Forex-Metal Daily Analysis – 12/11/2010

European budget problems are in the spotlight again.

Asian and European trading sessions:
Euro: European budget problems are in the spotlight again. According to the released information, the European countries are considering the possibility to render additional financial support to Ireland. The released weak Spanish GDP data pressured the euro as well.

The EUR/USD pair was falling below the $1.3750 level.
US Dollar: The released on Thursday positive fundamentals from China supported the rally of the Yuan, and pressured the greenback. The Chinese consumer price index increased for 4.4%, the Producer price index grew for 5.0%, the purchasing price index and the industrial production data increased above expectations.
The G-20 Summit has started in Seoul today, and exchange controls would be discussed there.
Japanese Yen: The USD/JPY pair traded in the range of Y82,00-Y82,40.
Australian Dollar: The Australian employment change increased in October for 29.7K, but at the same time the unemployment rate for October grew to 5.4%, which was above the forecasted level of 5.0% and the previous month’s rate of 5.1%.
Oil: Against the background of the decreased oil inventories data from yesterday, the oil rate grew and reached the level of $88.80 per barrel. During the trading day, the oil prices decreased.

American trading session:
British Pound: The sterling reached its 6-week maximums against the euro today. According to the published information, the Bank of England confirmed, that their bond’ buy-out program would not be extended.
As a result, the GBP/USD pair reached maximums at the level of $1,6180.