Hi, I’m Emily Douglas and this is your UFX Markets Week in Review. Today, we will cover some of the major events
of the past week and discuss how they impact the global currency markets.
The Euro decreased for a fourth week, as Germany struggled with its bond auction, indicating
that the European debt crisis is starting to affect more fiscally stable nations of
the Euro Zone. Last week the Euro reached a low of seven weeks against the US Dollar
after Italian and German bond auctions failed to meet expectations.
Yields on 2 year Italian bonds rose to new highs, even though the European Central Bank
purchased Italian debt in an attempt to curb its rise.
German Chancellor, Angela Merkel, failed to endorse the calls for a Euro Zone joint borrowing
area and rejected calls for an increased role for the European Central bank to fight the
debt crisis. Speaking on November 24th at a press conference with French President Nicolas
Sarkozy and Italian Prime Minister Mario Monti, Merkel stated that Euro bonds would lead to
a convergence of interest rates in the Euro Zone.
The Euro traded mixed last week and on Friday was trading at 1.3236 which is a decrease
of 0.82%. On Friday, the British Pound reached a seven
week low against the US Dollar, affected by a weakness in the Euro and concern that European
leaders are failing to tackle the European debt crisis. Investors sold currencies viewed
as risky for the safety of the highly liquid US Dollar. The Sterling was last seen trading
at 1.5436, which is a decrease of 0.36%. The Canadian Dollar declined for a second
week as increasing borrowing costs in the largest Euro Zone countries indicate that
the debt crisis is becoming more difficult to contain. This is weakening the appeal of
assets linked to growth and the Canadian Dollar reached its lowest level against the US Dollar
in almost two months. The Canadian Dollar was last seen trading at 1.0463, which is
a decrease of 0.03%. In Commodities, Crude Oil rose as France called
for a European embargo on crude supplies from Iran amidst heightened concern that Middle
East tensions will disrupt oil supply. Oil was last trading at 96.77 which is an increase
of 0.62%. Gold traders are more bullish, however Gold
fell last Friday under pressure from weakness in the Euro, even though holdings of Gold
in exchange-traded funds reached a new record high. Gold was trading last Friday at 1680.23
which is a decrease of 0.84%. Well, that is all the time we have for today.
I hope you’ve enjoyed this week’s review and you'll join us next week. Until then,
be sure to visit us at www.UFXMarkets.com for all of your online trading needs. For
UFXMarkets, I’m Emily Douglas. Good luck and happy trading.
