Forex-Metal Daily Analysis – 20/12/2011

The U.S. dollar rose against most major currencies on the report of the death of leader Kim Jong-IL, the North Korea’s leader.

Asian and European trading sessions:
Euro: From the beginning of the Asian trading session the Euro was falling against the US dollar ahead of auctions of France and Spain bonds. The EUR/USD pair hit its daily low at $1.2980 level. Moreover, the Euro traded negatively due to the rumors of possible credit rates downgrading of some countries of Euro-zone. During the European session the Euro recovered almost all of its previous session loses; the EUR/USD couple strengthened to $1.3032. Market participants waited for the scheduled today meeting of the EU countries finance ministers’, who planned to discuss the possibility of granting by the IMF Union countries the both-sides loans of 200 billion euro. The EUR / USD finished this session traded at 1.3007 area.

US Dollar: The U.S. dollar rose against most major currencies on the report of the death of leader Kim Jong-IL, the North Korea’s leader. Traders jumped to buy the US dollar, the currency with the “safe-haven” status as well as to sell risky currencies and stocks.
British Pound: The GBP / USD pair traded in the $ 1.5464 -$ 1.5522 range. Also, at the market were rumors about the UK, which would not want to participate in granting credits for the IMF (International Monetary Fund).

Japanese Yen: The news of the death of leader North Korean leader, Kim Jong-IL and held in this connection test-rocket firing supported Japanese Yen today. The USD / JPY pair, similarly to a rocket, exploded to Y78.15 level, its today’s high.

American trading session:
Euro: The EUR/USD pair traded lower during the American session. One the negative news, which supported its direction, were the report of the European Central Bank, stated that the current payment balance deficit of 17 countries of the euro area in October was 7.5 billion euro, versus with its proficit for September of 2.2 billion euro. The couple went to test its European session’s lows at $1.2986 area. In addition, there are still concerns regarding of lowering of the credit ratings of France, Belgium, Spain, Italy, Slovenia, Cyprus and Ireland.