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Hi, I’m Martin Smith and this is your UFX Markets Week in Review. Today, we will cover
some of the major events of the past week and discuss how they impact the global currency
markets. The euro reached its lowest level against
the US dollar in almost two weeks as the International Monetary Fund cut its growth forecasts. The
euro declined after Standard and Poor’s cut Spain’s credit rating and then increased
on speculation that Spain will seek aid, spurring a stimulus program. European leaders will
hold a two-day summit in Brussels on October the 18th. The Managing Director of the IMF
stated that Greece should be given two years to meet fiscal targets and that recommended
debt reductions are needed before a 130 billion euro bailout of the nation can proceed. The
Federal Reserve began a third round of debt purchases to spur the US economy and the European
Central Bank announced an unlimited bond-purchase program to stem the debt crisis in the euro
zone. The euro was last trading at the level of
1.2949 against the US dollar, which is an increase of 0.20%.
The Australian dollar rose as gains in commodity prices increased demand for the currency and
on speculation that China, the nation’s largest trading partner, will take steps to
stimulate slowing economic expansion. The Chinese economy grew 7.6 percent in the second
quarter from a year earlier, which is the least in three years.
The Australian dollar was last seen trading at the level of 1.0230 against the US dollar,
which is a decrease of -0.25%. Oil declined after the International Energy
Agency reduced its forecast for global demand saying that slower economic growth could limit
fuel consumption. Prices fell after the IEA reduced outlooks for 2012 and 2013 by 100,000
barrels a day each from a month earlier. The Oil price increased previously as rising Middle
East tensions heightened concern that supplies will be disrupted and as US consumer confidence
unexpectedly rose. Oil was last trading at the level of 91.86
a barrel against the US dollar, which is a decrease of
-0.23%. Gold declined, its biggest daily drop in more
than two months as improving consumer sentiment in the USA and jobs data increased speculation
that the Federal Reserve might curb the monetary stimulus that has boosted Gold prices. The
Gold price fell after data indicated that US consumer sentiment unexpectedly rose to
a five-year high. Weekly US jobless claims indicated a surprising drop, with increased
evidence about a stronger labor market after the unemployment rate fell to 7.8 percent.
Gold was trading at the level of 1,753.68 an ounce last Friday, which is a decrease
of -0.76%. Well, that is all the time we have for today.
I hope you’ve enjoyed this week’s review and you'll join us next week. Until then,
be sure to visit us at UFXMarkets.com for all of your online trading needs. For UFXMarkets,
I’m Martin Smith. Good luck and happy trading.