The euro edged lower during the Asian session and Asian equities dropped with many market players away. Focus remains on an Italian bond auction today and tomorrow and the auctions will be closely watched as Italian yields are still struggling around the 7% level. Versus the greenback, the single currency edged as low as 1.3056 today after it traded in a tight range around 1.3065 yesterday.
The US dollar was trading in a tight range against a basket of currencies in thin post-Christmas trading. Home Price Index and Fed Manufacturing Index data came in lower than expected disappointing investors who were looking for positive signs from the US economy. Consumer Confidence rebounded to 64.5 while 56 was expected. Versus the Japanese yen, the greenback fell to 77.75 today from 78.02 after the US Treasury Department criticized Japan for intervening in the currency markets to stop the yen from rising. In a report to the US Congress, the US Treasury said that rather than intervening to influence the exchange rate, Japan should take steps to help the economy and support the competitiveness of Japanese firms.
The British pound jumped to 1.5702 versus the greenback as thin markets resulted in sharp moves but the pound’s advance was limited. Today the pair is trading at 1.5668.
Oil prices surged above 100 dollars a barrel rising as high as 101.72 from 99.27 on concerns about possible supply disruptions due to rising Middle East tensions. Gold dipped to 1586.15 dollars an ounce from 1604.11. Silver edged lower to 28.58 dollars an ounce from 29.15.
No comments:
Post a Comment