Tuesday, January 29, 2013

Tend Sideways Dollar Weakens

Tend Sideways Dollar Weakens. U.S. Dollar moving in a narrow range on Tuesday against a variety of major currencies, as investors wait-and-see attitude ahead of the Federal Reserve's decision on interest rates and data nonfarm payrolls in the month of January as well as a monthly indicator for China's manufacturing sector. Observed so far the U.S. dollar index edged up 0.02% at 79.88 level, after reaching its highest point at 79.93 and an intraday low at 79.80 daily. This week will be a week packed with economic reports for the U.S., however, there is no expectation of a new surprise from the FOMC meeting, GDP or non-farm payrolls report, so the impact on the interest of investors towards riskier assets was limited so that the fluctuations are not expected to be too wild.

On the other hand, the Italian bond auction results were positive, triggering weak Italian bond yields to their lowest level since March 2010 helped reduce the demand for safe-haven U.S. dollar as improving risk appetite.

Gold Focused On FOMC Meeting

Gold managed to turn away from the weakening of the day before, but the short-term outlook is still quite weak with the focus fixed on the FOMC meeting and U.S. employment data.Observed so far Gold spot price rose 0.38% at $ 1,662.05, after reaching its highest point at $ 1,664.75 and an intraday low of $ 1,654.92 daily per troy ounce. Hawkish comments from the Federal Reserve and its consequences for the withdrawal of stimulus is still a major risk to the weakening gold price below $ 1.640 on the FOMC statement on Wednesday. Besides Gold also still waiting for nonfarm payrolls employment report on Friday.

European Shares Close Consolidated High Level 2-Year

European stocks consolidated on Tuesday after major indexes rose to their highest level last 2 years as earnings reports and a brighter economic outlook keep investor sentiment. Finally, after rising for several days in a row, the market consolidated due to overbought / overbought European composite index. However the rally is still potential to continue as the world economic recovery and global central bank stimulus.

Observed so far London's FTSE index rose 0.10% in the level of 6,267.00, while Germany's DAX down -0.04%, at thin 7,834.0 and France's CAC down -0.13% traded at 3,777.0 far.

Season are quite positive earnings offset by concerns over the Fed's stimulus withdrawal earlier than anticipated after a series of U.S. economic data reported to exceed expectations. The latest data, which showed that durable goods orders more solid indicators of U.S. growth, spurring speculation that the Federal Reserve will withdraw stimulus more aggressive monetary easing.

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