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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 declined versus the US Dollar for
the first time in three weeks as indications of slowing global economic growth increased
concern about the European sovereign debt crisis, weakening demand for riskier assets.
The Euro fell after Germany’s economy ministry reported that the outlook for increased growth
was fading and that the financial crisis that started in Greece almost three years ago has
spread. Economists in a European Central Bank survey lowered their 2013 growth forecast
to 0.6 percent from 1 percent. During the past week the currency increased
after the ECB’s, Mario Draghi, reported that officials are working on a plan to purchase
government bonds to manage the crisis and that details will be released in the coming
weeks. The Euro was last trading at the level of
1.2287 against the US Dollar, which is a decrease of
-0.14%. The Canadian Dollar fell versus the US Dollar
for the first time in six days, breaking its longest winning streak since December as payrolls
unexpectedly lost 30, 400 jobs last July. The currency gained for a fifth consecutive
week versus its US counterpart on speculation that growth will be sustained even after the
economy lost jobs last July. The Governor of the Bank of Canada, Mark Carney, said that
economic growth could lead to higher interest rates.
The Canadian Dollar was last seen trading at the level of 0.9908 against the US Dollar,
which is a decrease of -0.01%. The British Pound increased against the Greenback
after weakening previously on a report indicating that UK producer prices stalled last month.
The Governor of the Bank of England, Mervyn King, lowered expectations about a pending
rate cut arguing that this could cause harm to certain financial institutions.
The British Pound was trading at the level of 1.5685 last Friday, which is an increase
of 0.31%. Gold traders are bullish on increasing speculation
that central banks will need to do more to bolster economic growth.
Gold was last trading at 1,619.97 an ounce, which is an increase of 0.19%.
Crude Oil declined as China’s export growth slowed and the International Energy Agency
cut demand forecasts on signs that the global economic recovery is slowing down.
Crude Oil was trading at the level of 92.87 last Friday, which is a decrease of -0.52%.
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.