| May 17 2012, 12:13:38 GMT | Sydney: | 22:13 | Tokyo: | 21:13 | Barcelona: | 14:13 | London: | 13:13 | New York: | 08:13 | San Francisco: | 05:13 |
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Market Brief
The U.S. Dollar saw mixed movement today as it rose against Sterling in anticipation of Wednesday’s FOMC meeting where decisions will be made regarding Treasury purchases. The EurUsd fell from 1.3934 to 1.3824 as the World Bank said the global recession would worsen 2.9% in 2009.The GbpUsd saw some volatile movement, jumping between 1.64 and 1.65, with an overall decline of 0.89%. The UsdJpy fell 0.9% as equity markets weakened in the U.S., with the Dow slipping 1.95%, the FTSE off 2.57%, and the MSCI down 3.044%. Commodities are lower across the board with oil down 3.57%, below $68bbl, while Gold fell 1.4% to a monthly low of $918.3oz in New York, as the dollar strengthened with the Dollar Index up 0.657%.
Risk averse behavior was driving U.S. markets today as treasury prices rallied following a flight to the safe haven US dollar. Despite a 1.9% rise in German ifo climate index for June and a positive 2010 outlook from Central Bank president Jean-Claude Trichet, the World Bank’s revised 2009 global economic outlook turned most currency pairs on their heads as it came out lower than the previously forecasted negative 1.7% contraction in March. Often used as a gauge of risk aversion, the yen and dollar rose against most majors. A weaker dollar is expected in the short term as the US government plans to sell 104 billion dollars worth of debt between the 23rd and 25th of June; giving Russia and China greater incentive to push for a supranational currency.
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