Thursday, December 6, 2012

AJAX FINANCIAL : USD – Dollar Reverses Gains vs. Yen as Risk Aversion Hits Marketplace

Economic News
USD – Dollar Reverses Gains vs. Yen as Risk Aversion Hits Marketplace
After shooting up close to 50 pips against the Japanese yen during the Asian session yesterday, the USD turned bearish during mid-day trading, as risk-aversion due to disappointing euro-zone and US news hit the marketplace. The greenback fell around 25 pips, eventually trading as low as 82.04. The USD had slightly better luck against the Canadian dollar, and was able to gain close to 20 pips during the first part of the day to eventually peak at 0.9930.
Today, the main piece of US news is likely to be the weekly Unemployment Claims figure, set to be released at 13:30 GMT. Following a worse than expected ADP Non-Farm Employment Change figure, investors will be closely watching today’s news for additional clues as to the current state of the US economic recovery. Should the end result be higher than the expected 382K, the dollar may take losses before Friday’s all important Non-Farm Payrolls report.

Gold – Risk Aversion Turns Gold Bearish
The price of gold fell by more than $12 an ounce during European trading yesterday, as disappointing news out of both the euro-zone and US led to risk aversion in the marketplace. The precious metal fell as low as $1691 before a slight upward correction brought prices back to $1694 by the afternoon session.
Today, gold traders will want to pay attention to news out of the euro-zone and what affect it has on investor risk appetite. Signs of an economic slowdown in the EU could result in gold taking additional losses during the second half of the day.

Crude Oil – Crude Oil Takes Slight Losses Following US News
The price of crude oil took minor losses during European trading yesterday, following the release of a worse than expected US ADP Non-Farm Employment Change which led to speculations that US oil demand may weaken. Overall, the commodity fell just over $0.70 a barrel to trade as low as $88.09.
Today, oil prices are likely to see volatility following the ECB Press Conference at 13:30 GMT. If the press conference signals any improvements in the euro-zone economic recovery, risk taking among investors may result in crude recovering some of yesterday’s losses.

Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us


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