Source: ForexYard
Even though we saw the U.S Dollar show some gains over the Euro during Wednesday’s trading, news out of the Euro-zone has been comforting for the 17 nation currency.
The Euro was 0.4% shy of a one-month high after European finance ministers are reportedly set to discuss plans of increasing the rescue fund.The Euro was preparing for its first quarterly gain against the Greenback since June prior to data reports out of Germany, the region’s largest economy that unemployment in the region was it its lowest in 20 years.The figures showed that the number of people out of employment dropped 10,000 from the month of February.
A draft statement written for European finance ministers showed the goverments in the region are preparing for a one-year increase rescue aid to 940 billion euros to keep the debt crisis under control.
Meanwhile, the safe-haven commodity gold showed a drop of 1.6% as the yellow metal failed to breach the $1,700 mark.
As some of you may or may not know,gold and the US dollar have a very interesting connection. Both known as market safe-havens in times of uncertainty or economic difficulties, but the real connection is when the Greenback strengthens, the metal weakens and visa-verse.
Yesterday’s trading saw the dollar make some gains over some currency counterparts which had a negative affect on gold prices.
Protests in India against tax hikes on non-branded gold jewellery as well as gold imports have gone into their second week on Wednesday which is contributed to the drop in gold price occurring late Wednesday. India is the World’s top gold consumer, and the protests are reportedly frustrating imports during a time where the metal is at a high demand.
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