Hi, I’m Martin Smith and this is your UFX
Markets Week in Review. Today, we will cover some of the major events of the past week
and discuss how they impact the global currency markets.
The Japanese Yen strengthened against the US Dollar after the Bank of Japan held back
from expanding monetary stimulus to devalue the currency. The US Dollar decreased against
the major currencies as weaker growth in the USA led to speculation about further monetary
stimulus from the Federal Reserve at its policy meeting next week. The Federal Reserve reported
last week that output at factories, mines and utilities decreased 0.1 percent last month
after a revised 1 percent gain in April. Manufacturing, which makes up approximately 75 percent of
total production, decreased 0.4 percent last month.
The Japanese Yen was last trading at the level of 78.69, which is a decrease of -0.81%.
The Euro increased against the US Dollar for a second week before the Greek election is
held this weekend, which will determine whether or not Greece will remain in the Euro Zone.
The vote will center on whether Greeks are willing to accept austerity measures that
will allow them to stay in the Euro or reject bailout conditions and risk the consequences
of leaving the 17 nation currency. The 17 nation currency increased on speculation
that Central Banks would be willing to provide aid to financial markets after last week,
when Spain became the fourth member of the Euro Zone to seek a bailout.
The Euro was last seen trading at the level of 1.2641 against the US Dollar which is an
increase of 0.07%. The British Pound rose on speculation that
the Bank of England will purchase more government debt to support the economy. The Governor
of the Bank of England presented joint steps with the Treasury to increase credit to banks
in the UK saying that the argument for further stimulus is ‘growing’. The Bank of England’s
liquidity plan would be to inject at least 5 billion pounds a month into the financial
system. The British Pound was trading at the level
of 1.5714 last Friday which is an increase of 0.99%.
In commodities, Gold traders are bullish for a fourth week in a row as the debt crisis
in Europe continues to disrupt markets. Even though Gold traders are more bullish, Gold
remains 16 percent below the record of $1,923.70 reached on September the 6th.
Gold was last trading at the level of 1,627.05 an ounce which is an increase of 0.23%.
Oil increased on speculation that central banks will take more steps to boost global
growth as investors wait for the results of the Greek elections this weekend. There is
heightened speculation that leaders of the Group of 20 nations will announce measures
to combat a global economic slump when they meet next week for talks in Mexico.
Oil was last seen trading at the level of 84.33 a barrel, which is an increase of 0.13%.
Well, that is all the time we have for today. I hope you’ve enjoyed this week’s review
and you’ll join us next week. Until then, be sure to visit us at UFXMarkets.com for
all of your online trading needs. For UFXMarkets, I’m Martin Smith. Good luck and happy trading.