DAILY ANALYSIS for 31.10, 2012

Asian and European trading sessions:

Euro: The EUR / USD pair traded in a narrow range of $ 1.2954-69 during Asian session. The currency got pushed and strengthened against almost all major currencies on speculations that the Portuguese Parliament closer to the agreement on budget of 2013and the Portuguese lawmakers ready to go ahead for the primary vote. Due to the fact, the eurozone finance ministers will hold a conference call today. The EUR / USD pair showed rapid growth, setting a high at $ 1.3020 but then slightly decreased.
U.S. Dollar: The dollar came under pressure after yesterday comments of the Mr. Kocherlakota who said that the currently monetary policy is “too hard”. The dollar index fell 0.3% to 79.697 during the European session.
British Pound: The pound strengthened for a second day against the dollar on speculation that the Bank of England at the meeting scheduled for next week will refrain from further measures to stimulate the economy. The GBP / USD jumped to the area of $ 1.6135 during the European session.
Australian and New Zealand dollar: Australian and New Zealand dollar rose against most currencies, after the publication of positive statistics, which showed the growth of issued building permits. The Australian Bureau of Statistics recorded the growth in September by 7.8 %, exceeding economists’ estimates of 1%, while the volume of building permits in New Zealand rose by 7.8 %, showing the big increase since March 2012 and beating forecasted values of change by 3.0%.
American trading session:
U.S. Dollar: Amid falling U.S. stock indexes on the opening day after a two day closure associated with a hurricane, “Sandy” the U.S. dollar regained most of its previously lost positions. The Chicago PMI was up only 49.9 points in October which was considered as a significantly weak increase, much less than forecasts expecting it to be at 51points. Recall that a value below 50 indicates negative dynamics. Indeed, the business activity in the U.S. unexpectedly fell for the second month in a row in October, which again confirmed the fact that the manufacturing sector is not playing a main role in the reconstruction of the national economy.
Euro: After a teleconference between the Eurogroup finance ministers failed in reaching agreement on situation with Greece the single currency eliminated all its gains against counterparts. Mr. Schaeuble, though, said that the Greece has made some progress. The Eurogroup postponed the decision on a new tranche of € 31,5 billion for the country till November 12. If the tranche will not be provided the Greece will have to face a bankruptcy even in mid-of November.
Canadian dollar: The Canadian dollar fell on the publication of the result of Canadian GDP for August, which confirmed unrespect decrease by 0.1 % compared to 0.2 % in July. The Governor of the Bank of Canada, Mr. Carney, however, noted the possibility of rising of the interest rates in the nearest future.
Gold: The Gold rose on speculation that the European crisis will be contained, and the decline of the dollar will push the demand for the precious metal as an alternative investments. The December futures price of gold rose to 1725.87 dollars per troy ounce on COMEX today.
Oil: The Oil prices was trying to move up on weak dollar which fell in connection with the hurricane “Sandy” that caused the reduction in fuel consumption and the closure of 70% of plants at the U.S. East Coast. The December futures price of WTI rose to 87.17 dollars a barrel on the NYMEX.

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