EU Morning Report - Obama wins the battle but the war is not over!
By NikolasX | November 8, 2012 11:28 PM EST
Whilst Obama sits happily in his chair at the white house, re-elected for 4 more years, markets were not as comfortable yesterday. Investor focus is now returning to crisis, the ongoing European worries have moved back to the top of the agenda. European Central Bank President Mario Draghi released a statement; that the ECB expects the euro zone economy to remain weak in the near term and added for the first time; that the problems were spreading to Germany. Meanwhile in Greece, the Greek parliament approved its harsh new austerity program with just 51% of votes in favour. Violence erupted as protesters hurling petrol bombs were hit with teargas and the water cannon.
§ The euro (EUR) took a major hit versus the US dollar (USD) falling 140 points from its high of 1.2876 to make a low of 1.2736, finally stabilizing at the 1.2760. A rebound today may be expected after yesterday’s sharp selloff.
§ The US dollar (USD) eventually ended the day with a -0.38% decline against the Japanese yen (JPY) after a day of major volatility, as the two safe haven currencies fight for superiority in these fearful markets.
§ Gold (XAU) hit a high of 1731.80, nearly 60 US dollars higher than where it was trading just 2 days ago. However, the precious metal fell back to end yesterday at 1717.50.
§ The UK 100 (FTS) slumped from 5879 to 5797, a 1.40% daily fall.
§ The US 500 (SPI) experienced its biggest daily fall this year, from 1423.50 to 1393.40, a 2.12% decline.
Stay in tune throughout the day with foreign exchange bullets!
|.||EURUSD||1.2810||SHORT @ 1.2810||57% of deals buy EUR|
|.||USDJPY||80.15||SHORT @ 80.15||68% of deals buy USD|
|.||GBPUSD||1.6015||SHORT @ 1.6015||48% of deals buy GBP|
|.||AUDUSD||1.0440||SHORT @ 1.0440||44% of deals buy AUD|
|.||GOLD||1721||SHORT @ 1721||60% of deals buy GOLD|
|.||OIL||86.20||SHORT @ 86.20||87% of deals buy OIL|
|.||GBP||12:00||Interest Rate Decision||0.50%|
|.||EUR||12:45||Interest Rate Decision||0.75%|
Oil (OIL) continued suffering yesterday with another daily loss of more than 4%. The black liquid struggled to make a clear break of a major resistance level at 88.30 during the election bull rally the previous day. It has now retraced almost 4 US dollars from its daily highs of 88.80. Today sees a possible dive even lower if the 84.80 support is clearly broken, with targets of 84.35 and 84.00. A rebound above the 85.50 may bring some solidification to otherwise unrelenting pressure.