The euro recorded loses against most of its major counterparts as Germany experienced an unsuccessful bund sale, the worst since the inception of the euro. This ironically came a day after Bundesbank’s 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. The question now is what nations with low, unattractive yields should do. Versus the US dollar, the single currency dived to 1.3343 from 1.3517. Against the Swiss franc, the euro dropped to 1.2274 from 1.2348. Mario Monti, the Italian PM, will meet with Merkel and Sarcozy today, where he is expected to illustrate his view on reforming Italy without hurting growth.

The US dollar appreciated against a basket of currencies as a string of economic data came out better than expected, and the German bund sale outcome pushed investors towards the dollar’s safety. Against the Japanese yen, the greenback rose to 77.27 from 76.98. Versus the Swiss franc, the US dollar advanced to 0.9198 from 0.9134. Thin liquidity and exaggerated moves should be expected today due to the Thanksgiving bank holiday.

The Australian dollar plunged to 0.9696 from 0.9847 against the US dollar, as investors continued their risk sell off. The British pound plummeted to 1.5519 from 1.5645, versus the US dollar. Bloomberg reported that Japanese shift their funds from German bunds to British gilts and it would be very interesting to see how this will be played out in the FX field.

Oil prices dropped to 95.47 dollars a barrel from 97.38. Gold retraced to 1690.13 dollars an ounce from 1701.23. Silver followed suit, declining to 31.7575 dollars an ounce from 32.6510.

 

OutlookPivotPreference1Sentiment2
EURUSD1.3430SHORT @ 1.343060% of deals buy EUR
USDJPY77.35SHORT @ 77.3573% of deals buy USD
GBPUSD1.5610SHORT @ 1.561064% of deals buy GBP
AUDUSD0.9810SHORT @ 0.981079% of deals buy AUD
GOLD1712
SHORT @ 171265% of deals buy GOLD
OIL96.90SHORT @ 96.9052% of deals buy OIL

 

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

 

CalendarCurrencyTime (GMT)EventForecast
EUR07:00German GDP for the 3rd quarter0.5%
EUR09:00German Ifo Business Climate for November
105.3
GBP09:30Brittish GDP for the 3rd quarter
0.5%
EquitiesEUROPEUSASIA3
FTSE 100-1.29%S&P 500-2.21%NIKKEI-1.80%
DAX-1.44%DJIA-2.05%HIS0.27%
CAC-1.68%NASDAQ-2.43%CSI 3000.18%

 

3 at the time of writing