The British Pound declined against other major currencies on Tuesday, due to a high budget deficit reading.
There was no unanimity observed among various commodities on Tuesday. Moreover, even different types of oil showed divergence in price changes as Brent rallied 1.15%, while Crude was down 0.3%. Precious metals traded noticeably to the downside, being that appreciating US Dollar is making safe-haven metals less attractive for investment.
The Euro continued to trade in red versus the majority of other currencies on Tuesday. However, some positive changes were posted as well. Among them, EUR/GBP gained 0.4% as data showed UK public sector net borrowing surging to the highest level in three years in August. Spending surpassed revenues by 12.1 billion pounds in the reported month, while economists estimated
The broadly stronger US Dollar advanced against other major currencies on Monday.
The British currency appreciated against most major peers, with exception against the US Dollar, as the hawkish comments of several Fed members strengthened the Buck.
Gold was the worst performer among all major commodities on Monday. It slumped by 0.44% amid strength of the US Dollar, which rallied after hawkish comments from several FOMC members. On the contrary, silver avoided losses and managed to gain 0.1% yesterday. On the positive side, oil prices rebounded 2-3% in the past 24 hours as US oil-rig count fell
The Euro failed to rise versus any single currency for a second day in a row on Monday. The smallest negative change, however, amounted to just 0.04% and 0.06% against EUR/AUD and EUR/NZD, respectively. On the other hand, EUR/USD dropped the most by 0.9%, following hawkish comments from a number of FOMC members who admitted that interest rates should be
The Greenback advanced against most major peers, but still suffered an insignificant loss of 0.07% versus the Yen and 0.17% against the Kiwi.
The Sterling showed mixed performance over Friday and the weekend, declining against most Asian currencies.
Precious metals were the only commodities to rally on Friday of the last week. Gold gained 0.56% and silver traded 0.28% higher, helped by the decision of the Federal Reserve to leave interest rates unchanged for now. Moreover, additional impetus came from updated Federal Funds rate futures, which showed the first hike may take place only in early 2016.
The Euro retreated precipitously on Friday as there was no increase registered versus any of major currencies. The Kiwi rallied 1.14% versus its pan-European counterpart, following a dovish decision of the Fed to keep the Fed Funds rate within the range of 0-0.25%.
The US Dollar added to the losses made on Wednesday. The currency gave up 0.98 and 0.86% of its value relative to the Euro and Swiss Franc respectively.
The Pound showed mixed performance yesterday. While the Sterling outperformed commodity currencies and the Greenback, it depreciated 0.52-0.63% against its European counterparts.
Among researched commodities, only precious metals managed to rally yesterday. The Federal Reserve's decision to hold interest rates unchanged this time pushed silver and gold prices to the north by 1.6% and 1%, respectively. On the contrary, weaker US Dollar failed to lift off oil prices on Thursday as they dropped in the range between 1.2% and 1.7%.
The Euro surged 1% against the US Dollar on Thursday, even though the reaction to the Fed decision could potentially be even stronger. The Federal Open Market Committee decided to keep interest rates unchanged for now, signalling that an increase is still possible this year. On the other hand, the Fed did not announce a press-conference in October, meaning that
Tuesday's gains were negated by yesterday's sell-off across the board. The US Dollar fell 1.09 and 1.04% relative to the Pound and the Aussie respectively.
Yesterday the UK currency outperformed all its major counterparts amid strong fundamentals. The British Pound appreciated the most against the Japanese Yen (1.20%) and the least against the Australian Dollar (0.05%).
Despite becoming 1.33% more expensive, gold failed to stay at the top of the list among best performers of Wednesday. Oil and silver traded in green and rallied more than 3% yesterday. Crude and Brent surged 5.2% and 4.1%, respectively, as market consensus suggests the Fed will keep rates unchanged on Thursday.
There were two distinct downward changes of the Euro against other major currencies on Wednesday. A drop versus the Sterling and Australian Dollar amounted to 0.9% and 0.85%, respectively. The Pound appreciated after optimistic labour market fundamentals, which showed the jobless rate falling to 5.5% and wages growing by 2.9% in the three months through July.
Yesterday, the US Dollar was among the currencies that gained the most. While AUD/USD and GBP/USD gave up 0.52 and 0.54%, USD/CHF rose as much as 0.61%.
A second day in a row the British Pound was the second worst performer, though this time after the Swiss Franc instead of the Euro.
Weaker US Dollar helped to raise prices for some commodities, while others failed to gain bullish momentum on Tuesday. Among positive performers, oil climbed by 1%-1.6% yesterday as markets are sceptical about the Fed rate hike tomorrow.
The Euro traded in a mixed environment on Tuesday as changes were predominantly driven by factors influencing other currencies. EUR/CHF gained the most of 0.3% as risk appetite returned to the markets, equities surged across the board and therefore decreased the demand for the safe-haven Swiss Franc.
The US Dollar was neither among the worst performing nor among the best performing currencies yesterday.