European currencies continue to show signs of strength against the dollar led by the euro and the sterling.
The single currency is close to 1.31, where a temporary brake on its upward movement in 1.3112 can be found. Meanwhile, the pound is looking 1.62, value that provides strong resistance on the short-term charts, but it has to overcome the 1.6135 fractal.
However, the Swiss franc is an exception. The Swiss National Bank announced a further increase of the cost of holding money in that country, so that the effective rate for investors becomes negative. In fact, the EUR/CHF moved away from its original 1.20 to touch 1.2142 at its highest point of the day, which can exceed value during this European session.
This gives the franc also its own life and extends the operational possibilities of foreign investors, who do not see the Swiss currency to be absolutely useful pending the euro.
On another note, the interest rate cut by the Reserve Bank of Australia influenced the Australian dollar, although it has recovered. The cut was announced several days ago and had been discounted by the markets, so that the opposite effect is coming.
In America, the main actions overcame the negative effect of a weak ISM manufacturing for November, remaining almost unchanged after that it was on Monday. This time the currency joined in the behavior of the stock and continued to punish the dollar at the beginning of the last month of the year.
Unemployment rate in Spain reached a new record high, although the number of jobs lost was smaller than expected. For now, the euro has not taken note of the report.
The material has been provided by Instaforex Company - instaforex.com
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