US Dollar Countering the Session Dips

The US dollar which is measured by the dollar index had lost ground and was at the level of 80.85. The end of the European session saw some improvement in that area. The meeting to be held tomorrow will probably sanction a loan to Greece.
 
Nov. 25, 2012 - PRLog -- USD

USD loses ground


The US dollar which is measured by the dollar index had lost ground and was at the level of 80.85. The end of the European session saw some improvement in that area. The meeting to be held tomorrow will probably sanction a loan to Greece. There are also indications of solution to come out from the fiscal cliff negotiations which are making the traders buy some of the riskier assets. The index is now at a loss of 0.36% and is at 80.91. The supports for the index lie at 80.75, 80.60 and 80.40 respectively. The resistance levels on the other hand are at 81.20, 81.30 and 81.45 respectively.

EUR

Clouds clear on the issue of Greece aid


The finance ministers of the Euro zone are likely to allow another tranche of monetary aid to Greece, though money might not flow till December. After the completion of all the reforms required on part of Greece the officials are positive that the loan will be sanctioned soon enough. The individual ministers are quite dispersed in their opinions but a joint solution looks possible. Greece had received aid in February from the IMF and the euro zone but the back to back parliamentary elections ruined its reforms towards improvement of the economy. Due to this reason Greece has to prove its commitment towards economic reforms before another set of loans was allowed. The IMF and euro zone want to make sure that the debt of Greece must come to a sustainable range of 120% the gross domestic product.

YEN

The fall in the Japanese Yen might be short term
 

The major Forex currency pairs were tight due to the minimization of liquidity ahead of a US holiday. The Japanese Yen had dipped last week on announcements by leader Shinzo Abe. The Bank of Japan is now backing its policy claiming the comments of Abe unrealistic and derogatory towards the BOJ’s plan of action. The Bank of Japan has decided not to alter its policy on any political pressure. A reversal is thus expected also considering he looming U.S. fiscal cliff. A placid reaction might be due to a half capacity market expected due to a U.S. holiday.

CRUDE OIL

Crude oils falls awaits U.S. data


Oil prices took a dip when traders claimed profit from a $2 increase per barrel on Monday due to the Israel – Palestine conflict and the hopes on a solution of the fiscal cliff issue in the U.S. The sweet crude futures traded at $89.08 per barrel which is down by $0.20. Brent crude also fell 39 cents to $111.31. The ample supplies were able to outweigh the effect of tensions due to the Israel and Palestine. Concerns over the state of the European economy also had its effect on the prices of crude. Investors await the halt in the fighting due to the pressure from the world which led to a ceasefire in Gaza. The continuum of the conflict was in no one’s favor according to world leaders.

Visit http://www.forexminute.com for more news and analysis.
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