Market review

In the beginning of the previous trading week the American dollar continued the decreasing dynamics against its high-yielding competitors. At the G20 meeting the decision to continue the programs for economy support has been taken, which in turn provoked the investments into the high-risk assets. And the Euro-zone fundamentals, which were released on Monday, rendered additional support for the euro. In particular, the industrial production volume in Germany for September turned out to be at the level of 2.70%, compared to the forecast of 1.00% and its previous month’s level of 1.70%. The German exports and imports demonstrated a considerable increase for September as well. As a result, the EUR/USD pair reached its maximums in the range of $1,5000. Along with the euro, the sterling grew sharply against the US dollar and reached its trading day maximum around the $1,6840 mark.
On Monday the fears regarding the hurricane effect on the output of oil in the Golf of Mexico influenced the oil prices. Due to the US dollar decrease the oil rate grew to the level of $80.00 per barrel. And the gold rate demonstrated new peaks. The new historical maximum has been registered above the $1110.00 mark per ounce. The silver rate also showed a sharp growth to the $17.655 level per ounce.
On Tuesday the US dollar demonstrated its temporary growth against its major competitors. The Euro-zone and the UK released fundamentals were the main reason for this. The ZEW Survey index of the economic sentiments in Germany for November turned out to be considerably below the forecast and the previous value as well: the factual level of 51.1 against the expectations of 55.0 and the previous level of 56.0. As a result, the EUR/USD pair decreased to the $1,4950 level. A rather unexpected statement, that the rating agency Fitch Ratings might possibly reduce the AAA rate of Great Britain, resulted in a sharp drop of the sterling against the American dollar. Consequently, the GBP/USD pair dropped to its minimums in the range of $1.6600. But during the second part of the day, due to the stock markets growth, the American dollar dropped again.
On Wednesday the Veterans’ Day was celebrated in the US and Canada, therefore, no important news were published. The American dollar showed negative dynamics against its major competitors during the first part of the day. This was a result of the released news on China. Particularly, the Chinese publication showed an increased industrial production output and retail sales above the expectations. Consequently, the speculations regarding the rehabilitation of the world economy were reinforced and influenced the US dollar weakening. During the American trading session the US dollar stepped back from the reached minimums. The strengthening of the dollar was a result of the announcement of the US Minister of Finances, Timothy Geithner, that the strong US dollar was necessary to the US.
On Wednesday the UK inflation report and the economic growth forecast were published. It was mentioned in the report comments that the UK economy rehabilitation would be slow. After that the sterling happened to be under pressure. The GBP/USD pair dropped to the level of $1,6534.
According to the published information on the same day, the high orders level of machinery and equipment in Japan was above the forecast. This factor influenced the yen consolidation against the US dollar.
On Thursday the American dollar demonstrated a positive dynamics. Due to the decrease of the main stock indices and the released negative Euro-zone fundamentals, the demand for the high-risk currencies dropped and the US dollar started to show a considerable growth against its major competitors. The monthly Euro-Zone industrial production change for September turned out to be below the expectations: 0.30% against the 0.50% level, and significantly lower than the previous month of 0.90%. The released data had a negative influence on the euro dynamics. And the EUR/USD pair decreased to the $1,4850 mark.
The initial jobless claims in the US showed a surprisingly better result compared to the forecast. The factual level amounted to the 502 thousand when the forecast was at the 510 thousand level.
On Thursday the employment change for October in Australia resulted in a much high volume than the forecast: The factual level grew for 24,5 thousand, when the forecast was negative at the level of 10,0 thousand. Therefore, the Australian dollar received a serious support and increased against the US dollar.
On the last day of the trading week the American dollar competitors strengthened again. The US trade balance, which was released on Friday, turned out to be much below the forecast. And the EUR/USD pair closed the week at the $1,4900 level.