The euro depreciated against most of its major counterparts as Merkel refused to soften her stance towards a joint eurozone bond. There were expectations that Germany would tone down its resistance after it experienced an unsuccessful bund sale on Wednesday, the worst since the inception of the euro. Fitch became the second rating agency to downgrade Portugal’s status to junk. Hungary yesterday asked for IMF help for the second time in 3 years. Versus the US dollar, the single currency dropped to 1.3329 from 1.3344. Against the Swiss franc, the euro remained almost unchanged at 1.2273 from 1.2275.

The US dollar appreciated against a basket of currencies during the Thanksgiving bank holiday, as the meeting between Merkel, Sarcozy and Monti provided no resolution and let investors down. Versus the Swiss franc, the US dollar rose to 0.9206 from 0.9199. Against the Japanese yen, the greenback retraced to 77.17 from 77.26. There are reports citing an S&P official’s comment that a Japanese downgrade “may be right”. Today, the day after Thanksgivings, is called Black Friday – the unofficial start of Christmas shopping - and investors worldwide are comically wondering about its timing.

The Australian dollar rebounded slightly to 0.9702 from 0.9697 against the US dollar, as the ongoing risk-off sentiment that kept the currency subdued was softer. The British pound dropped to 1.5475 from 1.5520, versus the US dollar. Bank of England’s Miles joined a group of policymakers that noted that the central bank can do more quantitative easing if needed.

Oil prices rose to 96.88 dollars a barrel from 95.50. Gold rebounded to 1695.20 dollars an ounce from 1690.01. Silver declined to 31.6275 dollars an ounce from 31.7525.

OutlookPivotPreference1Sentiment2
EURUSD1.3370SHORT @ 1.337064% of deals buy EUR
USDJPY77.10LONG @ 77.1065% of deals buy USD
GBPUSD1.5500SHORT @ 1.550068% of deals buy GBP
AUDUSD0.9810SHORT @ 0.981079% of deals buy AUD
GOLD1702SHORT @ 170269% of deals buy GOLD
OIL97.30SHORT @ 97.3045% of deals buy OIL

 

1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer

 

CalendarCurrencyTime (GMT)EventForecast
EUR07:00German Import Prices for October
-0.1%
EUR09:00Italian Retail Sales for October
-0.2%
CAD16:00Canada's Budget Balance for September
-
EquitiesEUROPEUSASIA3
FTSE 100-0.24%S&P 500holiday-NIKKEI-0.06%
DAX-0.54%DJIAholiday-HIS-1.24%
CAC-0.01%NASDAQholiday-CSI 300-0.94%

 

3 at the time of writing