The greenback gains as investors sell higher-yielding assets and several policy makers around the world warned the economic recovery was fragile.
- On Thursday, the greenback advanced against all major counterparts amid calls for the U.S. currency to strengthen by leaders gathered in Singapore at a meeting of finance ministers from the Asia-Pacific Economic Cooperation group. The euro traded at 1.4880, up from 1.4820, and the British pound changed hands at 1.6620, up from $1.6515 on profit taking ahead of the weekend.
- The greenback is reversing its gains ahead of a report today that may show Europe's GDP expanded for the first time in six quarters. Economists predict EU's GDP expanded 0.5% in the third quarter from the second, when it contracted 0.2%. The ECB has kept its benchmark interest rate at 1% since May and is lending banks unlimited cash for up to a year to pull Europe out of the recession. President Trichet signaled November 5 the ECB's December offer of 12-month loans to banks will be the last.
- Crude oil fell to as low at $76 a barrel after U.S. Energy Department reported crude inventories rose more than expected by 1.8 million barrels last week and U.S. refinery operating rates fell to the lowest in more than a year. Gold fell to $1100 after testing an all time high of $1123.40 an ounce.
Currency to watch out for: EURUSD & GBPUSD
- The EURUSD pivot point is at 1.4915 with a preference to enter into short positions below 1.4915
- The GBPUSD pivot point is at 1.6650 with a preference to enter into short positions below 1.6650
Today's calendar and market movers:
- EU Flash GDP quarter on quarter expected to rise to 0.5%
- US Trade Balance expected to fall to -$31.65 billion
- US University of Michigan Consumer Sentiment expected to rise to 71.0
- US stocks closed lower on Thursday with the Dow off 0.9%, the S&P off 1.0% and the NASDAQ off 0.8%
- As of 07:30 GMT the Nikkei is trading at -0.35% and the Hang Seng at 0.47%