Big Sell-Off Day for Stock Markets

Published 12/13/2011, 01:32 PM
Updated 04/25/2018, 04:40 AM
Asian and European trading sessions

Euro:

The Euro started out its day with a sharp move lower against the most major currencies in anticipation of auction of Italy’s government bonds. The expectations were negative amid spread fears of the debt crisis in EU countries. Also, the pressure on the Euro currency had to do with investors’ concerns about the potential consequences from the disagreement between the UK and EU leaders’ arrangements on the last Friday’s summit. The EUR/USD pair suffered big drop to $1.3182 at the end of the European trading session.
 
US Dollar: The U.S. dollar strengthened against of most major currencies together with the increased demand for safety assets. Moreover, another reason supported that outgrowth due to the expectations of tomorrow's negative report on Germany’s investor confidence. That report could show the reduction in investors’ confidence in European economy, which in turn results in increased demand for safe-heaven currencies, like US Dollar and Japanese Yen.
 
Japanese Yen: The negative dynamics of the major Europe stock markets and increasing demand for currencies with safe haven status supported the yen today. The USD/JPY pair traded around its daily highs of Y77.98 area during both sessions.
 
American trading session:
Euro: At the beginning of the American trading session the Euro currency suffered another nasty spill dropping to its daily lows at $1.3160 area. The reasons for that were the results of the Italian bonds’ auctions, which showed the reduction in the demand for it.
 
US Dollar: Dollar continued strengthening against the majority of currencies, since investors decided to put their money to safety assets, because of the falling American stock indices.
 
Gold: Today, the Gold prices showed the most significant one-day drop, being under pressure because of strong US dollar, and fell by 3% per cent to $ 1654 per ounce, to its lowest level in three weeks.
 
Oil: The Oil continued its downtrend which started last week. The closing price of the day recorded $97.8 mark.
https://forex-metal.com/news_posts

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