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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 fell versus the US dollar last Friday
after risk appetite declined, as investors speculate over a report indicating that US
home resales fell in September, indicating that a recovery in the housing sector in the
USA is far from complete recovery. The euro was last trading at the level of
1.3023 against the US Dollar which is a decrease of
-0.28%. The British Pound declined for a fourth week
versus the US Dollar, although it made some gains last Friday. This is the longest stretch
of declines for the British Pound since June, after the Central Bank policy maker, David
Miles, stated that the UK economy is not recovering as well as he’d hoped for. The minutes of
the Bank of England’s October meeting indicated that policy makers were divided on the need
for further stimulus to boost the UK economy as reports indicated that gross domestic product
rose 0.6 percent in the third quarter. The British Pound was last trading at the
level of 1.6003 against the dollar, which is a decrease of -0.24%.
The Canadian Dollar decreased against the US Dollar by the most since May as a lower
than expected rise in consumer prices increased speculation that the Central Bank will put
less emphasis on raising policy rates and as Crude Oil, the nation’s largest export
declined. Investor risk aversion increased after the Spanish Prime Minister, Mariano
Rajoy, spoke after a two day European Union summit in Brussels. He stated that Spain does
not feel under pressure to request a bailout, increasing concern that the European Union’s
debt crisis will be prolonged. The Canadian Dollar was last trading at the
level of 0.9933, against the dollar, which is an increase of 0.85%.
In Commodities, the Oil price declined the most in two weeks on concern about economic
growth. Crude prices fell as euro zone leaders failed to discuss further aid for Spain at
a summit in Brussels as the euro weakened versus against the dollar amid speculation
that the debt crisis is worsening. Oil consumption in the USA declined to a four-year low last
month on economic weakness, according to the American Petroleum Institute in Washington.
Oil was last trading at the level of 90.44 a barrel against the US dollar, which is a
decrease of -2.26%.
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.