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Market Review 18.12.12

December 18th, 2012 Posted in Daily Forex News Bookmark and Share

The JPY remained within reach of a 20-month low against the US dollar in overnight trading, as speculations that the Bank of Japan will soon initiate an aggressive monetary easing policy weighed down on the currency. The USD/JPY, currently at 83.90, traded as high as 84.05 last night.

The EUR/USD saw relatively little movement during the Asian session, but remained close to a recent eight-month high as investors eagerly await any developments in ongoing US budget negotiations. The pair is currently at 1.3158.

Both gold and crude oil saw minor bullish movement last night as a weakened US dollar made commodities and precious metals cheaper for international buyers. Gold, currently trading at $1701 an ounce, gained close to $5 during the Asian session, while crude oil prices advanced $0.50 a barrel to reach $88.18.

Main News for Today

Today, a lack of significant global economic news means that the ongoing US budget negotiations are likely to be the biggest factor impacting the marketplace. Any signs that Congressional leaders and President Obama are closer to reaching an agreement to avoid the upcoming “fiscal cliff” of automatic tax increases and spending cuts, may encourage risk taking, which would benefit the euro, gold and crude oil.

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