Forex

The overall negative on markets damaged an appetite for taking risks today

Asian and European trading sessions:

Euro: The International rating agency Moody's Investors Service after the market close on Monday, noticing the deterioration in liquidity and increased dependence on short-term loans, decided to downgrade the credit rating of Catalonia and the other four autonomous regions of Spain by one or two points. The euro fell against its competitors and the EUR / USD pair fell to $ 1.3050. The downtrend was also supported by the published today Spain GDP performance which resulted decline by 0.4% in quarter to quarter term and 1.7% in year to year term. Furthermore, the single currency weakened after the Spanish newspaper El Confidencial confirmed that the Government of the European Union announced that the budget deficit target will not be reached this year. The EUR / USD pair fell to a new low of $ 1.2998 during the European session.

U.S. Dollar: The dollar got support today by the speculations on the results of started a scheduled meeting of the Federal Reserve System. Although the most of the signals were received from the last meeting of Federal Reserve happened last month, the Fed decision usually has a strong influence on the dynamics of the market. It will be the first time since the start of a new phase of quantitative easing program commenced in September.

British Pound: The GBP / USD pair traded in a narrow range of $ 1.6001-$ 1.6022 during the Asian session and fell to a new low of $ 1.5976 on the European one. The currency dropped even did not take into account that the report of Loans for House Purchase showed that the number of approved mortgage loans in UK rose last month to the highest level since April. The report of British Bankers recorded that the index rose in September to 31,175 from 30,683 in August and versus forecasts of 30,840.

Australian and New Zealand dollar: The risky assets, higher-yielding currencies like AUD and NZD weakened today as the global equities markets and commodity prices fell.

American trading session:

Japanese Yen: The yen rose against most major currencies, as some of American companies’ earnings reports showed that the financial results were below analysts' estimates, adding evidence that the global economy is slowing down. The issue damaged an appetite to risks.

U.S Dollar: The dollar index rose by 0.5 % above 80.10 on negative which came after the publication of the Richmond Fed manufacturing index that fell in October more than it was expected.

Gold: November futures of gold dropped today to $1703.00 per troy ounce level on COMEX. The gold prices were under pressure and dropped to its six-week low against the dollar as the dollar strengthened and stock markets fall.

Oil: December futures price of WTI dropped to $85.76 per barrel on the New York Mercantile Exchange. The Oil investors were focused on the weak global economy performances and its impact on oil demand thus silently reacted on probability of Iran's threat, which may halt exports of oil, if the West countries will apply more sanctions against the country.