Forex

The ECB provided 489 billion euro to banks for three years period.

By Forex-Metal

Asian and European trading sessions:

Euro: At the beginning of the Asian trading session the Euro rose against the U.S. dollar amid growing optimism about the new refinancing operations for three years period of the European Central Bank (LTRO), the results of which would have been announced today later .The EUR/USD couple grew to $1.3124 level and traded mostly around this area for the rest of the session. In the first half of the European session, the euro rose against major currencies because the announced result of the actual amount was much higher. The ECB agreed to provide 489 billion euro to banks. The EUR/USD pair exploded and ran up to its daily highs at $1.3195 area. However, after hitting this area the pair came down hard. The traders began " selling facts" against which the single currency had completely lost all of today's achievements against the U.S. dollar. According to the report which recorded that the Italian GDP contracted in Q3 by 0.2 % (QoQ) investors got confirmation that the Italian economy is already in recession. Thise statistics pressured the Euro during the European trading session and the EUR/USD couple dropped to $1.3070 area.

British Pound: The GBP/USD pair tested the resistance of $ 1.5765 / 75 during the European trading session. The resistance proved futile and the couple fell below $ 1.5695 area.

Japanese Yen: The USD/JPY had a narrow trading range in both sessions and traded between Y77.70 and Y77.90.

New Zealand: The New Zealand dollar reached a one-week high against the backdrop of increasing demand for risky assets. The trading dynamics for the New Zealand currency had been also favorably impacted after the published yesterday the U.S. and the European economic statistics, which were better than expected.

American trading session:

Euro: The EUR/USD couple fell steeply to $1.3025 area The market participants had been worried that the European Central Bank's measures to support the banking sector would not be enough to stem the deterioration of debt crisis in the EU region.

Japanese Yen: The Japanese Yen fell against the dollar, after the head of the Cabinet of Japan, Mr. Fudzimura said that he expects a temporary slowdown of the Japanese economy.

Oil: The WTI February’s future prices finished closing at $99 per barrel.

Gold: The Gold prices did not have much change compare to its last day and closed at $1614.75 per ounce.