Expectations for the EC meeting in Brussels.
Asian and European trading sessions:
Euro: The euro was under pressure due to the debt problems of some of the EC countries that weigh on the whole EC situation. During the morning trading the EUR/USD pair traded around the $1,3200-$1,3240 range. Euro received additional pressure from the announcement of Moody’s Investors Service regarding the possibility of reducing current rating of the Greek government obligations.
Market participants are waiting for the results of the EC meeting, which is taking place in Brussels. If EC leaders reach a common approach to avoid the proliferation of the credit crisis in the region, the euro could receive substantial support.
US Dollar: Greenback continued to strengthen on Thursday as well. The support was rendered by the expectations for the positive US fundamentals, which were planned to be released during the trading day.
British Pound: The publication of the strong UK economic data rendered temporary support to the sterling. In particular, the UK retail sales indicators turned out to be positive, and the GBP/USD reached the $1,5620 level. But later on, the pound stepped back from the reached daily maximums.
Japanese Yen: The USD/JPY pair dropped to the level of Y83.94.
Swiss Frank: According to the expectations, the Swiss National Bank left the principal rate unchanged at the level of 0.25%. As a result, the national currency stepped back from the reached maximums on Wednesday.
Oil: Released yesterday US oil inventories, which showed decrease, kept oil prices at maximum levels of around $88.50 per barrel. Later on the price decreased to $88.
Gold: Expectations for the results of the EC summit pressured the precious metals as well. The gold rate reached maximums of $1386, and fell back to $1380 per ounce. The silver reached maximums of $29.21 and stepped back to $28.98 per ounce.
American trading session:
US Dollar: The US housing starts for November turned out to be above forecasts: 555K against the expected 550K. Initial jobless claims decreased, and the Philadelphia Fed. index grew to 24.3 compared to forecasted 15.0.