Gold pared some of last week's gains as the BoJ's intervention to curb the yen's advance pushed the dollar higher, thereby damping demand on dollar-denominated commodities. The BoJ took a unilateral monetary action today, the third intervention in the FOREX market this year, causing the greenback to advance against a basket of major currencies. The U.S. dollar rebounded after falling over the previous four weeks. The dollar index, which tracks the greenback's movements versus six major currencies, is currently hovering around 75.93 compared with the day's starting level of 75.00, while it gained more than 1% versus the yen. Moreover, there are worries regarding the implementation of the measures announced by European leaders last week, where investors are keeping an eye lid on any details concerning the debt deal. The outlook in the coming period will rely on the implementation of euro area officials to the measures announced last week to contain the debt crisis in addition to the monetary policy adopted by both Federal Reserve and ECB, Secretary General of the OECD Angel Gurria said. Eyes will be on the G-20 leaders as they meet in Cannes, France, on Nov. 3-4 to continue their discussions on the repercussions of the financial crisis on global markets. This week, the attention will be on fundamentals from the advanced economies in addition to rate decisions by the ECB and other major central banks. The shiny metal was pushed up last week by optimism in markets following the European debt-relief accord which boosted demand on shares and commodities. European leaders agreed on Wednesday to make private sector bondholders to bare 50% of losses of Greek debt to cut the Greek debt by 100 billion euros, while leveraging the firepower of the EFSF to 1 trillion euros from the current 440 billion euros. In addition, the cheerful U.S. data has added to the positive sentiment. U.S. policymakers will discuss more measures to bolster the world's no.1 economy and to alleviate joblessness, where the main focus will be on the infamous non-farm payrolls report. Spot gold is traded around $1727.20 an ounce after recording a low $1744.79 and a high of $1704.60. Crude oil for December delivery retreated to trade around $92.50 barrel compared with the day's starting level of $93.42.
|
To ensure you receive such e-mails in the future, please add ecPulse.com to your list of approved senders.
No comments:
Post a Comment