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Hi, I’m … 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 declined versus the US Dollar as Spanish bonds fell, causing 10-year yields
to move to the highest level in six weeks as a euro zone report indicated that the region’s
economy contracted in the third quarter, pushing it into recession. Greece has been given an
additional two years to reach budget-deficit goals for its bailout program.
The US Treasury Secretary, Timothy Geithner stated that he’s confident that an agreement
on avoiding the fiscal cliff can be concluded within weeks after White House discussions
were held between President Barack Obama and leaders of the US congress. Geithner said
that a deal must be reached soon to prevent further damaging of consumer confidence.
The euro was last trading at the level of 1.2740, which is a decrease of -0.31%.
The Japanese Yen declined to its lowest level in more than six months versus the US Dollar
on speculation that Japanese elections to be held next month could result in the election
of an opposition party that advocates more forceful monetary stimulus policy. The Dollar
increased on speculation that President Barack Obama and congressional lawmakers will not
be able to avoid the fiscal cliff, which is more than $600 billion of federal spending
cuts and tax increases that will take place at the start of next year unless Congress
acts soon. A failure to reach an agreement risks pushing the US back into a recession.
The Yen was last trading at the level of 81.30, which is an increase of 0.17%.
The British Pound declined against the Euro and the dollar this week as the Bank of England
reported that UK growth could remain slow, increasing speculation about further stimulus
required to boost the economy. A report indicated that Britain’s retails sales declined more
last month than economists forecast, contributing to signs that the economy is struggling to
recover. The Pound was last trading at 1.5882, which
is an increase of 0.11%. In Commodities, the Oil price rose on concern
that the fighting between Israel and Hamas could escalate into a broader conflict that
would threaten Middle East crude shipments. Oil was last trading at the level of 86.92
a barrel which is an increase of 1.22%. 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 …. Good luck and happy trading.