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The U.S. GDP for the fourth quarter of 2012 year has declined

January 31, 2013, Thursday, 07:57 GMT | 02:57 EST | 12:27 IST | 14:57 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: The EUR / USD pair finally broke the level of $ 1.35 for the first time since December 2011, after the report showed that the level of economic confidence in the region has improved in January more than the analysts had forecasted. The index of economic sentiment in the euro zone showed the third consecutive monthly increase rising to 89.2 from 87.8 in December and approached to the highest level since June 2012. The consumer confidence in January was in line with expectations recording the -23.9 value, and the confidence in the manufacturing sector increased from -14.2 (revised from -14.4) to -13.9  with -13.5 forecasted. As for results of today's auction, the yield on 30-year Bund of Germany was 2.45% vs. 2.34% previously. The EUR / USD pair rose to a new high of $ 1.3563 during the European session.

British Pound: The GBP / USD pair traded in a narrow range of $ 1.5740-60 during the Asian session. The British pound rose, receiving support from the increased risk appetite and exceeded forecast data from the UK in December. The number of approved applications for mortgages rose to 55.8 million from54.00 million in November and the volume of net consumer credits increased to ? 0.6 billion from the previous value of ? 0.1 billion. The GBP / USD pair rose to a new high of $ 1.5797 during the European session.

Japanese Yen: Amid the continuation of the rally in Asian stock markets the yen fell against most major currencies. This month will be the fourth month of decline of the yen - the longest decline since August 2008; in January the Japan currency fell by 4.5% against the dollar. The USD / JPY pair rose to Y91.40 during the European session.

New Zealand dollar: The published today data recorded a rise in the number of building permits in November by 9.4% to 1,566 to it’s the highest level since May 2008. On this positive news the New Zealand dollar rose against its competitors.

American trading session:

U.S. Dollar: The dollar index fell on positive news about the European economic confidence. However, the support for the currency was provided by the negative result of the report on the U.S GDP for the fourth quarter which showed that the U.S. economy has declined. The market also reacted not in dollar’s favor after the decision of Federal Reserve to leave the interest key rate at no change and support its commitment to monetary stimulus measures. The dollar fell to its lowest level since November 2011 against the euro.

Gold: The Gold prices have increased significantly since the news of GDP of U.S. showed the unexpected result. The news led to an increase in purchases of precious metals as a safe-haven asset. The price of gold rose to 1683.50 dollars per ounce on COMEX today.

Oil: The cost of oil fluctuated, due to the previously submitted report which showed expected increase in oil inventories. The pressure on prices was provided by the report from the U.S. Department of Energy which showed that the U.S. economy unexpectedly fell in the fourth quarter. The cost of March futures for WTI rose to 98.10 dollars a barrel on the NYMEX today.