Wed 24th Nov: Euro rallies past $1.31 on reserve review talk by Russian central bank, gold a whisker away from $450
The single currency finally breached the $1.31 mark yesterday in a technically driven and thinly traded market.
This movement was triggered by comments from Russia's Deputy central bank chairman who stated that the bank might review its holding of euro assets which was taken as a signal by the market to be a move by the bank to increase its euro reserves. The euro topped out for the day at $1.3105.
The market today focusses on important data releases like the US weekly jobless numbers, durable goods(expected to rise higher) and final Michigan sentiment numbers.
But it seems as if the traders are completely ignoring the short term US fundamentals and thus any dollar relief rally is very short lived. Further no intervention rhetoric from the EU officials and business houses also appears to be supporting the euro rally.
The Yen- despite an increase in the rhetoric by the Japanese central bank hovers around the early 103 mark as the markets await the numbers of tertiary services and the All industries index.
Gold took a further cue from the euro by shooting up to fresh 16 year highs of just short of $450 mark while increased concern over oil supplies from Iraq after a pipeline burst helped the crude oil futures rise to $50 yet again.
This movement was triggered by comments from Russia's Deputy central bank chairman who stated that the bank might review its holding of euro assets which was taken as a signal by the market to be a move by the bank to increase its euro reserves. The euro topped out for the day at $1.3105.
The market today focusses on important data releases like the US weekly jobless numbers, durable goods(expected to rise higher) and final Michigan sentiment numbers.
But it seems as if the traders are completely ignoring the short term US fundamentals and thus any dollar relief rally is very short lived. Further no intervention rhetoric from the EU officials and business houses also appears to be supporting the euro rally.
The Yen- despite an increase in the rhetoric by the Japanese central bank hovers around the early 103 mark as the markets await the numbers of tertiary services and the All industries index.
Gold took a further cue from the euro by shooting up to fresh 16 year highs of just short of $450 mark while increased concern over oil supplies from Iraq after a pipeline burst helped the crude oil futures rise to $50 yet again.
posted by Drs Search @ 9:52 AM
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