Currency Updates:
U.S. Dollar Trading (USD) maintained its recent buoyancy against a number of majors despite growing as investors continues to express their disappointment at the “super committee” failure to compromise on means in reducing deficit. GDP also failed to boost sentiment being revised lower from 2.5% to 2.0%. FOMC minutes released did express that downside risks to the economy remained at the forefront of policy makers concerns, indicating of further measures of accommodative easing could be required. The NASDAQ fell 0.1%, the Dow Jones down 0.5% and the SA&P fell 0.4%.
The Euro (EUR) initially rallied against the USD to highs of 1.3570 in European trade on news that the IMF would allow countries to borrow as much as 5 times the original value of that country’s quota over 6 months boost sentiment. Yet the market reversal was significant as reports circulated of possible collapse of a Dexia rescue plan may place France’s AAA rating under pressure, ensuring the Euro unraveled any gains to trade at 1.3460 in Wednesdays Asian session
The Japanese Yen (JPY) once again was constrained trading in a range of 76.80 and a high of 77.05
The Sterling (GBP) was also restricted from maintaining any of its early gains post IMF news, following Dexia rescue plan collapse fears. The GBP had recorded highs near 1.5692 before easing to 1.5580
The Australian Dollar (AUD) has traded at fresh 6 week lows on Wednesday morning (Asia) of 0.9775 reacting to headline releases in EU. With risk substantially off the AUD continues to set multi week lows, with the NZD also recording an 8 month low of 0.7435. ALERT: China PMI released at 48 for November. Recording a 32 month low
Oil & Gold (XAU) XAU rebounded by US$23.80 to US$1702.40 an ounce. Crude rose by US$1.09 to US$98.01
