Market Review 31.12.12

Source: ForexYard


The euro took moderate losses against the US dollar in overnight trading, as concerns regarding the ability of US lawmakers to reach a budget deal before the “fiscal cliff” of tax increases and budget cuts, led to risk aversion in the marketplace. The EUR/USD, currently trading at 1.3185, fell close to 50 pips during the Asian session.

Gold was able to benefit from the risk aversion in the marketplace, and gained close to $12 an ounce during the Asian session. The precious metal is currently trading at $1668.

Main News for Today

Today is the last day US congressional leaders have to reach a deal before automatic tax increases and spending cuts go into effect, which threaten to send the US back into recession. If an agreement is not reached in time, risk aversion may boost safe-haven currencies like the US dollar and Japanese yen.

Read more forex news on our forex blog

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.