The euro appreciated against most of its major counterparts as the IMF expanded its lending facilities to assist nations in short-term liquidity needs. Carlos Pina, the former Treasury Secretary of Portugal suggested that the country may need EUR 20 to 25 billion more to support public companies that have lost access to the capital markets. The Spanish bond auction was well covered, however at a cost, as 3-month bills’ yield was more than double at 5.11% compared to 2.29% in October. Bundesbank President Weidmann reiterated that the ECB cannot be the lender of last resort and that rising yields in the bond markets should be seen as an incentive for nations to reform. Versus the US dollar, the single currency rose to 1.3518 from 1.3482. Against the Swiss franc, the euro dropped to 1.2347 from 1.2376.

The US dollar produced mixed results against a basket of currencies as the 3rd quarter GDP was revised down to 2% from 2.5%. FOMC voting member Kocherlakota said that tools for wide market intervention may be handy if eurozone ongoing instability threatens the US economy. He also noted that recent data suggested the economy is not likely to fall into recession, but there are significant downside risks to growth. Against the Japanese yen, the greenback rose to 76.97 from 76.92. Versus the Swiss franc, the US dollar declined to 0.9133 from 0.9176, on a day that the franc appreciated against all its major counterparts.

The Australian dollar slid slightly to 0.9848 from 0.9850 against the US dollar, having traded within 0.9812 and 0.9898. The British pound rose to 1.5646 from 1.5638, versus the US dollar as Bank of England’s Tucker voiced his concern on drained confidence towards UK’s real economy and the financial markets.

Oil prices rebounded to 97.46 dollars a barrel from 96.54. Gold rose to 1701.15 dollars an ounce from 1677.78. Silver advanced to 32.655 dollars an ounce from 31.443.

Outlook PivotPreference1Sentiment2
 EURUSD1.3540SHORT @ 1.354062% of deals buy EUR
 USDJPY77.20SHORT @ 77.2029% of deals buy USD
 GBPUSD1.5690SHORT @ 1.569065% of deals buy GBP
 AUDUSD0.9835SHORT @ 0.983583% of deals buy AUD
 GOLD1695LONG @ 169562% of deals buy GOLD
 OIL97.50SHORT @ 97.5054% of deals buy OIL

 

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

 

CalendarCurrencyTime (GMT)EventForecast
 EUR10:00Industrial New Orders for September
-2.5%
 USD13:30Durable Goods Orders for October
-1.0%
 USD13:30Unemployemnt Claims for past week
390 k
EquitiesEUROPE US ASIA3
 FTSE 100-0.30% S&P 500-0.41% NIKKEI-0.40%
 DAX-1.22% DJIA-0.46% HIS-1.97%
 CAC-0.84% NASDAQ-0.07% CSI 300-0.99%

 

3 at the time of writing