Source: ForexYard
The euro fell to a one-month low against the Japanese yen and a two-month low vs. the US dollar during overnight trading, as fears regarding an impending deadline for the US congress to reach a deal to prevent drastic budget cuts and tax increases, led to risk aversion in the marketplace. The so called “fiscal cliff”, set to occur at the end of the year, threatens to send the US back into recession if a deal cannot be reached in time.
Gold, which received a substantial boost after Barack Obama won the US presidential election, was able to largely maintain its recent gains last night. The precious metal spent most of the night trading around the $1718 level.
Main News for Today
ECB Press Conference- 13:30 GMT
• The press conference typically serves as a platform for the ECB to discuss the state of the euro-zone economic recovery
• Should EU officials voice any pessimism regarding either the Spanish or Greek economies, risk aversion could send the euro down further
US Unemployment Claims- 13:30 GMT
• Unemployment claims is forecasted to come in at 367K, slightly higher than last week’s data
• Should the figure come in below its forecasted level, the dollar could receive a boost against the yen during afternoon trading
US Trade Balance- 13:30 GMT
• Trade balance is forecasted to come in slightly worse than last month’s
• Any worse than expected data could lead to dollar losses during afternoon trading
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