FXstreet.com (Barcelona) - Pacific currencies end a mostly positive week today, except for the New Zealand dollar. Earlier week losses were reversed by an increase in commodities prices such as gold (that rose nicely this week and quotes around $912) and oil, that is close to regain the $ 52.00 a barrel still under weekly opening at $ 53.60, and an increase in risk appetite that trigger since past Thursday a massive sell off of dollars.
USD/JPY has fallen 2.30% so far this week from Monday opening price at 99.32 to the currently 97.02. EUR/JPY declines 0.32% from 129.19 on open on Monday to the currently 128.76. GBP/JPY dropped 2.76 after opening 146.69 on Monday to be closing at 142.67 today Friday.
Commodity pairs are apreciationg, USD/CAD has fallen 0.39% on the week after opening at 1.2157 and reach 1.2505, currently the pair is trading just above 1.2100. AUD/USD is rising 0.29% from opening weekly price action at 0.7196 and touch 0.6953 level, the lowest in three-weeks. NZD/USD has advance 0.76% so far this week from opening price at 0.5673 on Monday to the currently 0.5720.
Valeria Bednarik, FXstreet.com collaborator, says: Japanese Yen remains the overall winner of the week, after breaking under mayor supports against dollar, pretty much close to change the longer term bias in the pair if break under 96.50 zone. Some support in the pair could come from some Yen selling flows coming from Japanese investment trusts, making foreign currency denominated investments, that will be launched in the near term. Nikkei 225 closed a choppy week on the red side, having lost around 150 points since past Monday opening.
On the other hand, Saxo Bank Strategy Team affirms: With Crude Oil and Gold being in the spotlight this week, especially against purchasing news out of china, we still need to keep our feet firmly planted on the ground as we take a look at the facts. Looking at the raw data on Crude Oil provided by the EIA, it is very hard to be supportive of a bullish price action for the near term. Crude Oil, Distillate's, Gasoline and Propane stocks all reflect a much higher cyclical average than previously seen for this time of the year. This is underpinned by above average production level and Crude Oil days of supply.
Saxo bank conludes: Taking this into consideration, these types of builds would not be a cause for concern, provided of course, that we are in a situation where demand is on the increase. According to the IEA, Global demand is now forecast at 83.4 million barrels per day, 2.4 million less than 2008. The pace of contraction is close to early 1980s levels, with a growing consensus that economic and oil demand recovery will be deferred to 2010.
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