure on early Asian sessions and weakened against most major currencies in anticipations of going to be published this week the report which will put a light on the rate of inflation in the country. The inflation is expected to show the slowest pace in 13 years, providing more opportunities to the country's central bank to cut interest rates.

American trading session:

British Pound: The GBP / USD pair grew to a new high of $ 1.6050 for the first time in three days after a report showed that the number of bankruptcies in the UK industrial business fell in September, while increasing optimism that the economic recovery continues. However, the demand for the currency was limited due to the coming soon meeting of the Bank of England, which is scheduled for November 8.

Canadian dollar: On the speculations that the Bank of Canada on its tomorrow's meeting will not pay close attention to interest rates thus leaves it unchanged, the Canadian dollar continued its downtrend against its rivals.

Gold: The Gold prices grew and were able to recover from the losses incurred in the previous session, where there were recorded a fall to $1713 level. The November futures price of gold on COMEX today raised $ 4.80 and hit $1729.20 per troy ounce level.

Silver: Market participants' attentions were focused on the Federal Reserve's meeting this week and its impact on foreign exchange markets and the financial sector. November futures price of silver on COMEX today rose to $ 32.4 per ounce.

Oil: Prices traded during the day were influenced by news coming from the representative of TransCanada company Mr.James Millar who was telling that the pipeline will resume sending oil to the U.S. probably today after a two-day of delay. The cost of December futures of WTI fell to $88.57 dollars per barrel on the NYMEX today.