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.
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