By the start of the European session, currencies benefited from the optimism which extended from yesterday’s trading, yet optimism didn’t last as the European Central Bank offered more than expected loans for the euro-area banks.
Knowing that the BoE released its meeting minutes today, where the vote to keep the rates at 0.50% and the Asset Purchase Facility at 275 billion pounds was unanimous, as policy makers await the impact of the program that will end in February.
Noting that Asian stocks managed to end today’s session in green, while the European and American stocks couldn’t, as they dropped despite the data that was released by the US housing sector, where existing home sales incline in November above expectations, knowing that investors felt pessimistic after the ECB’s announcement.
In Europe DAX declined nearly 0.5% while CAC 40 dropped by 0.6%, on the other hand, the euro slumped against the US dollar trading around the 1.3039 level compared with the highest level today of 1.3198, dragging the pound to the opening levels trading around 1.5658 level.
The yen is trading around the 77.96 level. The AUD dropped trading around the 1.0063 level. The CHF is stronger today as demand on safe haven widened, trading around 0.9376 level, on the other hand, the USD trimmed some of yesterday’s losses trading around the 80.07 level.
As markets returned to the pessimistic view over the euro zone debt crisis and the USD experienced gains, commodities dropped, where gold is trading around the $1608.79 level from the opening at $1615.34, while oil is trading around the $98.20 per barrel level after the EIA report showed a deep decline in crude oil inventories.