Forex

Spain intended to extend the ban on short selling for three more months. The Euro reacted negatively.

Asian and European trading sessions:

Euro: The reason way the euro fell in early European session was the media report about Spain that intended to extend the ban on short selling for 3 more months which indicated that the authorities are still trying to restore confidence in the domestic market. Also, the report for PMI of Greece showed that the manufacturing sector declined in October from 42.2 to 41.0 points. The EUR / USD pair was pushed down to $ 1.2924 area. However, later the euro rebounded on expectations for positive results of statistics from the manufacturing ISM, employment change and consumer confidence in United States. The EUR / USD pair recovered ??to $ 1.2982 by the end of the session.

British Pound: The pound showed great correlation with the trading dynamics of the euro currency. The GBP / USD pair updated its weekly high strengthening to $ 1.6175 area during the European session. The British currency rose against the dollar despite the fact that in October, the British PMI in the manufacturing sector fell to 45.7 compare with 48.1 for the previous month and expectations of analysts on remaining the rate unchanged.

Japanese Yen: During the Asian session the USD / JPY pair rose above Y80.10 approaching towards new week high. The yen weakened due to the worsened forecasts for the Japanese economy which came out after published today report of Vehicle sales which in October recorded a decline by 9% form 8.1% from previous. Also, the recent disappoint quarterly reports of Japan companies suggested that expectation for upcoming on November 11 the third quarter GDP report would be weak.

Swiss franc: On reports for Swiss PMI which rose from 43.6 to 46.1 with forecasted 44.5 and retail sales that fell from +6.0 % to +5.4 % in September with forecasts of +4.2 %, the Swiss franc fell against its competitors.

Australian dollar: As it was reported by the State Department of Statistics of China and the China Federation of Logistics and Purchasing, the Chinese industry index of purchasing managers for the has grown in October to 50.2 % and exceeded the critical level of 50 %. So, the Australian dollar rose setting a new two-week high against the U.S dollar.

American trading session:

U.S. Dollar: As the number of initial claims for unemployment benefits fell to 363K form from 372K showing its lowest level in three weeks the dollar begun to grow rose against its competitors. Also, the currency was supported by the report of ISM of manufacturing activity which came out positive rising more than expected and thus adding evidence that the American economy is recovering. The dollar index grew up by almost 0.3% to 80.161 today.

British Pound: The pound had a slight correction due to the published today report that showed that house prices in the UK jumped in October. Also today, it became known of rising of the UK economic forecasts for this and next year.

Gold: Due to the growth of the stock markets and an increase of appetite for risky assets, the December futures price of gold showed positive dynamics moving towards to the 1726.70 dollars per troy ounce. However, the prices dropped to $1713 per troy ounce after the published data from the U.S. showed that the number of initial claims for unemployment insurance declined.

Oil: After the Energy Department reported that amount of crude oil in inventories unexpectedly fell by 2.05 million barrels to 373.1 million level last week, the Oil became more expensive by rising to one-week high against the U.S dollar. Also, the asset was supported by positive which happened on stock markets amid increasing optimism that the U.S. economy is accelerating. The December futures price of WTI type of Oil rocketed to 87.40 dollars a barrel on the NYNEX.