2 Dec 2014
Recap: A commodity world; Dollar on the defensive
FXStreet (San Francisco) - The top headlines on Monday came from commodities as gold and oil made epic turnarounds. The dollar traded on the defensive as it recorded losses against its major competitors.
Oil crude surged over 4% to perform its best day in 2 years after bouncing off $63.74 to peak to $69.50; Gold bounced at 1,142.80 to recover the 1,200 area and to peak to 1,120. US stocks closed down on Monday as investors digested falling oil and gold prices over the weekend plus a poor economic data in China.
In the currency market, the EUR/USD ended almost flat (+0.15%) on the day after declining to 1.2415 but reaching a maximum of 1.2505. The pair remains contained by the 1.2400/1.2520 range. According to Valeria Bednarik from FXStreet, the "first line data later on the week coming from both economies suggest mentioned range will remain in place until then, starting with the ECB monthly economic meeting on Thursday."
The GBP/USD recovered nearly all of its losses on Friday, while the couple ended at 1.5725 (+ 0.52%) after bouncing at 1.5585. The cable traded to the upside amid better than expected UK manufacturing PMI and mortgage approvals. According to Bednarik, "some follow through above 1.5770 should signal further short term advances towards recent highs at 1.5825, with a break above this last probably triggering an upward acceleration up to 1.5860."
On the USD/JPY field, the pair rose to 119.15 early in the day; however it fell amid news from Moody’s that downgraded Japan's sovereign rating from AAA3 to A1. The pair fell to 117.85 before closing at 118.30 (-0.22%).
Bigger movers in Forex were USD/KRW (+1.99%), USD/RUB (+1.10%) and USD/BRL (+1.01%) in the upside; while top bearish performers were USD/NOK (-1.21%), EUR/NOK (-1.08%) and USD/CAD (-0.75%). Special comment to the USD/RUB that is rising 54.75% YTD, 61% since June, amid oild weakness and Ukraine crisis.
Key data:
Moody's cuts Japan's credit rating over heightened uncertainty over fiscal deficit reduction goals
Canada RBC Manufacturing PMI remains unchanged at 55.3 in November
United States Markit Manufacturing PMI down to 54.8 in November from previous 55.9
November 2014 US ISM manufacturing PMI 58.7 vs 57.8 exp
US stocks fell as investors faced news after Thanksgiving weekend
Oil crude surged over 4% to perform its best day in 2 years after bouncing off $63.74 to peak to $69.50; Gold bounced at 1,142.80 to recover the 1,200 area and to peak to 1,120. US stocks closed down on Monday as investors digested falling oil and gold prices over the weekend plus a poor economic data in China.
In the currency market, the EUR/USD ended almost flat (+0.15%) on the day after declining to 1.2415 but reaching a maximum of 1.2505. The pair remains contained by the 1.2400/1.2520 range. According to Valeria Bednarik from FXStreet, the "first line data later on the week coming from both economies suggest mentioned range will remain in place until then, starting with the ECB monthly economic meeting on Thursday."
The GBP/USD recovered nearly all of its losses on Friday, while the couple ended at 1.5725 (+ 0.52%) after bouncing at 1.5585. The cable traded to the upside amid better than expected UK manufacturing PMI and mortgage approvals. According to Bednarik, "some follow through above 1.5770 should signal further short term advances towards recent highs at 1.5825, with a break above this last probably triggering an upward acceleration up to 1.5860."
On the USD/JPY field, the pair rose to 119.15 early in the day; however it fell amid news from Moody’s that downgraded Japan's sovereign rating from AAA3 to A1. The pair fell to 117.85 before closing at 118.30 (-0.22%).
Bigger movers in Forex were USD/KRW (+1.99%), USD/RUB (+1.10%) and USD/BRL (+1.01%) in the upside; while top bearish performers were USD/NOK (-1.21%), EUR/NOK (-1.08%) and USD/CAD (-0.75%). Special comment to the USD/RUB that is rising 54.75% YTD, 61% since June, amid oild weakness and Ukraine crisis.
Key data:
Moody's cuts Japan's credit rating over heightened uncertainty over fiscal deficit reduction goals
Canada RBC Manufacturing PMI remains unchanged at 55.3 in November
United States Markit Manufacturing PMI down to 54.8 in November from previous 55.9
November 2014 US ISM manufacturing PMI 58.7 vs 57.8 exp
US stocks fell as investors faced news after Thanksgiving weekend