forex-Metal Daily Report – 07/07/10
Released negative fundamentals confirm the slow-down of the global economy rehabilitation rate. Demand for the shelter-currencies rises.
Asian and European trading sessions
Euro: Demand for the high-risk currencies reduced. According to the released fundamentals, the factory orders in Germany for May dropped for 0.5% unexpectedly when the forecast showed growth for 0.3%.
The EUR/USD rate dropped below the $1,2600 mark.
Oil: The oil traded above the $72 mark per barrel in the morning trading session.
Japanese Yen: The concerns over the slow-down of the global economy rehabilitation rate supported the Japanese yen as a safe haven currency on Wednesday morning. The yen strengthened against its major competitors.
The USD/JPY pair decreased to the Y87,20 range.
Australian Dollar: The published data in Australia on Tuesday also supported the negative sentiments attitudes in the market. The AiG Perf of Construction index for June showed a considerable decrease. As a result the market participants’ uncertainty grew.
British Pound: The GBP/USD rate followed the euro drop and showed minimums at the $1,5100 level.
Gold: The gold rate dropped at European session to the 6-week low level at $1186 per ounce due to profit taking.
American trading session
US Dollar: The American session showed some change as the risk appetites shifted. The signs of the US economy rehabilitation supported the growth rate of such currencies as Australian, Canadian and New-Zealand dollars. The stock markets growth influenced the drop of the US dollar rate as well.
Oil: The oil prices showed growth to the level of $73.75 per barrel.
British Pound: As the safe haven currencies started to loose their ground, the sterling strengthened. The pound was also supported since the announcement of the British government released its emergency budget aimed to reduce the budget deficit.
