Forex-Metal Daily Analysis -02/03/2012

The unemployment rate in Euro-Zone grew to 10.7% in January 2012.

 

Asian and European trading sessions:

Euro: The report on employment in Euro-Zone had a negative impact on the trading dynamics of the Euro currency. It recorded a rise in unemployment in the region to the level of 10.7% in January. As the result, the EUR / USD pair fell into the region of $ 1.3305 on the early Asian session .Demand for the euro was also limited due to an anticipation of today’s meeting in Brussels. On Thursday and Friday the European leaders and finance ministers will meet together in order to complete the organization of the second aid package to Greece.

U.S. Dollar: The demand for the U.S. dollar on early Asian session was supported by yesterday comments of the Fed Chairman Ben Bernanke, who confirm an improvement in the U.S. labor market, thus significantly reduced the chances of a new round of QE. During the European session, however, the U.S. dollar fell against most major currencies in anticipation of the publication of report on manufacturing purchasing manager’s index, ISM by the Institute for Supply Management, USA, the economists’ forecasts on which were positive.

British Pound: The GBP / USD pair became stronger today and strengthened to the area of $ 1.5970 at the end of the European trading session.

Japanese Yen: The USD / JPY pair remained within Y80.80-Y81.31 levels.

Australian and New Zealand dollar: These high-yield currencies rose after the publication of the report on Capital Spending by Japanese companies. The report showed the highest growth in the fourth quarter of 2011 by 7.6% versus forecasted -6.5%.

American trading session:

U.S. Dollar: The dollar fell against almost all its competitors after report showed a decrease in amount of Initial Jobless Claims, which recorded 351K, compared forecasted 355K. increasing speculation that global economic growth is recovering.

Gold: After yesterday’s 5% nasty spill the cost of the March Gold futures grew to 1724$ per ounce today.

Oil: The Oil showed an increase against the backdrop of strong report on the labor market in the United States. Also, an increased pressure on Iran provided by United States against its nuclear program was supported for today’s Oil growth. April WTI futures price rose to 108.75 dollars per barrel.