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Tuesday, December 1, 2009

U.S. markets finished with gains; Dollar consolidates losses and Gold holds near record highs

Wall Street finished in positive helped by better-than-expected economic data in the housing and construction sector that offset a positive but weak reading on manufacturing. The Dow Jones rose 1.23% and finished at the highest level in 13 months. Greenback is consolidating losses despite moving away from the lows. Gold holds near 1,200.

The ecPulse.com analysis team affirms: “The yellow precious metal hit a record today above $1,200 an ounce as the green Benjamin lost momentum considerably throughout the currencies market since trader's appetite of risk returned and corroded accordingly the refuge appeal of the Federal currency due to mounting hopes caused by today's overall cheerful news concerning the housing sector, knowing of course that these two have an inverse strong unbreakable relation.”
Crude oil also rose but failed to break above $79 a barrel and currently trades at $77,80. Long term treasuries tumbled sending yields to the highest level in a week.

Dollar moved away from the lows of the day but is still facing important losses. EUR/USD is back below 1.5100, the pair peaked earlier at 1.5118, a few pips below year highs. USD/CHF trades near the parity level after finding support at 0.9970. GBP/USD holds above 1.6600 and currently trades at 1.6610/15, 1.08% above today’s opening price. The pair reached the highest price of the day at 1.6647.

The Yen is also lower today even against the Dollar. USD/JPY lost most of the gains during the European and the American session but still trades above the opening price. The pair found support at 86.55 and at the moment trades at 86.70/75, 0.39% above today’s opening price.

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