Forex-Metal Daily Analysis – 08/10/10

The sterling and the euro have reached important highs against the greenback. Asian and European trading sessions:
Euro: The EUR/USD pair has breached the psychologically significant 1.40 mark.
According to the expectations, the ECB left the principal rate unchanged at the 1.0% level. The ECB President Jean-Claude Trichet mentioned, that rates remained “appropriate”. 
British Pound: The sterling was under pressure ahead of the Bank of England meeting, where a decision to increase the purchase volume of the state bonds could be taken.
But later on, the GBP/USD rate grew to the $1.5960 mark, due to the released positive UK statistics. In particular, the Industrial production increased for August for 0.3%, compared to the forecasted 0.2%, and the annualized indicator showed growth for 4.2% against the predicted 4.1%.
On Thursday the Bank of England left the principal rate unchanged at the level of 0.5% and the Bank of England asset purchase target was set at the previous level of 200B. As a result of the Bank of England decision, the sterling tested the $1.6000 maximum.
Japanese Yen: The USD/JPY rate dropped to the Y82,60 mark. Minimums were reached at the Y82.24 mark.
Australian Dollar: The Australian dollar rate also demonstrated a rally on Thursday, being supported by the increased prices for metals. The AUD/USD reached an all-times high. The released Australian fundamentals showed, that the national economy was on a correct rehabilitation path, which supports speculations that the principal rate would be increased.
The employment change for September showed increase for 49.5K, compared to the forecasted growth for only 20.0K. At the same time the unemployment rate stayed at the previous level of 5.1%.
Oil: The oil rate also showed growth and reached the $83.87 mark per barrel.
Gold: Gold renewed its historical maximum again at the $1,366 level, and silver showed considerable growth as well. American trading session:
US Dollar: The greenback dropped to its 15-year minimums against the Japanese yen and to 8-months minimums against the euro due to the expectations that the FRS would expand its program of weakening aimed to support the stable economy rehabilitation.