The Euro traded in a mixed environment against its peers on Wednesday, while we are awaiting the European Central Bank's meeting on Thursday. EUR/GBP and EUR/NZD were the day's leaders, as they rallied by 0.7% and 0.4%, respectively.
The US Dollar suffered losses against most major currencies, amid a surprise drop in the ISM Manufacturing PMI.
The most noticeable price divergence was observed between two types of oil on Tuesday. Crude added 0.8% yesterday, while Brent was the day's worst performer, as it lost almost 40 basis points. Energy prices continue to be volatile before two major this week's events including the US reserves data on Wednesday and OPEC meeting in Vienna on Friday.
Australian and New Zealand dollars were the best performers for the second consecutive day on Tuesday of this week. EUR/AUD slipped by 0.7% amid the Reserve Bank of Australia's decision to keep interest rates unchanged at 2.00%. The RBA previously noted that additional rate cuts are unlikely in the nearest future, and these comments strengthened the Aussie's advance versus the
The Pound experienced mixed performance over the day, not only advancing against some major peers, but falling against the others as well.
The US Dollar managed to appreciate only versus the Euro (0.29%) and the Japanese Yen (0.25%) on Monday, while declining against other major peers.
The Sterling experienced mixed performance over the last 24 hours, amid some fundamental data failing to beat expectations.
While silver continued to deteriorate on the last day of November by losing 0.14%, another precious metal, namely gold, surged by 1.36% and became the day's best-performing commodity. Gold has partly eroded the losses from Friday, but price increases continue to be in place on Tuesday.
The common European currency fell under heavy selling pressure on Monday of this week, as markets are setting eyes on the European Central Bank's meeting this Thursday. The regulator is expected to make several high-impact monetary policy decisions. According to the majority of economists, a further cut to the deposit rate, extension/expansion of the present QE and possibility of new
Due to the Fed rate hike stir, the US Dollar advanced against other major currencies on Friday and over the weekend.
The Sterling experienced mixed performance on Friday and over the weekend, mostly appreciating against commodity currencies.
The focus seems to be shifting back to the Federal Reserve as we are quickly heading toward December. Estimates that an eventual rate increase will push the US currency higher are putting additional bearish pressure on commodities. All of the components, which are included in our daily review, dropped by more than 1.3% on Friday of the previous week.
The Euro advanced in value on Friday, ignoring dovish expectations over the ECB meeting which is due to take place this Thursday. Only the EUR/USD currency pair failed to rally as it eventually dipped by 0.16% on the back of hawkish Fed expectations.
Despite a bank holiday yesterday, the US Dollar managed to appreciate against most major peers, with exception against the Yen.
The British currency mostly declined against other major peers on Thursday, with exception against the Aussie.
Today we have a limited look at commodity markets, owing to trading breaks yesterday for some of the components. Fossil fuels including natural gas and oil were the main downside movers on Thursday.
Movements of various Euro-crosses were very silent on Thursday as markets felt lack of volatility due to the Thanksgiving Holiday in the US. The EUR/USD currency pair was itself down by only 13 basis points yesterday, but there was no fundamental background for even such a small move.
Due to mixed US fundamentals yesterday, the US Dollar experienced mixed performance over the day.
The Autumn Forecast Statement helped the UK currency to strengthen against most major peers yesterday.
Positive trend of the yellow metal we had observed on Tuesday was reversed back to the south yesterday. Markets were reminded about negative implications for gold due to expected monetary policy changes from the Federal Reserve in December. Therefore, a sell-off resumed despite possible political tensions between Russia and Turkey, which triggered gold's purchases 48 hours ago.
The Euro was depreciating against all but one G8 currency on Wednesday on the back of expectations that the European Central Bank will expand QE programme in December. Moreover, fundamentals from other countries weighed on valuation of the 19-nation currency yesterday. Only EUR/CHF rose by 0.3% amid broad gains for the USD/CHF cross, which tried to assess the monetary policy
Despite better-than-expected US Preliminary GDP, the US Dollar suffered losses against most major peers, due to demand on safe-haven currencies increasing yesterday.
The British Pound sustained losses against other major currencies on Tuesday.
Except for natural gas and corn, commodities traded strongly to the north during the session on Tuesday. The market was driven by oil prices, which surged by almost 3% in the past 24 hours, owing to comments from Saudi Arabian officials who stated that the country is prepared to work with both OPEC and non-OPEC producers, in order to stabilise