Forex

The long-awaited decision on reducing the U.S. government’s spending has been finally made

Asian and European trading sessions:

Euro: The euro traded near 3 -month low against the U.S. dollar in the range of $ 1.3000-28 against the uncertain situation occurred due to obstacles of Italian politicians to form a coalition. The EUR / USD pair fell to the low of $ 1.29805 during the European session.

U.S. Dollar: The dollar index was supported by the published last weekend news on final negotiations between Republicans and Democrats on the budget sequester which ended on Saturday. The long-awaited decision which ultimately was made, unfortunately, did not found any compromise and Mr. Obama had to signed the bill of reducing the government spending by $ 85 billion by the end of this year. However, the president immediately tried to come down all markets saying that the apocalypse will not happen after that.

British Pound: After trading in the range of $ 1.5021-44 during the Asian session, the GBP / USD pair finally found some buyers. The pound strengthened against almost all its rivals amid concerns that the formation of the Government of Italy may be delayed, and the issue will have a negative impact on the recovery of 17 countries of the Euro currency union. In addition, the house prices report for UK in February released today showed that the prices grew, registering the first increase in nine months. The business activity index fell, however, to the level of 46.8 in February compare with 48.7 in January and versus the average analysts’ estimates of growth of the value to the level of 49.2. The report also recorded that the total production has fallen sharply, demonstrating the highest rate of decline over the past 3 years. The number of new orders declined accelerating its pace. The GBP / USD pair grew to $1.5118 during the European session.

Japanese Yen: The yen grew at the Asian session due to the falling of the major stock markets of Asia, caused by the release of negative statistics for the euro area published last week. The yen strengthened even after the next candidate for the Governor of the Bank of Japan, Mr. Kuroda promised a more ease monetary policy in order to overcome deflation in the economy. Mr. Kuroda also said in parliament that the Bank of Japan will do everything possible to end the 15- year period of deflation in Japan. The USD / JPY pair rose to Y93.69 and tested last week high during the European session.

Australian dollar: According to published by the statistical office in Sydney data today, the number of building permits fell from December by 2.4% .The Australian dollar fell as well after the release of this negative statistics of the construction sector, the average economists’ forecasts of which were at gain of 2.8 %.

The Australian dollar fell to near an eight-month low against the U.S. dollar, as the data presented today showed that the number of Building Approvals for the construction or reconstruction of homes and apartments fell in January by 2.4 %, compared with a revised downward fall of 1, 7 % in December and the average forecasted value of this index of increase by 2.8%.


American trading session:

Euro: The euro grew against the dollar to the high level of today’s range amid the mixed regional statistics which were published during the session. The Euro zone’s confidence significantly decreased among investors in March recording its first decline in six months and topping analysts' forecasts. Also, the Sentix investor confidence indicator fell this month to the lowest level since December 2012, the level of -10.6. The annual rate of producer price inflation, at the same time, fully corresponded with the experts forecasts showing slow down in January to the level of 1.9%, compared with 2.1 % the previous month.

Japanese Yen: The yen rose against almost all its major counterparts after the Chinese CSI 300 Index fell to the lowest in two years. The released data showed that the purchasing managers' index (PMI) was 50.1 in February, slightly up from neutral mark, which indicates a lack of growth. The USD / JPY pair dropped to Y93.18 level during the session.

Gold: The Gold prices grew slightly on the support of some buyers at the market of Asia, but strong U.S. economic performance reduced the demand for the gold as a safe investment. The April futures price of gold fell to 1569.40 dollars per ounce on COMEX today.

Oil: The futures price of WTI oil brand fell below $ 90 a barrel, the April futures fell to 89.36 dollars a barrel on the NYMEX, for the first time in more than two months against the negative official data from China, which is the second largest oil consumer in the world.