EU Morning Report - Eurozone discusses baking union

The euro (EUR) is strengthening against most of its major counterparts, as details from discussions for a single banking authority within Europe emerge. European Central Bank (ECB) Executive Board member Asmussen restated his view that initially only financial institutions considered systemically important should be placed under this banking supervision and then this supervisory framework could be broaden to ultimately involve all banks. Furthermore, he added that the ECB should not be expected to be ready to act as supervisor by January 2013. The Australian dollar (AUD) is weakening across the board after the Reserve Bank of Australia (RBA) decided to cut its lending rate by 0.25%, naming international developments as the catalyst for this action.

§ Gold (XAU) has apparently met a resistance level around 1790 against the US dollar (USD), as it appears to be unable to break through it at the moment. Nevertheless, the trend still remains bullish.

§ OIL now hovers over 92.00 US dollars a barrel and a break above 92.80 could see the commodity recording new highs.

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