Forex-Metal Daily Report – 08/07/10
Sharp employment growth in Australia boosted investors’ optimism.
Asian and European trading sessions
Euro: Thursday saw continued growth of the euro, supported by the speculations regarding the possibility that stress test results might turn out better than expected. Therefore, the market participants’ willingness to take risks grew. The IMF forecast of the increased global economy growth rate to 4,6% against the previous level of 4,2% supported the high-risk currencies as well. The EUR/USD rate increased to $1.2684 mark.
The ECB left the interest rate at the previous level of 1.00%.
Japanese Yen: The yen rate decreased as safe haven currencies dropped against the background of the Asian stock markets growth.
Australian Dollar: The released employment change in Australia for June increased for 45.9 thousand against the growth for only 15 thousand. The unemployment rate dropped to 5.1%. These fundamentals boosted the investors’ willingness to take risks. Today the Australian dollar was the best performing major currency against the greenback.
British Pound: Following the euro, the sterling rate increased as well. The GBP/USD reached the $1.5240 mark. According to the expectations the Bank of England announced the principal rate unchanged at the level of 0.50%.
Oil: The oil rate also showed its maximums and almost reached the $75.00 per barrel level.
Gold: The gold prices also increased to $1,199.60 per ounce.
American trading session
US Dollar: Some positive US fundamentals supported the risk appetites of the market participants as well. The released initial jobless claims dropped to 454 thousand against the forecasted level of 460 thousand. The US stock markets showed growth as well.
Euro: At the press-conference, the ECB President, Jean-Claude Trichet, stated that the Euro-zone economy was strong enough regardless of some investors’ concerns. According to the experts’ opinion, the ECB President tried to introduce some confidence and to support the market participants’ optimism.
