de | cn | ru

Market News

US Forex session summary: CHF and Gold hit new records

Aug 08 2011
By
Forexbrokerz.com
 
The euro extended its decline against the U.S. dollar in the session, erasing all gains made today in the Asian session when it was boosted due to news that the ECB purchase of Italian and Spanish debt initially alleviating concerns of debt contagion in the euro zone. However, this wave of optimism was very short lived as investors have doubts about the crisis being contained to the peripheral region and not spread to the core euro zone countries. EURUSD dropped to a session low of 1.4149 from the open of 1.4268.
 
Sterling followed the euro’s direction as risk aversion pushed investors away from riskier assets like the Pound  to safe havens. Concerns of a global economic slowdown will hurt the British economy further as a recent spate of poor U.K. economic data gave evidence of slow growth. Meanwhile, the Bank of England quarterly inflation report is due on Wednesday,which  if it includes a negative growth outlook for the U.K. economy, will knock down the Pound even further. GBPUSD fell to a low of 1.6295 from the session open of 1.6404.
 
The Swiss franc hit new record highs against both the dollar and the euro in the North American trading session as flight to safety pushed investors to the safe haven Swiss currency.  The S&P downgrade of the United States raises uncertainty about the credibility of the U.S in the global economy as investors worry about another recession. The credibility of the U.S. government is also at stake now and whether it would be able to deal with further debt issues, since the recent deadlock in the debt ceiling talks proved how divided the U.S. government is instead of being united in times of financial crisis. USDCHF hit a record low of 0.7480. Meanwhile, the euro zone debt issues weighed on the euro today as well, since the optimism that the ECB will halt debt contagion in the region by purchasing Italian and Spanish bonds, has faded away. EURUSD touched a record low of 1.0613.
 
Yen continued to gain strength leading USDJPY to extend its decline to 77.50 as investors dumped the dollar after the S&P downgrade the U.S. credit rating. The Yen is perceived to be a safer currency during these times of financial uncertainty when  the S&P downgrade knocked down investor confidence in the economic recovery of the U.S. and the rest of the world. However, the markets are cautious that  Japanese authorities will re-intervene in the market if the dollar falls to the level at which it sold yen for dollars last week in an attempt tot curb yen strength.
 
Canada’s dollar weakened to a near five-month low against its U.S. counterpart, as fears of a double-dip recession south of the border increased after news of the U.S. credit downgrade by S&P. The U.S. is a major trading partner of Canada so any slowdown in growth there will spill over to Canada. Additionally, falling crude oil prices today dragged down the loonie, which is a commodity-linked currency since Canada is a crude oil exporter, mainly to the U.S. USDCAD rose to 0.9925, the highest level since March 17.
 
 
Gold climbed yet to another historic high in New York trading to $1,720.32. Demand for the safe haven asset, which seems to be the only one at the moment, has surged today as investors flee from risk due to mounting concerns on debt issues on both sides of the Atlantic and  a slowdown in global economic growth.
TAGS: us forex session  eurusd  gbpusd  usdjpy  usdchf  usdcad  gold  record 

Related forex news

Forex
Broker Country Regulation Platform Min Deposit Review
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Cyprus, SVG CySEC MT5, Web,
cTrader
$100 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5, Iress $100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT5 $5 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website

More Forex Market News

Three arrested in connection to a $722 mln crypto scam

Dec 11 2019 18:20:02

The U.S. police have arrested three individuals in connection to a crypto mining scam that costed investors over 722 million USD. Read more

China to launch bank backed digital currency in Shenzhen and Suzhou

Dec 09 2019 18:20:09

China's central bank, the People’s Bank of China (PboC), is proceeding with its plan to launch a central bank- backed digital currency (CBDC) in two major cities – the 14 million megalopolis of Shenzhen, which neighbors Hong Kong, and Suzhou - a historical city west of Shanghai. Read more

PlatiniumFX and Capital GMA end up on CONSOB’s warning list

Dec 09 2019 16:47:02

  The latest additions to the warning list of Italian financial regulator CONSOB (Commissione Nazionale per le Societa e la Borsa) are PlatiniumFX, Capital GMA, and several other unregulated brokers. Read more

CFTC warns about 20 new forex and binary options scams

Dec 06 2019 17:46:44

The US Commodity Futures Trading Commission (CFTC) updated its warnings list with twenty new forex and binary options scam websites, bringing the total blacklisted websites to nearly 150. Read more

Thai authorities seize over 15 million baht from Forex-3D scammers

Dec 06 2019 10:38:02

  Officials from the Thai Department of Special Investigation (DSI) seized over 15 million baht from the owner of Forex- 3D Ponzi scheme and his associates, the Bangkok Post reported on Thursday. Read more

EU finance ministers agreed to block Libra

Dec 05 2019 13:46:59

EU finance ministers have agreed that  private digital currencies like Libra – the crypto coin Facebook plans to launch in 2020, should not be allowed in the European Union until all possible risks are identified and properly addressed, Reuters reports. Read more

CFTC looks for a binary options scammer who defrauded investors with $3,8 mln

Dec 03 2019 17:20:38

The United States Commodity Futures Trading Commission (CFTC) apparently can not locate Peter Szatmari, who defrauded nearly 4 million USD from binary options investors. Read more

Bulgarian court allows the extradition of Gal Barak to Austria

Dec 02 2019 17:51:14

After a successful operation of the police in Austria, Germany, the Czech Republic and Bulgaria has lead in February to the arrests of several financial executives, among which the Izraeli citizen Gal Barak, who is charged of orchestrating an online trading scam, that allegedly has defrauded Europea... Read more

Italy’s CONSOB blacklists EvolutionBrokers and KapitalSwiss

Dec 02 2019 15:30:33

   Italy's financial regulator Commissione Nazionale per le Societa e la Borsa (CONSOB) has blacklisted a bunch of unregulated brokers today, including EvolutionBrokers, and KapitalSwiss. CONSOB also ordered internet providers to block access to their websites. Read more

91 arrested in Indonesia over an online investment scam

Nov 29 2019 10:32:00

The Indonesian police has arrested 85 Chinese nationals and 6 Indonesians over an online scam that defrauded victims of over 36 billion Indonesian rupiah (2,56 million USD). Read more

de | cn | ru