Thursday, December 6, 2012

The euro rose kinetic energy depleted concern ECB resolution

Wednesday (Dec. 5) New York session, the euro against the U.S. dollar from a seven-week highs, so the former Spanish bond auction result is disappointing, and weak economic data in the euro area, so that investors bet the euro has in recent days risetoo much too fast.

Of Greece in the past week to get more financial aid from the international gold master optimism driven by the strength of the euro, but the euro rally kinetic energy depleted fell below 1.31 against the dollar, the Euro technical outlook is bearish, the euro's recent liter potential order against the dollar so far this year rose 1.1%.

Days announced a number of European countries in November service sector purchasing managers index (PMI), the overall mixed data, the 10 euro-zone retail sales dropped 3.6%. On the other hand, Spain also auctioned 4.252 billion euros of medium-term bonds, the scale below the target range ceiling of 4.5 billion euros.

While in U.S. fiscal cliff negotiations message is still unsatisfactory, intraday U.S. President Barack Obama still adhere to its plan to raise taxes for 2% of the richest people, the House Republican leader Cantor also bluntly fiscal impasse in negotiations, the need face-to-face negotiations.

However, U.S. factory orders, ISM non-manufacturing PMI data are not subject to the impact of Hurricane Sandy unexpected strong performance in the U.S. stock market rose by a down turn, improved risk appetite, risk currencies have stabilized.

Before the European Central Bank monetary policy meeting on Thursday (December 6) at the same time, investors are also reluctant to make big bets. While the market expects the ECB to keep interest rates unchanged at 0.75%, but investors will be concerned about the aggravation of the recession in the euro zone, European Central Bank President Mario Draghi lowered borrowing costs will increase future will reveal clues.

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